Bloomberg Línea — Brazil-based Nubank and Ebanx, a fintech that has received funding from Advent International, have entered into a partnership to offer NuPay as a payment method for international purchases.
The deal will enable more than 1,600 international companies that are Ebanx customers, such as Airbnb, Spotify and Uber, to accept payments directly through Nubank, initially for Brazilian customers.
The partnership will enable Nubank to strengthen its marketplace and payment methods business vertical, which is expected to reinforce the app’s recurring usage by customers and the average payment size.
NuPay allows local or international e-commerce platforms to offer alternative payment methods (beyond credit and debit cards, which are traditional in this industry) and installment payments. According to Ebanx, in the past five months, Brazil’s instant payment system Pix accounted for over 42% of the company’s total processing volume.
Alternative payment methods, which consider other electronic modalities apart from cards, accounted for nearly 40% of the total online transactions in Latin America in 2022, according to the Beyond Borders study conducted by Ebanx last year.
In an analysis published in 2022, Americas Market Intelligence (AMI) predicted a 25% growth in e-commerce volume in Latin America to $700 billion between 2021 and 2025. According to AMI, in 2021, the Brazilian e-commerce market was worth $153 billion.
It is in this context that Brazilian fintechs are seeking partnerships to incorporate alternative payments. Earlier this year, the Brazilian Central Bank authorized Ebanx to offer a payment initiator service through Pix, which extends to merchants using the fintech’s solutions.
These merchants can manage Pix on their online platforms without buyers needing to access banking institution apps to make payments. In June, Nubank also announced that it had completed all integration steps to become a payment initiator.