Under the agreement, the retailer will pay USD 56.6million for purchasing the payment institution.
Hub Fintech began its operations in 2012 and is regulated by the Central Bank of Brazil. Its subsidiary Hub Payments is fully integrated with the Brazilian Payment System and the Instant Payment System. The company offers prepaid cards, a banking-as-a-service platform, and an API for payments processing.
By integrating with Hub, MagaluPay will provide its individual and business customers access to a financial products and services platform.
Customers can use the digital account to make purchases, deposits, transfers, bill payments, cash withdrawals, recharges, and more. Additionally, they can transact using the prepaid cards, which reflects the balance of the digital account.
The acquisition completion is subject to the approval of the Administrative Council for Economic Defense and the Central Bank of Brazil.
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