💣 Brazil🇧🇷: TikTok seeks to obtain a license from the Central Bank to provide financial services

💣 Brazil🇧🇷: TikTok seeks to obtain a license from the Central Bank to provide financial services

The platform aims to obtain authorization to operate electronic money and offer lending services. In other words, two licenses are required.

🟰 Broadly speaking, TikTok is looking to build a financial services ecosystem inspired by the business model of digital bank Nubank🇧🇷. The addressable market is substantial: Brazil ranks third globally in TikTok users, with 91 million users out of a population of 213 million.

🟰 A license as an electronic money issuer would allow TikTok to offer Brazilian users prepaid accounts for storing funds, receiving payments, and conducting in-app transactions.

🟰 Meanwhile, a license as a direct credit company would enable the platform to deploy its own capital to originate loans or operate as an intermediation platform connecting borrowers and lenders.

🟰 Both the company and the Central Bank have declined to comment on the report, which was leaked to the press.

#news #Brazil

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