Vivo obtains license to operate as a credit fintech

This is a machine translation of a press release by Telefônica Brasil

São Paulo, September 2, 2024 – On Monday, September 2, 2024, Vivo, through its indirect subsidiary, VIVO Pay Sociedade de Crédito Direto SA (SCD), obtained a license to operate as a credit fintech, after receiving authorization from the Central Bank of Brazil to operate as such. The permission is an important milestone, as it gives the company more flexibility to develop new services and increases the efficiency of its fintech operation.

“This is a natural evolution of Vivo’s journey in the financial services vertical. Since 2020, we have been offering the first financial products, using the potential of the Vivo ecosystem. Combining our breadth of channels, the power of the brand and our high data processing capacity with one of the largest data lakes in Brazil, we have proven several services throughout this journey and the license with the Central Bank confirms the relevance that Vivo dedicates to its digital ecosystem”, says Leandro Coelho, director of Vivo Fintech.

In the coming months, the company will announce new services. All under the Vivo Pay brand, its financial solutions platform. Among them is a digital account aimed at its customer base and with exclusive benefits, in addition to new credit products, the flagship of the company's financial services portfolio. Vivo's personal loans reached R$446 million in June, an increase of 62.4% compared to the same period last year. And recently the company launched two more credit services: Pix installment and advance FGTS anniversary withdrawal.

Vivo Pay's portfolio also includes insurance for cell phones and other devices, such as tablets and notebooks. Considering 12 months, between July/23 and June/24, Vivo's financial services revenues totaled R$450 million, a growth of 26.9% year-on-year.

The migration to the new model will have no impact on the end consumer. Having end-to-end control of the operation also gives Vivo autonomy to increasingly integrate financial services into its channels, resulting in a better user experience for consumers. The strategy is to leverage the new services through the Vivo app, used by eight out of every 10 customers who want to talk to Vivo. Subscribers can purchase and manage their financial portfolio through the Vivo app, in the Vivo Pay tab, quickly and easily, without having to download another application.