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Brazilian retail giant Magalu makes its seventh acquisition of 2021: the debit and credit cards processor Bit55

The acquisition will boost the operations of Hub Fintech, acquired in 2020 as part of the company's financial services expansion strategy

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  • With Bit55, Hub Fintech will be able to issue credit and debit cards. The fintech already offers prepaid cards and has 4 million digital accounts;
  • In 2020, Hub Fintech processed BRL 7 billion in transactions;
  • According to Magalu, Bit55 is highly scalable, being capable of processing more than 2,000 transactions per second.

Magazine Luiza, which now presents itself as the “largest buying and selling ecosystem in Brazil” and already calls its app a “super app,” announced on Tuesday its seventh acquisition of the year: Bit55, a technology platform for processing credit and debit cards transactions in the cloud.

According to the company, the platform will strengthen the operations of Hub Fintech, a payment institution acquired last year through its subsidiary Magalu Payments, an essential move for expanding Magalu’s financial services.

READ ALSO: Magazine Luiza: e-commerce drives growth and already gets 70% of sales

With Bit55, Hub Fintech will be able to issue credit and debit cards. The fintech already offers prepaid cards and has 4 million digital accounts. In 2020, Hub Fintech processed BRL 7 billion in transactions.

According to Magalu, Bit55 is highly scalable, being capable of processing more than 2,000 transactions per second. “In addition, it offers all the necessary structure for managing a portfolio of credit cards, which includes receiving the proposal, sending cards, capturing and authorizing transactions, issuing the invoice, receiving and automatically reconciling”, stated the company.

READ ALSO: Latin American giant retailers bet on financial services to become a super app or ecosystem

Bit55’s proprietary technology was developed by Banco BS2 for processing its own cards over the past two years. “By demobilizing this asset, we are following our strategy of being a bank focused on SMEs. Having the discipline to pursue this guideline is fundamental for our growth. We remain Bit55’s first customer, which, driven by Magalu, will gain even more muscle”, said Marcos Magalhães, CEO of Banco BS2, in the press release.

Bit55’s acquisition still needs to be approved by Brazil‘s Administrative Council for Economic Defense (Cade).

READ ALSO: Magalu wants to grow in on-demand grocery services and reduce the delivery time of third-party sellers

In 2021 alone, Magalu bought two content companies (Steal The Look and Jovem Nerd), two delivery companies (ToNoLucro and GrandChef), an e-commerce platform (VipCommerce), and the startup focused on smart search tools SmartHint.

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