LatamList – Nubank, the Brazilian neobank, partnered with PayPal to provide interest free payments rates for credit card users in Mexico. The move is intended to capitalize on the increasing number of e-commerce transactions in the country.
Due to the global pandemic, there has been a significant increase in e-commerce payments. Nubank recorded an increase from 6.4% to 12.3% in credit card payments in supermarkets and convenience stores.
Nubank launched its credit card in Mexico in March with 130,000 customer requests. The platform also reached 25 million customers worldwide in June.
In partnering with PayPal, Nubank will offer not only interest-free months, but also facilitate e-commerce for Nu card holders with companies on the PayPal platform. Unlike traditional credit cards, the Nu card allows customers to increase their monthly payments or pay in advance.
Nubank is offering a reward for early debt settlement or increased monthly payments, such as a discount on the total monthly payment. The neobank launched a similar initiative with Amazon in July offering discounts on the platform.
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