PayPal Ventures Backs Brazilian Startup Ume with $15M Investment
Hey, Payments Fanatic!
PayPal Ventures is back in action, this time investing $15 million in Ume, a Brazilian startup shaking up the market with its smart use of the Pix payment system.
Ume’s buy now, pay later (BNPL) services are already partnered with 6,000 businesses and reach 220,000 consumers. Impressively, 85% of purchases through Ume’s BNPL option come from repeat customers!
Pix, Brazil’s national payment system, has been a game-changer since 2020, and Ume’s integration has rapidly expanded its merchant base and customer loyalty. PayPal Ventures sees Ume as a future leader in Brazil’s payments industry.
PayPal Ventures has been busy globally, with recent investments in AI firm Rasa and the Miami-based MELI Kaszek Pioneer. With $850 million invested in 70 startups since 2017, they remain a FinTech powerhouse.
Ume’s strategy focuses on leveraging Pix to offer flexible payment options and attract customers. With 80% of its transactions offline, Ume is tapping into Brazil’s retail core.
Stay tuned for more payments industry updates!
Cheers,
INSIGHTS
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PAYMENTS NEWS
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GOLDEN NUGGET
💳 How does Push To Card Work? How is it different from regular payments?
How does Push To Card Work? How is it different from regular payments?
Here is a step-by-step guide:
► Step 1 - The client initiates a payment request.
► Step 2 - The banks or PSPs (Payment Service Providers) validate payment details and debit the client’s account.
► Step 3 - The transaction is sent to the card network (Visa, Mastercard).
► Step 4 - The card network validates the payment details.
► Step 5 - The transaction is sent to the issuing bank.
► Step 6.1 - The issuing bank notifies the payment recipient and credits the recipient’s account.
► Steps 6.2, 7, and 8 - The payment status is returned to the card network, banks, and the client.
► Step 9 - Funds are now available.
Use Cases:
- Gig economy payouts
- Payments via digital wallets
- Loyalty
- Fund disbursements
- Merchant settlements
Sources: Hua Li & JP Morgan Payments Docs
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