Magazine Luiza, the Brazilian retail behemoth, launched today its own fintech, called Fintech Magalu. The new business arm will integrate other financial products and services already offered by Magazine Luiza, and is a new step in the company’s strategy of diversifying its portfolio, aiming at user retention and recurrence.
Fintech Magalu is not Magalu’s first foray into the financial services sector. Last year the company had already launched a set of financial tools for its sellers, including POS terminals, free digital bank accounts, and credit offers.
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Now, with Fintech Magalu, Magazine Luiza expands its offer of financial products to the external public and beyond its own ecosystem. “Fintech Magalu does not work exclusively for Magalu’s ecosystem. We are already a reference in providing financial services to more than 50 companies”, said Robson Dantas, fintech‘s director. According to Magazine Luiza, Fintech Magalu already has a user base of 16 million customers, including individuals and companies.
Fintech Magalu arrives on the market by launching two new products: a credit card for companies, aimed at more than 160,000 sellers that use Magazine Luiza’s marketplace, and loans for individuals, offered directly on Magalu’s SuperApp.
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Still in the trial phase, the credit card for companies will be integrated into a benefits program that allows them to accumulate and exchange points for services offered by Magalu’s ecosystem. The loan solution for individuals is now available and is calculated based on the consumer’s profile analysis. The customer can request a loan through Magazine Luiza‘s app, after the risk analysis process, the credit is available directly on MagaluPay, Magalu’s digital account. “We have already pre-approved, based on a careful risk analysis, credit for 10 million customers in our base”, said Dantas.
Fintech Magalu is the result of Bit55, Stoq and Hub Fintech integration, besides adding the Luizacred operation. In 2021, Fintech Magalu processed a TPV of BRL 65 billion, considering the operation of credit card for individuals, financial services through the marketplace and BaaS’ services provided to several companies.