Fintech
Vivo Advances Fintech Operations, Announces New Credit Services
From Telefonica Brazil (I live)
This is an automatic translation of the original press release issued in Portuguese.
San Paolo, July 2024 – Vivo advances its operations as a fintech and announces two new credit products: PIX installment and FGTS anniversary withdrawal anticipation, which contribute to expanding the credit offer and financial inclusion of Brazilians. The strategy is part of the company’s corporate positioning, which seeks to be recognized as a technology company that operates beyond connectivity.
“In this vision, the financial services area was one of the first in which we began to operate and, therefore, it is one of the most mature both in terms of business evolution and services, which makes us confident to move forward with new offerings in the credit area,” says Leandro Coelho, director of Vivo Fintech.
The two new features announced today are in addition to the personal loan service that has been operational since 2020 and allows for loans of R$ 500 to R$ 50,000, as well as being an alternative to financing smartphones and other devices purchased in company stores. With a growing performance, Vivo’s personal loans totaled R$ 420 million in portfolio in the first quarter of 2024, almost double compared to the same period of the previous year. The service records more than 55,000 credit agreements and revenues of more than R$ 100 million in 2023.
Considering the 12 months between March 2024 and March 2023, Vivo’s revenue from financial services grew by 29.4%, totaling R$ 425 million. In addition to personal loans, Vivo’s fintech portfolio includes insurance – for mobile phones and other devices, such as tablets and notebooks – the company has about 500,000 insured smartphones. There is also the “planned purchase”, a smartphone consortium launched in partnership with the startup Klubi, which allows the purchase of a device in up to 36 fixed installments, in a planned manner.
Vivo Pay: One brand
The two new credit services are the pillars of Vivo’s strategy for this vertical in 2024. The company has requested a license from the Central Bank of Brazil to act as a Direct Credit Society (SCD), aiming to have greater flexibility to offer new services and reduce costs. Vivo currently adopts the banking-as-a-service model, with partners providing complete solutions so that the brand can operate in the fintech segment. The idea is for the two models to coexist.
Vivo’s plans to advance in the fintech market also include the unification of its services under the Vivo Pay brand, the company’s financial solutions platform, and the unification of access to services through the Vivo app, which is already underway. The goal is to leverage the potential of the application, which has over 22 million unique users and is the main channel for customer interaction with the company.
The first service to be created in this way is Pix installments, presented on the Vivo app for eligible customers. This is a payment method that allows you to split purchases made with Pix over up to 12 months, making it an alternative for those who don’t have a credit card, don’t want to compromise their limit, or need credit to make purchases at stores or service providers that don’t offer installments. The customer pays the loan installments in a unique invoice generated in the Vivo app.
The FGTS Anniversary Withdrawal Advance is a modality that has been widely tested in the market and that Vivo is starting to offer to eligible customers. It is a loan that uses the resources of the Anniversary Withdrawal from the Severance Indemnity Fund in active or inactive accounts with a positive balance. In the case of Vivo, it is possible to withdraw from R$ 500 and advance the amount up to 10 years of the available balance. All Vivo Pay products are available on the website: www.vivopay.com.br/fgts and also in the Vivo Pay tab, in the Vivo app.