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Rappi launches credit card in Colombia

The card is being launched in partnership with Davivienda and Visa, and will be available in December

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  • The card will allow users to have additional benefits within Rappi, such as cashback to purchases made through the app;
  • And a “personal banker”, someone to give personalized attention to each user;
  • The launch happens weeks after the arrival of the Brazilian decacorn Nubank in the country.

In the next months, Rappi‘s users in Colombia will be able to access the platform’s credit card, which will be available from December 2020. The request will be made directly from the app. The card is being launched in partnership with the Colombian bank Davivienda and Visa, and will allow users to have additional benefits within Rappi, such as cashback to purchases made through the app and a “personal banker”, someone to give personalized attention to each user.

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“We are sure that this credit card will revolutionize the way Colombians relate to their banking entities,” said Gabriel Migowski, CEO of RappiPay, the payment arm of the startup to Portafolio Colombia. “Every time the card owner views his card details in the app, it changes. There are no identification numbers or security code printed on the physical card. The card details are only visible in the Rappi app for the card owner through facial recognition, fingerprint, or security code ” announced the executive to the website.

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This new card features Visa contactless technology, which, according to what Humberto Guihur, general manager of Visa Colombia told Portafolio, reached 20% of face-to-face Visa transactions in Colombia in August this year.

It is not yet known when the credit card will be launched in the other eight markets of the startup in Latin America. June last year, Rappi launched a pre-paid card linked to its digital wallet in Brazil. Four months later, the startup also started offering pre-paid cards in Mexico.

In September, received a new investment round of more than $300 million, led by the American investment firm T. Rowe Price.

Battle of Latin American unicorns

Two weeks ago, the Brazilian decacorn Nubank announced its arrival in Colombia, saying that it will invest $150 million for the next eight years in the country. Under the name Nu Colombia, the company will create a hub of technology, data science, and design in Bogotá. Colombia is the motherland of David Vélez, CEO and co-founder of Nubank.

Nubank’s first product in Colombia is its contactless fee-free purple Mastercard credit card which will hit the Colombian market in the upcoming months. There is already an online waiting list for Colombians to apply and order the card.

In August, Nubank also received a new round of $300 million. The neobank has more than 30 million users in Brazil and Mexico.