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.

Related coverage: TransferWise suspends international remittance service from Brazil · Japan finds new COVID-19 strain, while immigration center reports infections · Officials involved in Peru's "Vaccinegate" scandal could face jail terms – human rights activist · Despite lower mortality, Brazil´s Northeast expects Covid-19 new strain surge

More: Brazil news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error

Brazil runoff, Sunday, October 25: Brazil runoff: date, poll closing times and when results start. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.