Rappi to launch its own Visa debit card in Mexico

Contxto – With Nubank rapidly expanding into Mexico, not to mention the scaling of neo and challenger banks, Rappi now plans to launch its own Visa debit card to compete in the market.

In Summary

Not satisfied with the delivery industry, Rappi is adding more options to its plethora of products. Hoping to become a “super app” for users to perform their basic needs. To achieve this, the startup announced its goal to venture deeper into the fintech sector.

While the company already has a payment processor, RappiPay, its vision goes beyond that. According to Kristen Hager, Rappi’s director of brand alliances, the strategy depends on the development of more financial products. This way, Rappi can benefit more people.

“Our vision and what we are as a company is not just delivery, but a commercial company, a super app,” said Hager. “We provide several services, at any time, for different types of consumers. With financial services, we are targeting the unbanked or underbanked sector in the region and creating a path that will help them.”

In-Depth

With this new Visa partnership, Rappi will be able to explore other services, such as savings accounts and credit lines.

The Colombian unicorn is seeking to expand its reach and gradually widen its focus to new customers. Previously, Rappi’s main target for delivery services were wealthy people in a hurry. Nonetheless, now the goal is to increase the app’s customer base to the general public.

“We can go from where we were when we launched, which were areas with people with little time but more money, to be an app that is for all kinds of consumers and not just that sector,” said Hager. “We can resolve user tensions with our services.”

Competition to provide financial services to “unbanked” customers is fierce. Native digital banks, traditional banks, as well as tech companies, are adamantly trying to win over the highest share of the market.

-VC