Buenos Aires-based fintech firm Uala has launched a no-fee credit card in Argentina, targeting the massive population of unbanked Argentines, according to a Bloomberg report.
The company, which is backed by investors George Soros, Steve Cohen, and Tencent Holdings, is offering its no-fee credit card first to its five million customers in Argentina.
This announcement comes six years after Uala’s inception and follows the successful introduction of a similar credit card in Mexico earlier this year, as stated by CEO Pierpaolo Barbieri.
Despite Argentina’s challenging economic climate, marked by 143% inflation and high interest rates, Barbieri expressed confidence in the expansion within their home market.
Notably, approximately 60% of Argentines currently lack a credit card, highlighting a significant market opportunity.
“We’re very bullish about our Argentina operations,” Barbieri said, aspiring to make Ualá the largest financial entity in the country.
In Mexico, Uala has already experienced robust growth, with hundreds of thousands of customer sign-ups per month for its credit card service.
Expectations are high for the Argentinian market, where Uala’s customer base represents a substantial portion of the country’s economically active population.
Uala’s primary competitor in Argentina is MercadoLibre Inc.’s fintech division, Mercado Pago. However, Uala aims to stand out with its Mastercard-operated credit service, offered via its subsidiary Uilo (formerly Wilobank), which will not incur opening, maintenance, or renewal fees.
A unique feature of Uala’s credit card is the provision of instant global push notifications through its mobile app, allowing users to see the exchange rate for their transactions.
The fintech company, which had a valuation of around $2.5 billion last year, remains on track to achieve break-even in its home market by the end of this year, the Bloomberg report said. The company’s goal is to become the largest financial player in the country.
Last year, Uala was reported to be investing $150 million in 18 months in order to support its virtual banking business, primarily in Mexico and Colombia.
