Pagseguro Obtains a Banking License
Pagseguro already has a bank to call. This week, Brazil’s central bank agreed to transfer control of Banco Brasileiro de Negusius (BBN) to Luis Frias, the majority shareholder of UOL, who controls the payments company. The news first appeared in the payments blog of Edson Santos, a former executive at companies like Rede, FirstData and Global Payments.
Frias applied for a license to buy the bank in November last year, according to a central bank document.
The document indicates that BBN will be controlled by a holding company, which counts among its indirect shareholders Luis Frias, Folhabar, UOL and Pagseguro. Investors have long expected Pagseguro to enter the banking sector.
With a banking license, a company – which meets the demanding needs of entrepreneurs – can offer credit and other financial services to a population that does not have access to large banks.
The move underscores a strategy that has become increasingly evident: acquiring a high-tech gateway to challenge traditional banks.
The purchase of the BBN license comes months after Pagseguro tried to buy Agibank, the bank with financial profile and digital health.
However, a banking license is not the only way – although it is the shortest – for an explorer to compete with the big banks.
The explorer can obtain specific licenses for the services currently provided by the banks and compete with them in the same way.