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Paytech Broad announces its arrival in Brazil with a solution to access international financial services

June 28, 2022
Por
Bloomberg línea
Bloomberg línea
Multiplataforma de noticias empresariales
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LinkedIn
Broad is betting on a digital account in pounds, euros and dollars for Brazilians abroad and will be up against players such as Wise, Nomad, C6 Bank, Nomad and Avenue
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The more adverse market for startups does not mean there is no room for newcomers. This is the case of Marcos Pileggi Filho, CEO of Broad, a fintech for international payments that was accelerated by Y Combinator and launches its products in Brazil this Monday.

The goal: “to solve the problem of traveling with a fanny pack,” Pileggi, a lawyer specializing in business law with a master's degree in management from London Business School, told Bloomberg Linea.

"Brazilians still resort a lot to conventional means like the exchange house to take money out and travel with that fanny pack, which is a horrible experience. Sometimes you don't know how to count the change [in foreign currency], you're afraid of losing the fanny pack and the savings you've put together to fulfill the dream of going somewhere else," he said.

The entrepreneur joined Juliano Alves (CTO, or Chief Technology Officer) to found the digital player, which aims to reach all of Latin America, starting with Brazil. Alves has worked in international financial companies such as CapitalOne and Wise.

Besides the traditional exchange houses and services offered by digital banks - such as C6 Bank and Nubank - and incumbents such as Itaú Unibanco (ITUB4), Wise (ex-Transferwise) is precisely one of the players Broad will compete with in Brazil.

Other competitors are Nomad and Avenue Securities, startups that bring more competition and seek to offer cheaper spread rates to the foreign exchange market.

Broad's debit card, which can be virtual or physical, has the Mastercard flag and works "like a local" in the three currencies, but also allows purchases in any currency - doing the conversion at the time of purchase. Pileggi says that the startup is also seeking integration with Google and Apple Pay.

As of this Monday, customers can download the app for iOS or Android and create the account, which, like other digital banks, charges no administration or maintenance fees.

Remittances can be made to Broad's account through Pix. The fintech charges IOF (Tax on Financial Transactions) of 1.1%. Broad is remunerated by an exchange spread of up to 2% over the commercial exchange rate of the currencies, in addition to the interchange fee charged by the establishments that accept the card.

The startup's focus is on people who travel for tourism, who spend money on international sites, and who want to have reserves in other currencies to protect themselves from currency devaluation.

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 more adverse market for startups does not mean there is no room for newcomers. This is the case of Marcos Pileggi Filho, CEO of Broad, a fintech for international payments that was accelerated by Y Combinator and launches its products in Brazil this Monday.

The goal: “to solve the problem of traveling with a fanny pack,” Pileggi, a lawyer specializing in business law with a master's degree in management from London Business School, told Bloomberg Linea.

"Brazilians still resort a lot to conventional means like the exchange house to take money out and travel with that fanny pack, which is a horrible experience. Sometimes you don't know how to count the change [in foreign currency], you're afraid of losing the fanny pack and the savings you've put together to fulfill the dream of going somewhere else," he said.

The entrepreneur joined Juliano Alves (CTO, or Chief Technology Officer) to found the digital player, which aims to reach all of Latin America, starting with Brazil. Alves has worked in international financial companies such as CapitalOne and Wise.

Besides the traditional exchange houses and services offered by digital banks - such as C6 Bank and Nubank - and incumbents such as Itaú Unibanco (ITUB4), Wise (ex-Transferwise) is precisely one of the players Broad will compete with in Brazil.

Other competitors are Nomad and Avenue Securities, startups that bring more competition and seek to offer cheaper spread rates to the foreign exchange market.

Broad's debit card, which can be virtual or physical, has the Mastercard flag and works "like a local" in the three currencies, but also allows purchases in any currency - doing the conversion at the time of purchase. Pileggi says that the startup is also seeking integration with Google and Apple Pay.

As of this Monday, customers can download the app for iOS or Android and create the account, which, like other digital banks, charges no administration or maintenance fees.

Remittances can be made to Broad's account through Pix. The fintech charges IOF (Tax on Financial Transactions) of 1.1%. Broad is remunerated by an exchange spread of up to 2% over the commercial exchange rate of the currencies, in addition to the interchange fee charged by the establishments that accept the card.

The startup's focus is on people who travel for tourism, who spend money on international sites, and who want to have reserves in other currencies to protect themselves from currency devaluation.

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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