Business

Through a joint venture with Itaú, Magazine Luiza launches digital credit card

Launched through the joint venture with Itaú Unibanco (Luizacred), the card is embedded in Magalu's super app

Magazine Luiza Brazil
Photo: Shutterstock
Ler em português
  • The card is being launched through Luizacred, a joint venture with Itaú Unibanco;
  • The new product integrates the Magalu super app, where users will be able to check balance, available limit and pay the credit card bill;
  • The cashback will be deposited in Magalu’s digital account, MagaluPay, which has about 3 million accounts open;
  • According to the company, the card will be another way to increase the transaction volume of MagaluPay, which is already enabled to make payments and transfers, including via PIX.

Brazil‘s retail giant Magazine Luiza announced on Monday the launch of a digital credit card with no annual fee and cashback deposited in the retail giant’s digital account, MagaluPay.

The card, launched through Luizacred, a joint venture with Itaú Unibanco, is integrated with the Magalu super app. In the application, users will be able to check their balance, available limit, and pay their credit card bill.

“The Magalu Card will be the link between the physical and digital worlds of the super app. It will bridge the gap with MagaluPay,” says Robson Dantas, director of fintech at Magalu. “The card will increase the use of our app and enhance customer loyalty, as users will have benefits to buy in our ecosystem.”

READ ALSO: Magalu makes its 5th acquisition in 2021 aiming to enhance ‘SuperApp’

One of the benefits of the new card, according to the company, is a 2% cashback on top of purchases in all its sales channels: super app, website and physical stores. As part of the launch promotion, customers who apply for the new card by May 31 will receive a 4% cashback on top of all purchases made in Magalu for one year.

Magalu’s digital account has about 3 million open accounts and, according to the company, the card will be yet another way to increase the transaction volume of MagaluPay, which is already enabled to make payments and transfers, including via PIX.

With the Visa flag and the benefits of a Platinum card, the new card features contactless payment technology. “With the exponential growth of e-commerce, we felt the need to expand our portfolio and launch a card aimed at a more digital consumer,” says Tatiana Ferreira da Silva, director of Luizacred.

READ ALSO: Magalu and Jovem Nerd: the content magic in the business world

According to Magazine Luiza, the digital account has a base of 5 million active cards that transacted over BRL 30 billion in the last 12 months, making up a credit portfolio of BRL 12 billion.

In late 2020, the company announced that it was acquiring Hub Fintech, a service platform for digital accounts and prepaid cards. With 4 million accounts and cards, Hub Fintech handled about BRL 7 billion in 2020.

After receiving Central Bank’s green light on the acquisition of Hub Fintech, the company plans to connect Magalu Pay, Hub Fintech and Luizacred, expanding the offer of digital financial services such as credit card, digital account, prepaid card, loans for individuals and companies, insurance and cashback all in the same environment: its super app.

Get the best insights about Latin America market in your inbox