Nubank reaches e-commerce with the acquisition of Spin Pay, an instant payment fintech

Eyeing the e-commerce boom and the popularity of PIX in Brazil, the digital bank now also offers payment solutions for e-commerce

Nubank reaches e-commerce with the acquisition of Spin Pay, an instant payment fintech
David Vélez, CEO and founder at Nubank, and Alan Chusid, CEO and fouder at Spin Pay. Photo: Nubank/Courtesy
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Keeping an eye on the e-commerce boom and the popularity of PIX (the Brazilian instant payment system) as a payment method in Brazil, Nubank has announced the acquisition of Spin Pay, an instant payment platform focused on e-commerce that offers PIX as a payment method. With this, Nubank takes an important step in its strategy of expanding and diversifying its portfolio and reaches e-commerce.

According to the digital bank, the plan is to keep Spin Pay’s current clients and expand its user base, bringing PIX as a payment method to more consumers and e-commerce platforms. Nubank said it already has about one-fifth of the PIX keys registered in Brazil and has concentrated more than 30% of the transactions made with PIX since the system was launched by the Brazilian Central Bank.

READ ALSO: After a wave of scams and frauds, Brazil’s Central Bank announces new rules to increase PIX security

David Vélez, CEO and founder of Nubank, said that the success of PIX proves that customers are looking for simple, efficient solutions without abusive fees for real-time transactions. According to him, PIX “was pretty much the nubankcarization of the financial sector“. “We already offered free and instant transfers. Now, we want to spread the Nubank way in e-retail as well and bring PIX payments to more merchants and consumers in the country,” he said.

Founded by Alan Chusid, Felipe Park and Marcelo Mingatos, Spin Pay offers digital retailers cutting-edge technology with an efficient, instant and inexpensive payment solution – through which customers can make purchases quickly or by scanning the QR code on the screen. According to Chusid, the acquisition by Nubank will enable Spin Pay to scale and develop new payment products for the digital bank.

READ ALSO: Brazil’s PIX: in six months, 87.3 million users and a 3.299% rise in P2B transactions

This is Nubank‘s fifth acquisition in just over a year. In 2020, the digital bank bought the investment platform Easynvest (now Nu Invest), Cognitec, a software engineering company, Plataformatec, a consulting firm focused on product development and management, and the American platform Juntos Global, which provides automated and personalized proactive conversations between banks and their clients.

PIX becomes the favorite payment method among Brazilians

Since its launch last November, the PIX has already surpassed the number of transactions made by DOC (a banking transfer that works in business days, from one day to another), TED (a faster banking transfer because it is done during business hours, but more expensive) and bank slips. More than BRL 1 trillion have been handled via PIX in a little over six months of operation.

READ ALSO: Buffett-backed Nubank to seek IPO valuation of over $55.4 billion, say sources

A recent survey done by Capterra on adherence to the system showed that most physical retail consumers are willing to stop buying from a store if it does not offer the option to pay with PIX.

Last week, the Brazilian Central Bank released new security rules for PIX, the country’s instant payments system, launched in November 2020. The rules also apply to other means of payment, such as prepaid and debit cards and TEDs (as same-day transfers in the country are called). The main measure is the limit of BRL 1,000 for transactions between individuals between 8 pm to 6 am. Customers, however, can request an increase in these limits.

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