Nubank Partners With Wise; Enters Global Account Market
One of the world’s leading neobanks, Nubank, is set to enter the global account market after partnering with UK fintech Wise.
The Brazilian neobank has partnered with Wise to build its global account market, which it intends to initially roll out to ultraviolet customer bases (high-income customers).
This comes as part of Nubank’s wider strategy to expand its customer base to include more high-income segments of society.
It also follows a move to extend money transfer capabilities between the US and Mexico via WhatsApp, in partnership with Felix Pago.
Nubank: Expanding services with Wise
Announced on April 8 2024, Nubank’s first dip into the global account market has begun with a pre-registration for customers in the ultraviolet segment, with the service expected to roll out in the coming weeks.
At the time of its launch, Nubank’s global account market offering will firstly be available for travel or allocating reservations in either US Dollars or Euros.
At present, Nubank has not announced plans for further investment abroad in the global account market.
As reported by Bloomberg, Nubank CEO in Brazil Livia Chanes says: “The travel segment is a priority for the high income public and we enter it with the ultraviolet differences that customers already know.”
Per Nubank, one of the additional services it will offer as it expands into global accounts is free internet on internation trips. This included 10GB of internet valid for 30 days in more than 40 countries, with a virtual chip (eSIM) that can be activated once per year.
What’s more, Nubank hopes to entice more customers into taking out a global account by offering potential conversion fees among the lowest on the market, with rates from as low as 0.9%, ranging to 2%.
Expanding its reach through the Wise Platform, Nubank’s global banking accounts will have associated debit cards with use in more than 200 countries and territories.
No card issuance fee will be charged to Nubank’s high-end customers at the time of its global accounts launch, suggesting this service may be made available to wider members at a later date.
Nubank: Entrenching itself in the banking landscape
Nubank’s move to offer global accounts further entrenches its presence in delivering expanded services, taking it closer to offering the same range of services as a longstanding incumbent banking institution.
Indeed, FinTech Magazine recently discussed how the battle lines between legacy and neobanks would be drawn in 2024, asking what neobanks needed to do to keep innovating in their bid to steal larger shares of the banking market.
Nubank, it seems, is now answering the question, by expanding its product portfolio even further to better compete with established incumbents.
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