Business

Largest digital wallet in Brazil, PicPay enables personal loans for a quarter of its base

In this debut in the world of consumer credit, 14 million users of the app will have access to the service

PicPay's headquarters, in Sao Paulo. Photo: PicPay/Courtesy
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  • According to PicPay, interaction within the platform – which only tends to increase with the launch of in-app messaging services – and the app’s high artificial intelligence capability allows pre-approved credit to be more assertive and adherent to the user, thus facilitating conversion;
  • The new offer is also another step of PicPay towards open banking-based opportunities.

PicPay debuted this Wednesday in the world of consumer credit. It started to offer personal credit to 14 million of its more than 45 million users. The intention of the largest digital wallet in Brazil and Latin America, over time, is to consolidate itself as a financial marketplace. As LABS showed last week, the company is on track to become a super app.

“Besides being an important product for the business, it is in line with the market moment of the strong expansion of credit granting and more attractive rates,” said Frederico Trevisan, head of Credit and Cards at PicPay, in a press release.

READ ALSO: Open banking’s debut in Brazil will create products and services that we now can’t even imagine, says Guiabolso’s CEO

According to PicPay, interaction within the platform – which only tends to increase with the launch of in-app messaging services – and the app’s high artificial intelligence capability allows pre-approved credit to be more assertive and adherent to the user, thus facilitating conversion.

READ ALSO: Open banking can grab up to BRL 110 billion from traditional banks in Brazil

The new offer is also another step of PicPay towards open banking opportunities. Brazil’s open banking initiative debuted in early February, with the promise of expanding access to credit and financial products for consumers and companies. In the case of PicPay’s new credit offer, as other players join the wanna-be super app platform, the tendency is for the conditions of the offer to improve and the rates to fall.

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