Claro Prepares to Join Brazil’s Financial System

RIO DE JANEIRO, BRAZIL – In the wave of open banking and the launching of PIX, the Central Bank’s digital payment system, several telecom companies are developing their own financial products.

Sources in the market have reported that Claro is preparing to launch a new group company in November or December that will offer financial products.

Currently, Claro already offers cell phone credit top-up products, but the goal is to expand the credit offer and develop a PicPay-style payment system.

“Initially, it will be aimed at selling the company’s telecommunication products and those of its partners, but later it may be opened to other products,” says an employee on condition of anonymity.

Moreover, with its own payment services company, Claro will consequently be in a position to reduce the costs and percentages that are directed to outsourced intermediaries, the so-called payment gateways.

The fintech will target Claro’s clients who are unable to have bank accounts for not having a permanent income or proof of residence. Currently, these clients are connected to the company through telephone lines and cell phone top-up services.

Last year, Claro attempted to develop a credit platform of up to R$10,000 (US$2,000) through a partnership with Inbursa S.A. However, the App named Claro SmartCred was unable to be launched due to obstacles in Central Bank rules.

The new attempt seeks to use the Central Bank’s Agenda, which is currently on the path of digitalizing and democratizing the financial market. This step is in line with Vivo Telecom’s business expansion, which has just launched Vivo Money among its new products.

A partnership between Vivo and Ibi Promotora de Vendas Ltd., banking correspondent of Banco Digio S.A., the new product offers loans of up to R$30,000. In its implementation stage, the platform is open only to registered clients and has created a waiting list.

“The opportunities are many, in several economic areas, both for individuals as well as small and large-scale companies,” said Christian Gebara, Vivo’s CEO, during an online conference promoted this month by Everis business and IT consulting firm.

Source: Veja

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