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Brazilian Digital Bank PicPay enters credit with vehicle collateral

May 24, 2023
Por
Finsiders
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In a new move to expand its portfolio of products and services, the super app PicPay has just launched a type of credit with vehicle collateral, known in the market as 'car equity'.
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The line will be offered in partnership with Creditas, a secured credit fintech, which also has an agreement with Nubank to offer this product in the digital bank's app.

To contract the loan, which can vary from R$5,000 to R$150,000, the vehicle must be up to 15 years old and can be sold at a rate of up to 90%. The deadline for the beginning of the payment is 60 days and the rates start at 1.49% a month.

"With the launch, we increase the credit offer, diversify the products available to millions of users and corroborate our purpose of making people's lives easier," said Danilo Caffaro, PicPay's VP of financial services for individuals, in a statement.

This is not the super app's first foray into secured credit lines. In April, for example, PicPay started offering public consigned credit on the app through BX Blue, a marketplace the company bought in February. About a year ago, the fintech also started offering FGTS anticipation.


Diversification

The entry of the super app in the credit with vehicle warranty is another step in the business diversification movement, a fundamental strategy in an adverse context for technology companies, including fintechs.

With 30 million monthly active users, PicPay recorded its first profit in the fourth quarter of 2022, with a positive result of R$ 20.4 million in the period. In the year-to-date, however, the company had losses of R$693 million.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

The line will be offered in partnership with Creditas, a secured credit fintech, which also has an agreement with Nubank to offer this product in the digital bank's app.

To contract the loan, which can vary from R$5,000 to R$150,000, the vehicle must be up to 15 years old and can be sold at a rate of up to 90%. The deadline for the beginning of the payment is 60 days and the rates start at 1.49% a month.

"With the launch, we increase the credit offer, diversify the products available to millions of users and corroborate our purpose of making people's lives easier," said Danilo Caffaro, PicPay's VP of financial services for individuals, in a statement.

This is not the super app's first foray into secured credit lines. In April, for example, PicPay started offering public consigned credit on the app through BX Blue, a marketplace the company bought in February. About a year ago, the fintech also started offering FGTS anticipation.


Diversification

The entry of the super app in the credit with vehicle warranty is another step in the business diversification movement, a fundamental strategy in an adverse context for technology companies, including fintechs.

With 30 million monthly active users, PicPay recorded its first profit in the fourth quarter of 2022, with a positive result of R$ 20.4 million in the period. In the year-to-date, however, the company had losses of R$693 million.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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