Brazil´s Nubank launches credit card focused on unbanked or blacklisted people

RIO DE JANEIRO, BRAZIL – On Thursday, February 18th, Brazilian Nubank, Latin America´s largest Fintech, announced the launch of a new credit card. The product is designed for unbanked people and on the blacklist of defaulters. The card enables setting a limit for purchases on credit, while offering customers the chance to build a credit history with the institution. The new method is still in its beta phase (test phase) and available only to invited clients.

“Brazil currently has over 60 million people who are unable to be approved for a traditional credit product because they have no history or their name is ‘blacklisted’ in the main credit reporting agencies and existing public data sources,” says Cristina Junqueira, Nubank’s cofounder.

She explains that the proposal is to offer the new card as a gateway to this public and encourage financial inclusion. A survey conducted by the fintech with its own clients pointed out that approximately 20% had never had a credit card in their lives.

“For many Brazilians, this may be their first experience with a product like a conventional credit card, which allows purchases at any type of establishment, in person or online.”

The new card model is a simple payment tool with access to the main advantages provided by a traditional credit card, such as online purchases and subscriptions, or at any type of physical establishment, as well as the option of paying in installments.

Transfer

To begin using the product, users only need to make a transfer of any amount from their Nubank digital account (Nuconta) to the card and the amount will automatically become the credit limit available for purchases.

When using this limit, the amount is retained by Nubank until the customer pays his/her bill. Unlike similar solutions, such as prepaid cards, the amount added as a limit which is not used can be redeemed at any time.

Nubank did not indicate what interest or other charges it would make to card holders.

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