Brazil’s Magazine Luiza launches fintech with personal loans and credit cards for businesses

RIO DE JANEIRO, BRAZIL – On May 12, Magazine Luiza (MGLU3) officially launched Fintech Magalu. According to the company, the fintech is already one of the ten largest in Brazil, with more than 16 million unique customers among individuals and companies.

The company highlighted in a statement that the arrival of the Fintech Magalu brand in the market happened together with the launch of two products – the credit card for businesses, focused on the company’s more than 160,000 sellers, and the credit for individuals offered directly in Magalu’s SuperApp.

“Fintech Magalu is a business with high growth potential,” says Robson Dantas, the company’s director. “More important than that, however, is being fully connected to Magalu’s mission to digitize Brazilian retailers, especially small and medium-sized ones.”

Magalu estimates that only 3% of the Brazilian credit card base is corporate. According to Dantas, the great advantage of Magalu’s fintech in granting this type of credit is the sellers’ deep knowledge, which broadens the market and reduces risks.

The amount of credit offered to each client is calculated based on the analysis of the consumer’s profile. Currently, 45 million people use the SuperApp every month, says the company. To make the operation, the client requests the loan through the app, the profile is analyzed, and the amount is released directly into MagaluPay, Magalu’s digital account, which can be used for any payment.

“We have already pre-approved credit for 10 million customers in our base based on a careful risk analysis,” said the executive.

Fintech Magalu’s enterprise credit card is in the pre-launch phase. According to the company, interested sellers can sign up for the waiting list through an invitation, which will be sent out in the coming days by Magalu. Holders of the business credit card will be part of an exclusive benefits program, which will entitle them to accumulate and exchange points for services offered in the Magalu ecosystem.

Magalu Fintech is the result of the integration of Bit55, Stoq, and Hub Fintech, acquired in late 2020, adding the Luizacred operation. In 2021, the total transaction volume (TPV) processed by Fintech Magalu totaled R$65 billion (US$13 billion) – which considers the individual credit card operation in the partnership with Luizacred, the marketplace sub-acquirer and other financial services (Banking as a Service) provided to several companies.

On the front of the business-oriented product, Fintech Magalu is responsible, for example, for the payment operation to truckers and carriers of CargoX. “Fintech Magalu does not work exclusively for our ecosystem,” says Dantas. “We are already a reference in providing financial services to more than 50 companies of all sizes.”

With information from InfoMoney

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