Although Nubank is beginning to reap the rewards of investing in a wider range of services – such as insurance -, the “neobank” listed this week, in a reference form sent to the Securities and Exchange Commission (CVM), a series of risks to the business that will deserve attention. Regulatory changes and increased competition in the card industry are among the factors cited.
Last year, interchange fees and interest related to credit cards accounted for just under half of fintech’s revenue, compared to a share of 63% in 2020. Born from the no-annuity credit card, Nubank earns revenue from the product through this exchange paid by the acquirers (companies that settle the operations) and revolving credit.
“Our revenue will be significantly harmed if we lose all or a substantial part of our credit card business, whether due to loss of customers, regulatory or legislative changes,” commented the fintech in the form, citing the possibility that the fees charged could be capped. by regulators.
Analysts expect the credit card to be a source of headaches this year, against a backdrop of high inflation and debt. “Notably, unsecured consumer credit and credit cards are likely to face some pressure as the year begins with high inflation and household debt,” JPMorgan said in a report.
Fintech also admits that competition is likely to increase, “as emerging technologies continue to enter the market and large financial institutions increasingly seek to innovate the services (…) they offer.”
