RecargaPay, a mobile payment and wallet for Brazil, has received central bank approval to provide loans, according to a report by The Paypers on Wednesday (November 17).
To bolster its lending business, the Brazil-based company launched loan offers of BRL 40 million in the debt market in August, equivalent to about $ 7.2 million in US funds, according to the report. Loans approved by the Brazilian Central Bank are used to fund small loans to fintech customers. Borrowed funds start at BRL 10 – or $ 1.82 in US funds – with a repayment period of up to 90 days, the report said.
The credit announcement follows this week’s announcement that RecargaPay is offering “Buy Now, Pay Later” (BNPL) installment options for bills, according to a blog post on the company’s website.
RecargaPay was founded in 2010 with the aim of providing a lean and user-friendly financial services system that is accessible to everyone – including the estimated 45 million adults in Brazil who do not have a bank account, PYMNTS reported.
Originally, RecargaPay started out as a way for consumers to add money to their cell phone payment plans. At the time, founder and CEO Rodrigo Teijeiro told PYMNTS that the company had “only one website”.
Read more: Brazil’s RecargaPay raises $ 70 million to expand payment app
After RecargaPay had success with the cell phone top-off space, RecargaPay began looking into developing systems to address other consumer issues related to payments that could but were not digital, including purchasing from Public transit passes and credit card tapping to pay bills.
More recently, the company has expanded its scope to offer additional financial services, including the ability to send and receive money, pay bills, and deposit money into public transportation accounts. Users can also add funds to their RecargaPay digital wallet.
In February, the company raised $ 70 million in Series C funding for a total of more than $ 100 million. As PYMNTS reported, funds were earmarked to expand RecargaPay’s payment platform for consumers and small businesses.
Related news: RecargaPay: From mobile top-ups to the mobile financial services ecosystem