Santander Enters Prepaid Card Market
Santander, a bank known for its subprime lending opportunities, is taking on a new role in the financial world. The Spanish banking giant is branching out in Brazil by taking over 50% of Super, a digital service provider offering online payments, prepaid cards and other financial services for the unbanked.
This is the first move into the prepaid industry for Santander Brazil, but the bank says this sector is “a market with great potential” in South America. The bank is taking advantage of this business model in an effort to expand into new territories.
“Super has a strategic business model in that it provides initial contact with financial services for a significant portion of the population,” said Conrado Engel, executive vice president of operations for Santander’s branch in Brazil.
The prepaid market falls in line with Santander’s typical consumers–unbanked or underbanked citizens with credit struggles, financial difficulties or lapses in their banking history. Super’s prepaid cards and online payment services reach out to the same group of people, making this a solid partnership.
Super’s platform gives consumers the opportunity to pay bills online, deposit funds onto their prepaid cards and load cards with foreign currency. Prepaid cards can be used in stores or online where credit cards are accepted.
The value of the new partnership was not disclosed.