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Here’s what you need to know about Nubank’s revenue model

Alpaca Team
Alpaca Team

Founded in 2013, São Paulo-based Nubank was one of Latin America’s earliest digital banks. The firm rose to unicorn status within four years after launching and went public on the New York Stock Exchange in 2021. Now it’s amassed 65 million customers in Brazil, Mexico, and Colombia and established itself as one of the world’s largest digital banks.

Here’s what fintech builders can take away from its revenue model.

  • Nubank's journey began with no-fee credit cards in Brazil

Nubank started out with a singular focus on no-fee credit cards in 2014, which helped the company to build its brand. Despite a low credit card penetration rate in Latin America, Nubank has positioned itself as the top issuer of new credit cards in both Mexico and Colombia and derives a significant portion of its revenue from its credit card business, earning money through interchange fees and interest rates.

  • Nubank aims to increase client engagement by building a multi-product platform

The company's goal is to become a multi-product, multi-country platform. Since its credit card launch, the company has diversified and expanded its offerings into crypto, insurance, SME and personal loans. To support its growth efforts, Nubank has leveraged acquisitions to target complementary businesses–including but not limited to EasyInvest, Juntos, Creditas, SpinPay, and Olivia.

More insights are published in our report How Does Nubank Make Money? Nubank’s Revenue Model Explained.

Alpaca and Nu Pagamentos S.A. are not affiliated. Please note that this article is for general information purposes only and is believed to be accurate as of posting date but may be subject to change. All images are for illustrative purposes only. Alpaca does not provide investment, tax, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.

This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account or in any jurisdiction where Alpaca Securities is not registered or licensed, as applicable.


Alpaca Team

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