Business

Brazilian retail giant Magalu announces digital payment tools for its more than 90,000 sellers

The new range of financial services were announced at the company's annual event and are a direct result of its bold M&A strategy

Magalu will offer digital payment tools to its merchants
Photo: Magalu/Courtesy
Ler em português
  • As Magazine Luiza aims to become Brazil’s number one super app, its new tools push sellers for digital solutions;
  • The Brazilian retailer reported over $570 million in sales made by its merchants in 2021’s second quarter.

Brazil’s retail and e-commerce behemoth Magazine Luiza (or just Magalu, as is also known) announced a set of financial tools to its sellers on Tuesday. The company will offer them three different options of POS terminals, free digital bank accounts, and a landing solution The company disclosed its new financial services during its annual event, Expo Magalu. The retail giant has over 90,000 partner sellers in its marketplace — with over $570 million in sales generated by them in the second quarter of 2021.

READ ALSO: Magalu makes its seventh acquisition of 2021: the debit and credit cards processor Bit55

Called Magalupay, the POS terminals will be available to small and also big sellers operating on Magazine Luiza’s platform. These terminals, together with the digital account, will allow sellers to receive not only credit and debit card payments, but also electronic transfers and PIX (Brazil’s instant payment method). The terminals also come with an integrated CRM solution that helps sellers handling storage, payments, and other tasks. The new credit offer, on the other hand, is intended to help sellers increase production or stock inventory.

READ ALSO: Only 3.8% of Brazilian cities have a developed payment ecosystem, Visa study shows

All these services were made possible thanks to the flurry of acquisitions that the company has been making since 2020. Magalu’s CEO Fred Trajano seems unstoppable on its M&A plans and the main goal of transforming Magalu into Brazil’s number one super app.

Get the best insights about Latin America market in your inbox