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Brazilian digital bank Banco Inter SA has reached a deal to acquire FinTech start-up USEND as part of its plan to move beyond its South American borders, according to a securities filing, MarketScreener reported on Friday (August 27th).
USEND offers currency exchange, payment wallets, debit cards and bill payments to 150,000 customers. Most of the company’s clients are Brazilians living in the United States, but Banco Inter chief executive Joao Vitor Menin said his company wanted to compete with Chime Financial and SoFi Technologies Inc. by developing a global customer base.
“I think there is room for more banking competition in the US, with FinTech attracting customers from traditional banks,†Menin said, adding that USEND’s wallets would not charge a fee.
The value of the Banco Inter-USEND merger was not disclosed, but Menin said the USEND acquisition is the company’s largest deal since listing its shares in 2018. Banco Inter is backed by the Japanese group SoftBank Corp. The company is also considering acquisitions. in Europe and Latin America, Menin said, although it will likely operate without full banking licenses outside of Brazil.
Banco Inter has 12 million customers and comes as the bank draws up a plan to list its shares on the Nasdaq by early 2022.
Related: New Technology Greases Old Payment Rails To Enable Fast And Cheap International Banking
USEND COO and CTO Ran Grushkowsky told PYMNTS in June that establishing and managing cross-border accounts and transmitting funds was not easy.
The company has evolved from its inception in 2007 to become a provider of financial services platform for individuals and businesses. The platform saw $ 1.1 billion in payments volume and $ 17 million in revenue last year, more than double the previous year.
USEND operates as a mainstream brand but leverages partnerships to expand its reach and range of services offered. BBVA is one of its strategic partners.
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