Delivery platforms are now going for the fintech business and joining the race to offer an app “for everything”. The keys
The competition to become the new “super app” in the region is underwaywith the landing of companies from various fields in the fintech universe. Especially virtual wallets.
Two examples are rappi and orders nowthat in recent years went from “simple” delivery apps to platforms that offer all kinds of services including, Of course, the financiers.
For some time now, the Colombian startup announced rappi bankfrom which it provides benefits of this type to businesses and consumers in Colombia, Mexico, Peru, Chile and Brazil. In addition, it received approval from the regulator to operate as a digital bank in Colombia, so the “deposit and savings products will be offered by the financial institution RappiPay“.
In the case of OrdersYa, is enabled in Argentina as a payment service provider by the Central Bank. From the signing they anticipate iProUP who advance to launch a visa card.
What are the financial services offered by Rappi?
When explaining the reasons that lead Rappi to venture into the fintech world, the company points to iProUP that “every initiative promoted in a market is part of a unified strategy that seeks to complete the cycle of consumption and offer financial services easily and with the best technology”.
“The strategies in each country are made independently and with teams, allies and mindset local. In each one, the corresponding regulations on financial services are contemplated,” they add. Although RappiBank did not arrive in Argentina, it is already available in the following markets:
- Mexico (in alliance with Banorte)
- Peru (Interbank)
- Brazil (Rappi Capital)
- Chile (Itau)
“In Colombia, the initiative stems from the 50/50 agreement with Davivienda bank: RappyPay aims to consolidate itself as a banking entity, with the endorsement of the Colombian Financial Superintendence,” they reveal.
Rappi is enabled in several countries in the region to offer financial services
The firm also highlights that growth has been exponential. In Colombia, RappiPay went from having more than 50,000 credit cards in 2020 to 150,000 in December. “We currently have almost 200,000 credit cards issued and we plan to close the year with more than 500,000an increase of 65% year-on-year”, they point out.
The Colombian startup reveals: “With more than 800,000 clients, RappiPay is the largest fintech in Colombia and achieved in record time guarantee to operate as a financial institutionthus breaking schemes with technology and leveraging the power of the Rappi ecosystem”.
Another case that stands out is what happened in Mexico: “Rappi and Banorte launched the RappiCard at the end of January 2021. Since then, it has become the second most issued credit card in the last year in Mexico, with 570,000 plastics“.
What are the financial services that OrdensYa offers?
Guillermo Stockdale, Fintech Sr Director of OrdenesYa, indicates to iProUP what the company is actively entering the fintech world for the 15 countries of Latin America : “We have one alliance with Visa to foster financial and digital inclusion and accelerate the shift from cash usage to digital payment experiences for consumers, couriers and business partners.”
Stockdale maintains that Orders Now Payments is the brand under which the online transaction solution is provided in the app and allows “paying with credit and debit cards, among other means”.
Explaining what the projects are to move towards the fintech world, Stockdale remarks: “We seek improve the user experience by promoting better benefitsfocusing on restaurants and shops.
OrdensYa signed an alliance with Visa to offer new financial services in the region
“We are working on the launch of Visa credit cardsthat will facilitate access to financial services, with a 100% digital experience within the app. Customers will be able to take it out in a few minutes and pay immediately both in the app and in any ecommerce store,” adds Stockdale.
The executive anticipates that also a physical plastic will be delivered to access “special benefits at any time”although in the first instance they will test the service in Panama.
Why do Rappi and OrdensYa seek to be financial?
Information on consumption and tastes of your customers is one of the most precious assets of a company to offer its services. That is something that delivery apps have.
“The more I know them, the better the proposal that I can bring. Delivery apps have data from businesses, delivery people and consumers: they can do bespoke offerings for everyone,” he points out iProUP Juan José Lanzarotti, co-founder of Tirr, a free platform that provides financial education tools, and adds: “Talking about applications is talking about databases“.
Ignacio E. Carballo, specialist in Financial Inclusion and Technological Finance, reveals to iProUP other motivation: “In Latin America, progress is being made and competing for the model of super app. In developed economies or with much more mature digital sectors, these spaces have already been covered: Paypal and Amazon in the US; WeChat and Alipay in China”.
He adds that “Latin America is still in that race: today there is no great wallet that meets all the needs financial and non-financial, which is what defines a super app“.
“For this reason, within the fintech world it is moving towards that scheme: in Argentina we see it with Mercado Pago, but there are other cases in the region“, adds Carballo. In his vision, “the model is quite traditional, even theoretical and studied in universities. WeChat was a messaging app, while Paypal was born as an ecommerce payment platform.”
“At the end of the day, the key is to have everything in one place and that the entire digital life of a person is served in the same app. Not only the financial part, but also their consumption of digital content, streaming, video games, e-commerce, delivery, etc. “, he underlines.
When referring to the impact that the landing of large companies “of another suit” in the fintech worldCarballo points out that “this implies greater competition and dynamism by the offer. In the end, that results in better quality of services and greater investment in innovation. For consumers, it’s very good.”
In the case of fintech, the economist points out that “they will have to compete and know how to differentiate themselves in a more difficult scenario.
“In fact, it does not affect them too much because those companies are also going there. But, without a doubt, those that offer only one service will have it more complicatedbecause as competition increases, they will need to differentiate themselves by offering something different,” concludes Carballo.