Delivery startup Rappi ties up with Visa to offer pre-paid cards

Rappi, an on-demand delivery startup, reportedly announced to have partnered with Visa Inc., a US-based multinational financial service provider company, to offer a pre-paid card linked to its digital wallet in Brazil. In the strategic partnership with Visa, Rappi will expand its product roll out from Mexico & Colombia, cite sources.
Reportedly, the tie-up is expected to increase competition between app-based wallets in Latin America's largest economy and will enable Rappi customers to pay using money saved to the app, beyond its current QR code payment feature.
For the record, Rappi entered Brazil in July 2017, and currently has its presence in more than 20 cities across the country, with a growing rate of 30% per month, on average, which the CEO of the company confirms as the highest rate among the 7 countries in Latin America where it operates. Rappi's financial services unit, Rappi Pay started by allowing transfers between app users before introducing QR Code payments.
Ricardo Bechara, Rappi co-founder, Brazil, was reportedly quoted stating in an interview that enabling customers to pay using money saved to the app beyond its current QR code payment is one of the many financial solutions Rappi is planning to offer to its users. The company aims to have over 100,000 commercial establishments accepting Rappi Pay by year-end.
Bechara did not confirm what other services could be provided in future. As of now, the company is focusing on rolling out the pre-paid card throughout Brazil, he added.
Fernando Pantaleao, vice-president of sales & commerce solutions in Brazil, Visa Inc., was reportedly quoted saying that along with Rappi's alternative to spending funds kept in App-based wallet, the pre-paid cards would handle transactions beyond the internet. It will enable Rappi to develop better reward systems, including cash back & expand its customer base by attracting clients who want debit card but do not have a bank account, do not have a regular job or suffer from a low credit score, Pantaleao added.
Source credits: https://in.reuters.com/article/rappi-visa-brazil/delivery-startup-rappi-partners-with-visa-to-offer-pre-paid-cards-in-brazil-idINKCN1TL0B9

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