RecargaPay Authorized to Offer Loans

RecargaPay, a mobile payments and wallet for Brazil, has received authorization from the central bank to provide loans, according to a Wednesday (Nov. 17) report from The Paypers.

In a move to bolster its loan operation, the Brazilian-based company launched in the debt market in August with loan offerings of BRL 40 million, which equates to about $7.2 million in U.S. funds, according to the report. Loans authorized by Brazil’s Central Bank will be used to finance small loans to Fintech customers. Funds borrowed start at BRL 10 – or $1.82 in U.S. funds – with a repayment term of up to 90 days, according to the report.

The loan announcement comes on the heels of this week’s announcement that RecargaPay is offering buy now, pay later (BNPL) installment payment options for bills, according to a blog post on the company’s website.

RecargaPay was founded in 2010 with the goal of offering a streamlined and user-friendly financial services system that would be accessible to everyone – including the estimated 45 million adults in Brazil who do not have a bank account, as PYMNTS reported.

Initially, RecargaPay began as a way for consumers to add funds to their cell phone payment plans. At the time, Founder and CEO Rodrigo Teijeiro told PYMNTS that the company operated “just a website.”

Read more: Brazil’s RecargaPay Raises $70M to Expand Payments App

After finding success with the cell phone top-off realm, RecargaPay began looking at devising systems to address other consumer pain points related to payments that could be digital but were not, including buying public transportation passes and tapping credit cards to pay bills.

More recently, the company has broadened its scope to provide additional financial services, including the ability to send and receive money, pay bills and add funds to public transit accounts. Users can also add funds to their RecargaPay digital wallet.

In February, the company notched $70 million in Series C funding for a total of more than $100 million raised. Funds were earmarked for RecargaPay’s payments platform expansion for consumers and small businesses, as PYMNTS reported.

Related news: RecargaPay: From Mobile Top-Ups to Mobile Financial Services Ecosystem