Brazil’s Nubank confirms 12-month installment plan for purchases using its card
RIO DE JANEIRO, BRAZIL – The fintech’s new service allows users to choose any purchase made through the institution’s credit card to be paid in up to 12 installments.
Latin America’s largest fintech, São Paulo-based, Nubank has unveiled another new feature for its Brazilian customers. According to the financial institution’s information, this tool allows credit card users to pay specific purchases in installments rather than the total amount of the invoice.
The new service allows users to choose any purchase made through the institution’s credit card to be paid in up to 12 installments, provided that the minimum amount corresponds to R$20 for each month. The interest charged is lower in relation to the rates for revolving credit.
The tool is an advantage for customers wishing to lower the total value of the invoice, as well as to install purchases that were not divided at the time of payment with the card. In this respect, purchases made abroad can be divided into installments – which is not typically done.
According to the digital bank, the sum of fees charged for installment payments for individual purchases is lower when compared to the total cost of revolving credit. However, in cases where a purchase costs R$75 at sight, and the customer chooses to divide into 9 equal installments of R$10.27, an interest rate of 4% per month was added, plus IOF to make up the final amount (the value was below the minimum of R$20).
The new feature is only available for some Nubank users. There are no plans to expand this service or generalize it to all customers.
Product expansion
In February, Nubank launched two new products, the first in its own product and the second in a service for its clients. Now, the institution’s card is compatible with the Google Pay digital wallet. Since 2016, with the launch of Samsung Pay in Brazil, the digital bank has been trying to enter this mode.
In addition, the fintech has launched a kind of prepaid card. The customer deposits into his account the limit amount he wants on the credit card, which is automatically available for purchases of any purpose, such as for subscriptions, cash and installment purchases. The amount that has been deposited in the account will be retained until the invoice is due.
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