Nubank’s “little boxes” onboard 1 million users in Mexico
Nubank (NUN.MX), the largest Brazilian digital bank, reached the mark of 1 million active users in Mexico, just one month after launching its savings accounts product in the country. The bank will also launch a Mexican debit card for customers to withdraw cash from ATMs.
The total deposits accumulated by Latin America’s star FinTech in this short period amount to a substantial 1 billion pesos ($58 million). Notably, nearly 90% of these funds are held within Nubank’s unique “little boxes” feature, which provides customers with a separate space within their accounts to hold funds and receive a 9% annual return.
Nubank has initially launched its service in Mexico back in November as it looks to scoop up market share in a country where more than half of people do not have bank accounts. Its local arm, known as Nu Mexico, opened a waiting list for the savings accounts, which are rolled out in stages with first access in May went to members of the company’s digital forum Comunidad Nu.
Nubank, which is owned by Warren Buffet, partnered last year with the New York-based exchange and stablecoin issuer Paxos for an exclusive in-app crypto trading experience. In particular, the US-listed broker’s customers are now able to buy, hold and sell a handful of crypto assets — Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Nubank is also set to roll out its own cryptocurrency later this year as part of a loyalty program. The currency, dubbed Nucoin, can be used to access discounts and other exclusive perks to holders of the token as “a new way to recognize customer loyalty and encourage engagement with Nubank products.”
The Sao Paulo-based fintech will invite 2,000 customers to use Nucoin during the trial period. Nubank expects the cryptocurrency to be available to its users in Brazil by the end of H1 2023, and said it plans to introduce it in other countries soon.
Nubank’s foray into the digital asset space is noteworthy due to the firm’s reputation for serving more sophisticated clients. The fintech – whose 50 million users make it one of the world’s largest digital banks – debuted on the New York Stock Exchange in 2021 in a listing that floated it as Latin America’s most valuable financial institution, worth $52 billion.
Although Nubank’s shares have taken a hit since then, the company is well-positioned for growth as Brazil alone accounts for more than a quarter of the $500 billion crypto market in Latin America.