RecargaPay, a mobile payment and wallet for Brazil, has received authorization from the central bank to grant loans, according to a report published on Wednesday (November 17) by The Paypers.
In an effort to bolster its lending operation, the Brazilian company entered the debt market in August with loan offers of BRL 40 million, which is equivalent to around $ 7.2 million in US funds. , according to the report. The loans authorized by the Central Bank of Brazil will be used to finance small loans to Fintech clients. Borrowed funds start at 10 BRL – or $ 1.82 in US dollars – with a repayment term of up to 90 days, according to the report.
The loan announcement follows this week’s announcement that RecargaPay offers buy now, pay later (BNPL) installment payment options for bills, according to a blog post on the company’s website.
RecargaPay was founded in 2010 with the aim of offering a simplified and user-friendly financial services system that would be accessible to everyone, including the approximately 45 million adults in Brazil who do not have a bank account, as the reported PYMNTS.
Initially, RecargaPay started out as a way for consumers to add funds to their cell phone payment plans. At the time, founder and CEO Rodrigo Teijeiro told PYMNTS that the company was operating “just a website.”
Read more: Brazilian RecargaPay raises $ 70 million to expand payment app
After finding success in the cellphone arena, RecargaPay began to consider designing systems to solve other consumer issues related to payments that might be digital but were not, including purchasing passes. switch to public transportation and the use of credit cards to pay bills.
More recently, the company has broadened its reach to provide additional financial services, including the ability to send and receive money, pay bills, and add funds to transit accounts. . Users can also add funds to their RecargaPay digital wallet.
In February, the company secured $ 70 million in Series C funding for a total of more than $ 100 million raised. Funds have been earmarked for the expansion of RecargaPay’s payment platform for consumers and small businesses, as PYMNTS reported.
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