Magazine Luiza Focuses on Advancing Its Digital Payment Sector

RIO DE JANEIRO, BRAZIL – On Monday, July 6th, Magazine Luiza announced the addition of Robson Dantas to lead the company’s fintechs team. He is taking over the position with the goal of developing payment tools and turning the retailer into one of the main players in the segment.

In 2008, Dantas founded the startup Vale Presente, which became the largest prepaid card issuer in Latin America and was considered by Mastercard one of the most innovative companies in the world.

The executive will expedite the Magalu Pay project, the company’s digital wallet launched in January this year, which allows payments through the app and transfer of amounts, and will incorporate the digital account with the advantages of the Cartão Luiza (Luiza Card).

Dantas has experience in technology and product management. Over the past 15 years, he has been involved in the development of different products and technologies for the fintech ecosystem in Brazil, several Latin American countries, and the USA.

“Magalu is the main purchasing and sales platform in the country, and having a strong fintech arm is crucial to the business. We will leverage the company’s strengths as a large number of customers and partners to develop products that will be market leaders in Brazil,” said Dantas.

The entrance of the executive and the boost in the fintech area amid the crisis reinforce the retailer’s strategy in the digital innovation segment.

Luiza Trajano, chair of Magazine Luiza’s Board of Directors, recently stated the area’s importance – in addition to customer service. “Digital is an experimental culture. Try it, it didn’t work? It changes fast and if it’s right, it multiplies. Innovation and [good] service are the only things that will differentiate a business. And there’s no way to innovate without digital.”

In a completely atypical year with the coming of the coronavirus pandemic, the retailer faced challenges, but benefited from the surge in e-commerce demand. The company recorded a seven percent increase in total sales in April, as well as 138 percent growth in its online operation in April and 203 percent up to May 20th.

Payment institution

In the first quarter of 2020, Magazine Luiza reached the R$500 million mark in the total volume of payments and took a further step in its trajectory: it applied to the Central Bank to become a regulated financial payment institution.

Source: InfoMoney