The latest fintelco moves in Latin America

With the commercial launch of its personal credit service in Brazil, Telefónica has expanded its financial services footprint and advanced its strategy to become a digital content hub.

After going through a pilot phase between August 2019 and April 2020, Vivo Money will now be rolled out to postpaid and controlled (hybrid) plan customers, providing loans of 1,000-30,000 reais (US$178-US$5,347) via mobile phone.

Interest rates start at 1.99% per month and vary according to a customer's credit profile analysis, while payment terms vary from six to 24 months. No additional fees apply. Loans are backed by Banco Digio and offered in partnership with Ibi Digital.

And the Spanish telco is not alone.

Other companies have also moved to reinforce their fintelco strategy.

TIM-C6

After inking a partnership with digital bank C6 to develop combined offers for customers, Brazil’s TIM is preparing to launch more financial services with its partner by year-end.

Recently, the telco has taken the benefits offered, such as data bonuses and plan discounts, to all of its clients. Previously, only prepaid and controlled (hybrid) plan users who were also clients of C6 were entitled to those.

Last month, TIM and C6 made available instant money transfers to the telcos’ clients via the financial institution's app. Remittances are instantly credited and have no cost, according to the companies.

Clients can send money to another TIM customer just by adding the mobile number of the recipient. Transfers to non-TIM users are also possible, but not as fast.

The service, called C6 Kick TIM, is similar to Brazil’s own instant payment service PIX, which the central bank plans to activate on November 3.

Beyond a commercial agreement, the TIM-C6 alliance allows the operator to buy participation in the bank, specifically shares that are conditioned to the partnership's performance.

TIM is also proposing to other carriers the creation of a prepaid digital currency. Clients of these plans would be able to use credits of their top-ups as electronic money for purchases and remittances.

TIGO MONEY

In El Salvador, Millicom’s Tigo announced in October new features for its mobile wallet.

The fintech Tigo Money now allows users to self-register and top up virtual wallets through a web application, using their credit and debit cards.

The service allows Tigo users to fill in a digital contract without leaving home, by submitting required documents online.

Users can still refer to any Tigo Money point or kiosk to create the Tigo Money account, the company said.

Daniel Barrientos, the mobile wallet’s executive director in El Salvador, told newspaper El Mundo that nine years after the launch of the platform, Tigo Money has reached 90% of all municipalities and has around 2,000 agents.

BIM

In Peru, digital wallet BIM, which has technology giant Ericsson and telcos Claro, Entel and Movistar as partners, may now be used for the payment of a COVID-19 subsidy.

Launched in February 2016, BIM is run by Pagos Digitales Peruanos (PDP), jointly owned by private sector players such as banks and financing companies. 

BIM can be employed by consumers to send and receive funds, pay for services and top up their mobile phone credit. 

The digital wallet could be used from November for the payment of 760 soles (US$211) – the second cash transfer to support families without a formal income amid the health crisis.