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Koin launches marketplace to extend its "buy now, pay later" reach in 2023 in Brazil

December 26, 2022
Por
Fintechsbrasil
Fintechsbrasil
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Fintechsbrasil
The goal is to extend the reach of online credit without a credit card to customers of retailers who are not (yet) clients of the platform. BNPL stands for 'buy now, pay later'.
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The marketplace will give customers the ability to make installment purchases of products from different major sellers, either with BNPL, by credit card, or in cash, with PIX or boleto.

"We want to create a bond with customers, and offer an additional sales channel for partners," says Lucas Gonzalez, the company's director of products and strategy.

The executive says that the fintech established five years ago - and bought two years ago by Decolar.com's parent company in Argentina - has more than 500,000 customers in 500 partner stores.  

"The ease of integration with the merchants' checkout, without consumers needing to have a card or even a bank account, explains our growth. In the last three years, we have made R$700 million in credit at these checkouts; today, there are more than 20,000 transactions per month, at an average ticket of R$2,000," he says.

Despite being Argentinean, Gonzalez knows that the installment culture is strong in Brazil - which generates a favorable environment for BNPL's growth. The advantage over purchases made in installments with cards, according to him, are several: many Brazilians don't have a card, or have very low limits, around R$ 1.5 thousand; and when they make installments on the card and don't pay on time, which is very common, they incur in debts with very high interest rates.

"BNPL makes life easier for the customer and the stores, integrated to the check out without interfering in the customer's experience. It is the democratization of access to installment purchases."

Koin also recently launched an app to increase interaction with customers and give the option to installment without the fintech being at the checkout.

"We signed a partnership with Mastercard, which issues a single-use virtual credit card that expires in 24 hours," he explains. According to the executive, the credit analysis happens in seconds-if the customer is approved, the card is generated immediately.

The funding for Koin's financing comes basically from two sources: debentures and own resources. "Soon we will have a new alternative," says Gonzalez, without giving details.

Original Article in Fintechs Brasil

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 marketplace will give customers the ability to make installment purchases of products from different major sellers, either with BNPL, by credit card, or in cash, with PIX or boleto.

"We want to create a bond with customers, and offer an additional sales channel for partners," says Lucas Gonzalez, the company's director of products and strategy.

The executive says that the fintech established five years ago - and bought two years ago by Decolar.com's parent company in Argentina - has more than 500,000 customers in 500 partner stores.  

"The ease of integration with the merchants' checkout, without consumers needing to have a card or even a bank account, explains our growth. In the last three years, we have made R$700 million in credit at these checkouts; today, there are more than 20,000 transactions per month, at an average ticket of R$2,000," he says.

Despite being Argentinean, Gonzalez knows that the installment culture is strong in Brazil - which generates a favorable environment for BNPL's growth. The advantage over purchases made in installments with cards, according to him, are several: many Brazilians don't have a card, or have very low limits, around R$ 1.5 thousand; and when they make installments on the card and don't pay on time, which is very common, they incur in debts with very high interest rates.

"BNPL makes life easier for the customer and the stores, integrated to the check out without interfering in the customer's experience. It is the democratization of access to installment purchases."

Koin also recently launched an app to increase interaction with customers and give the option to installment without the fintech being at the checkout.

"We signed a partnership with Mastercard, which issues a single-use virtual credit card that expires in 24 hours," he explains. According to the executive, the credit analysis happens in seconds-if the customer is approved, the card is generated immediately.

The funding for Koin's financing comes basically from two sources: debentures and own resources. "Soon we will have a new alternative," says Gonzalez, without giving details.

Original Article in Fintechs Brasil

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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