Business

PagSeguro wants to build its own investment platform, says Brazil Journal

Known for its acquiring operation, the company launched a digital account, PagBank, last year and needs to add services to attract and retain customers

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LABS

13.Jul.2020 13:25 BRT
UPDATED 14:31 BRT

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A team is already be assembling for this: last week, the company hired the head of Ágora’s financial products;
And a headhunter firm is talking to professionals in the equity and derivatives areas.

According to Geraldo Samor, from the Brazil Journal, PagSeguro is preparing to launch an investment platform market. A team is already be assembling for this: last week, the company hired the head of Ágora‘s financial products, and a headhunter firm is talking to professionals from the equity and derivatives areas.

Another talent hired by the company last year should also collaborate for the new business: Ana Carolina Camargo came from Pi, Santander’s independent investment platform, to assume the position of head of investments and exchanges.

As Samor pointed out, PagSeguro’s entry into the Brazilian investment platform market, nowadays dominated by names such as XP, Genial, Guide, modalmais and others, is a way to attract new customers and complement the product line of its digital bank, PagBank , which today only offers savings accounts, debit and credit cards.

“They [PagSeguro] know that the acquiring market has a declining profitability and are trying to offer a series of options to keep the customer in the ecosystem,” said an investor to Samor.

As shown by LABS last week, PIX, the instant payment system under the leadership of the Brazilian Central Bank, which is due to officially debut in November this year, should ‘steal’ an important part of the payments made today by boleto bancário (the Brazilian popular bank slip) and debit cards, in addition to the deposits and transfers in general. If widely adopted by the Brazilians, this new way of making payments and transfers can also lead acquirers to lose up to 63% of their revenue, or BRL 13 billion if considering the combined revenue of BRL 21.4 billion for the five main players in the national market (Stone, GetNet, PagSeguro, Rede and Cielo) in 2019. The estimate was made by the German consultancy Roland Berger.