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RecargaPay receives endorsement from Brazilian Central Bank to expand its credit offer

February 7, 2022
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The application was born as a digital 'wallet', with only the recharge functionality
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RecargaPay, a payment and financial services application, obtained another authorization from the Central Bank (BC). Four months after receiving approval from the regulator to operate as a Direct Credit Society (SCD), the company will now also be able to act as a Payment Institution (IP).

As reported this Friday afternoon, the fintech will be able to operate as an IP in the electronic currency issuer modality, which allows an institution to manage prepaid payment accounts. In this way, the platform will be able to access other systems inherent to the National Financial System (SFN).

In a note, Gustavo Victorica, COO and co-founder of RecargaPay, says that, with this, the platform intends to further integrate the other areas of its ecosystem. The application already makes it possible to make payments including Pix, mobile recharges or transport cards, bill payments, gift cards, microcredit or loan requests, and prepaid cards.

“The license is yet another milestone that reinforces our growth and commitment to using technology as a financial facilitator for the population”, comments Gustavo.

In other words, with both licenses, RecargaPay expects to gain autonomy and expand its credit offer, as well as being able to offer new solutions to its customers.

Founded in 2010, the app was born as a digital 'wallet', with only the recharge functionality. Today, in addition to the service, the platform operates on other fronts, such as microcredit.

In August, it debuted in the debt market with a R$40 million debenture, structured by the securitization company Vert Capital and the manager Milenio (which also invested in the issuance).

In October last year, RecargaPay announced a funding of US$ 10 million — the majority (US$ 7.5 million) contributed by IDB Invest, a member of the IDB Group, and the remainder (US$ 2.5 million) invested by IDC Ventures and Fuel Venture Capital.

The check was an extension of the Series C announced in March 2021. With that, the round totaled US$ 80 million.

Among RecargaPay’s main competitors are companies such as PicPay – which has been reinforcing its high ranking to grow this year and surpass its 60 million current customers – and Mercado Pago – which has been betting on new fronts to expand, such as the option to negotiate cryptocurrencies in your digital wallet.

Notice on Finsiders

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.

RecargaPay, a payment and financial services application, obtained another authorization from the Central Bank (BC). Four months after receiving approval from the regulator to operate as a Direct Credit Society (SCD), the company will now also be able to act as a Payment Institution (IP).

As reported this Friday afternoon, the fintech will be able to operate as an IP in the electronic currency issuer modality, which allows an institution to manage prepaid payment accounts. In this way, the platform will be able to access other systems inherent to the National Financial System (SFN).

In a note, Gustavo Victorica, COO and co-founder of RecargaPay, says that, with this, the platform intends to further integrate the other areas of its ecosystem. The application already makes it possible to make payments including Pix, mobile recharges or transport cards, bill payments, gift cards, microcredit or loan requests, and prepaid cards.

“The license is yet another milestone that reinforces our growth and commitment to using technology as a financial facilitator for the population”, comments Gustavo.

In other words, with both licenses, RecargaPay expects to gain autonomy and expand its credit offer, as well as being able to offer new solutions to its customers.

Founded in 2010, the app was born as a digital 'wallet', with only the recharge functionality. Today, in addition to the service, the platform operates on other fronts, such as microcredit.

In August, it debuted in the debt market with a R$40 million debenture, structured by the securitization company Vert Capital and the manager Milenio (which also invested in the issuance).

In October last year, RecargaPay announced a funding of US$ 10 million — the majority (US$ 7.5 million) contributed by IDB Invest, a member of the IDB Group, and the remainder (US$ 2.5 million) invested by IDC Ventures and Fuel Venture Capital.

The check was an extension of the Series C announced in March 2021. With that, the round totaled US$ 80 million.

Among RecargaPay’s main competitors are companies such as PicPay – which has been reinforcing its high ranking to grow this year and surpass its 60 million current customers – and Mercado Pago – which has been betting on new fronts to expand, such as the option to negotiate cryptocurrencies in your digital wallet.

Notice on Finsiders

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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