- The neobank unveils new services, available first to its highest-spending customers
- It will allow this segment of users to make instant currency acquisitions, through the app and without transferring money between accounts
In a strategic move to expand its service offerings and compete more strongly in the fintech sector, Nubank, the leading neobank in Brazil, has announced a partnership with international payments platform Wise.
The main objective of this collaboration is to launch a global account associated with a debit card, which aims to make transactions made abroad by its customers easier and cheaper.
The new global account will initially be available to Ultraviolet customers, the highest-spending segment of Nubank’s clientele. This exclusive category is characterized by offering personalized benefits and services to users who interact most with the platform.
According to official information from Nubank, the global account will offer a currency conversion fee of 0.9%, (the lowest in the current Brazilian market). Additionally, the entity will subsidize the tax on foreign exchange transactions (IOF), allowing customers to pay a rate of 1.1%, instead of the 4.38% established by the fiscal authorities.
Another innovative benefit of the Nubank Global Account is that it provides free internet service for international travel. With the purchase of the product, Ultraviolet customers have access to the internet in more than 40 countries, through a virtual SIM card.
The travel segment represents an opportunity to offer very profitable financial products and services, as we reported a few weeks ago in Frecuencia Money in our report on banking for travelers.
Competition in the fintech landscape
With this launch, Nubank seeks to consolidate its leadership position in the Brazilian market and compete directly with other fintech companies, and traditional banks such as Banco do Brasil, which have also implemented IOF subsidy strategies on international purchases.
Nubank, the first digital bank in Brazil, has a base of 94 million customers in the country and closed 2023 with a net profit of 1 billion dollars.
After its successful growth in the Brazilian market, the company has expanded its operations to Mexico and Colombia, consolidating itself as a relevant player in the Latin American financial industry.
Nubank’s latest moves
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Expansion to Colombia In March 2024, Nubank announced its arrival in Colombia, offering its Nu credit card and a digital account to Colombian citizens.
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Partnership with Visa In February 2024, Nubank signed an agreement with Visa to expand the acceptance of its credit card worldwide.
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Investments in technology The fintech has been investing heavily in the development of new technologies, such as artificial intelligence and machine learning, to improve the customer experience and optimize its operations.
