Purchase in dollar: fintech allows installments up to 9 times – 05/12/2023 – Market

Fintech Nomad launched this Wednesday (10) the possibility of paying purchases in dollars abroad in up to nine installments. The company charges an interest rate for the service, which depends on the value and number of installments.

Although installments are common in Brazil, it is rare abroad for companies to accept this form of payment.

The financial startup allows the purchase in installments from credit cards issued in Brazil. The establishment abroad receives the amount in cash using the Nomad debit card.

“Our customers can pay in the app the value of their purchases from US$ 100 in three, six or nine installments”, says the chief executive of Nomad, Lucas Vargas, in a publication on LinkedIn.

The customer first needs to make the transaction with an international debit card. Afterwards, access the extract in the application and choose to pay the purchase amount in installments.

“The installments will be charged in reais on the Brazilian credit card you choose, and the transaction amount in dollars will be available again in your Nomad account within one business day”, says Vargas.

He created fintech with the aim of making it easier for Brazilians to access the global market in a simple way, he says. The company’s card is accepted in more than 180 countries, where it is possible to make purchases in person or online and make withdrawals at ATMs.

“By making the exchange through the Nomad app with the commercial dollar rate, the traveler avoids the tourist dollar and the 5.38% IOF levied on transactions made with traditional credit cards in foreign currency”, says the CEO.

The Avenue platform, which belongs to Itaú, the digital bank C6 and the Brazilian operation of the British fintech Revolut offer a way to make international purchases without paying credit card fees, such as Nomad.

Avenue, C6 and Nomad offer international accounts with a debit card accepted in several countries, without the option to pay in installments.

Revolut provides customers with a global prepaid debit card. The product allows international transactions with 27 currencies in about 150 countries and reduced taxation.

Financial institutions need to maintain banking operations in the different currencies available in the global account to offer the service.

Nomad seeks an alternative solution by closing partnerships with exchange brokers abroad to offer international currencies at a competitive price.