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How does Nubank make money? See five curiosities about the card | Productivity

Nubank is the company responsible for the purple credit card that has gained fame among young people for its facilities and benefits. The proposal of the startup Being an all-digital service has already saved 1 million tons of paper, according to the company. This is possible due to the absence of physical agencies and the use of Android or iPhone (iOS) phones, so that the customer can check their invoices and perform other actions related to the service. A pioneer in the digital credit card segment, fintech (as institutions that use technology to innovate the financial system are called) draws attention and raises some curiosities in consumers, such as the company's revenue source.

As it does not charge its customers fees, it generates profit in alternative ways, such as from interchange. New products from startup, such as Nubank Rewards and the debit function linked to the credit card also generate interest in its operations. The following are the main curiosities about the Nubank card, which were listed by TechTudo.

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1. How does Nubank make money?

Nubank earnings are in tenant fees and customer invoice interest Photo: Disclosure / NubankNubank earnings are in tenant fees and customer invoice interest Photo: Disclosure / Nubank

Nubank earnings are in tenant fees and customer invoice interest Photo: Disclosure / Nubank

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One of Nubank's great appeals to the public is that the financial institution does not charge annuity or maintenance fees to those who wish to avail themselves of the service. The company's main source of revenue the so-called interchange. When a customer makes a credit card expense, the merchant pays a transaction fee, which is about 5% of the purchase price. This amount is divided into three parts: one portion goes to the company behind the little machine, another to the credit card banner and the last to Nubank.

Other Nubank earnings are related to interest that is charged when a customer delays or finances the credit card bill, according to the co-founder of the company, this is a small portion of the company's revenue. startup. There is also the rate paid by customers who wish to be part of the Nubank Rewards benefit program. However, this optional membership and the amount paid becomes benefits for the consumer.

2. Why is Nubank one of the most innovative companies in Latin America?

Financial services offered in the digital environment are Nubank's main innovation factor Photo: Divulgao / NubankFinancial services offered in the digital environment are Nubank's main innovation factor Photo: Divulgao / Nubank

Financial services offered in the digital environment are Nubank's main innovation factor Photo: Divulgao / Nubank

Fast Company magazine named Nubank one of the most innovative companies in Latin America in 2018 and the most innovative in Brazil. The justification is that the digital bank goes against the high fees charged by other institutions when it comes to credit cards, since it does not charge annual fees or monthly fees to its customers. Accessibility to the service also helped to win the award as there are no physical agencies and Nubank services must be used from a smartphone (Android or iOS) by the characteristic customer who, according to the company's website, helped save 1 million tons of paper that would be used for paperwork and invoices, for example.

This type of service was a pioneer in Brazil and highlighted Nubank's differential over traditional banks. According to the company, there are more than 6 million customers using the services offered by the company.

Nubank Rewards is the operator's own loyalty program. Photo: Divulgao / NubankNubank Rewards is the operator's own loyalty program. Photo: Divulgao / Nubank

Nubank Rewards is the operator's own loyalty program. Photo: Divulgao / Nubank

Customers of startup may choose to pay a fare and participate in the Nubank Card Points program. With it, each $ 1 spent becomes a point, which can be used as a discount on purchases made on digital services that have partnership with the company, such as Netflix and Uber. Points accrued by the customer never expire and can also be used to erase daily hotel and area ticket purchase amounts from the invoice.

For discounts to occur, the customer must have enough accumulated points to discount the total purchase amount, not just a portion. A Netflix monthly fee, for example, requires 2600 points to be removed from the bill, which is equivalent to an average expense of $ 217 on the card bill. For this reason, joining the program is only worth it for those who have monthly card spending above certain amounts. To participate in Nubank Rewards, the user must pay the subscription in the amount of R $ 19 per month or R $ 190 per year.

4. How to use the debit function on Nubank?

Nubank's debit function began testing in December 2018 and can now be requested by customers Photo: Reproduction / Helito BeggioraNubank's debit function began testing in December 2018 and can now be requested by customers Photo: Reproduction / Helito Beggiora

Nubank's debit function began testing in December 2018 and can now be requested by customers Photo: Reproduction / Helito Beggiora

Upon entering the Brazilian market, Nubank offered a single product: the digital credit card. With the advancement and popularity of fintech, services have expanded and since 2018 startup It also offers NuConta, a free digital account to which the user can apply their money to make it yield in the form of a savings.

NuConta's benefits are similar to those offered to the digital credit card: you can control your expenses through the application, there is no annual fee or maintenance fee to maintain the service and the user can make unlimited transfers to all banks at no charge. Through NuConta it is also possible to request the debit function for an existing Nubank card. The new feature is being tested and requires the Nubank user to request the service and enter a queue. Upon receiving the invitation, he must unlock the function in the Nubank app, available for Android and iPhone (iOS) phones.

5. How does Nubank offer a secure service?

Nubank's service relies on high-level encryption, but the user can also avoid problems with good access practices. Photo: Barbara Mannara / TechTudoNubank's service relies on high-level encryption, but the user can also avoid problems with good access practices. Photo: Barbara Mannara / TechTudo

Nubank's service relies on high-level encryption, but the user can also avoid problems with good access practices. Photo: Barbara Mannara / TechTudo

Because it is a fully controlled service from the customer's mobile phone, many users may feel suspicious when using the product. Importantly, the card follows the laws imposed by the Central Bank of Brazil. In addition, the startup Ensures that information privacy is one of the company's priorities, which uses high-level encryption to ensure the protection of customer data and transactions.

Some basic user care can also be provided to avoid headaches: the app should only be downloaded from official sources such as the NuBank website or official stores such as the Google Play Store and the App Store. Also, never send data via SMS, avoid using banking on public Wi-Fi networks, and keep your device up to date and with an antivirus installed.

Digital credit card turns fever in Brazil: is it worth having one? See the TechTudo Forum.

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