Reuters reports that Nubank – which provides a free-of-charge credit card along with bank accounts, small business services and individual credit – aims to offer interest rates at 30% to 40% below the normal market rate for Brazilian banks, which typically offer credit cards with 400% APR.
Founder and CEO David Vélez said that 10 million of Nubank’s clients are holders of its credit card. “We have opened many new business fronts in the last 12 months [and] we are growing quickly.”
The announcement comes just three months after the company raised $400 million in a funding round led by TCV.
Founded in 2013 and now valued at $10 billion, Nubank also operates in Argentina and Mexico. Vélez said that operations in the latter country will be accelerated in the coming weeks.
This summer there were also speculations about potential expansion into Colombia, but this has not been confirmed by Nubank.
Founded in 2013, Nubank offers a Mastercard credit card with a companion mobile app that features PFM capabilities, spending alerts, and a card-lock feature.
Nubank Co-founder and CTO Edward Wible, along with Lucas Cavalcanti, lead software engineer, showcased at FinDEVr New York 2016 in a presentation titled Our Money, Our Rulebook, which explored how Nubank deals with real-time, double-entry accounting on a per-customer basis.