Amazon announced the beginning of cooperation with the Brazilian bank Banco Bradesco.
For the giant of e-commerce, this partnership is important as part of the implementation of its intention to launch a credit card in Brazil. The launch of the payment means is scheduled for August. The corresponding information was reported to media representatives by the Director General of the financial institution Octavio de Lazari Jr.
This is the latest application of the e-commerce giant to expand opportunities in the field of fintech. Banco Bradesco will be responsible for the credit risk of the card that will be operated by Mastercard.
This summer, Amazon teamed up with YouLend as part of a project to provide British small businesses with assistance in obtaining financing during difficult credit conditions. As a result of the cooperation of the e-commerce giant and the built-in financial platform, sellers can receive cash advances tied to their sales. Also, merchants have the opportunity to make payments as they arrive.
Amazon’s press release, published on the occasion of its interaction with YouLend, contains information that the revenue-based financing model provides that sellers will have the opportunity to develop their business and increase inventory, expand marketing, and buy new equipment while guaranteeing transparent and limited rates. Also, in this case, repayment is guaranteed based on current sales.
This year, the Amazon Pay team, together with Citi, launched a financial solution in which card users have the opportunity to pay in installments. Omar Soudodi, director of Amazon Pay, said that customers need flexible payment methods, and sellers want to meet this need but do not always have the necessary resource base for this. He also noted that the partnership is a win-win for all participants in the commercial process. According to him, customers get a new convenient way to pay for their purchases, and sellers can freely offer them more choice, affordability, and flexibility in payment methods.
The collaboration with Citi followed the debut of the Amazon Pay express payment system, which was created to give sellers faster access to working capital of up to $1 million. Omar Soudodi says that this system allows merchants to take advantage of their sales and cope with the emergency costs of expanding business in an unstable economic climate, for which changes are a constant characteristic.
The August launch of the e-commerce giant’s credit card will take place a few months after the news that 40% of consumers in this country are facing the problem of default amid the continuing growth in debt.