Magalu Demystified: The Retail Giant’s Financial Side Hustle

This report provides a detailed exploration of how Magalu has seamlessly integrated fintech into its retail ecosystem, building a robust financial services arm that caters to consumers, merchants, and businesses alike.

Inside the Playbook:

• Growth through Embedded Finance: Since entering the credit market in 1992, Magalu has expanded its fintech presence through Fintech Magalu, now offering payment initiation and open finance services. Discover how the retailer leverages embedded finance to improve customer experience, streamline operations, and promote financial inclusion in Brazil.
• Tech Monetization: Magalu’s “Magalu-as-a-Service” model uses its tech stack to provide a BaaS platform, enabling businesses to access financial solutions like credit issuance and POS services. Explore how this strategy enhances Magalu’s role as an enabler for both consumers and merchants.
• A Multi-Pronged Strategy: Magalu’s fintech success is rooted in a holistic strategy that combines internal development (Luizacred), strategic partnerships (Itaú Unibanco and Visa), and key acquisitions (Hub Fintech). Discover how this approach enables Magalu to provide a comprehensive range of financial services, including credit and digital banking.

• Business Performance and Metrics: Analyze the financial health of Magalu’s fintech arm through revenue, active users, and the credit portfolio performance of Luizacred. Understand how Magalu’s fintech operations contribute to its growth, marked by rising profitability and declining default rates.
• Future Outlook: Learn about the next steps for Magalu, including plans to expand its BNPL services and enter new sectors like cryptocurrency trading.

Unlock the full potential of Magalu’s fintech journey—download the report now and discover strategic insights that could fuel your next move in the embedded finance era!