Ualá, the mobile payments company backed by such investors as George Soros, Steve Cohen and Softbank Group, will acquire 100% of Wilobank, the first digital bank in the country, said the sources, who asked not to be identified.
Eurnekian will become a minority shareholder of Ualá as part of the terms of the agreement, the value of which was not disclosed. Neither Ualá nor Corporación América Aeropuertos wanted to comment.
For Ualá, which offers a series of financial services based on a prepaid card managed through a mobile application, the agreement will allow faster growth and access to more clients.
The acquisition, which includes the access to Wilobank banking license, will allow the company to target customers you previously could not fully serve, including retirees and recipients of government social assistance.
Government payments are made through savings banks that only banks can offer.
Fintechs, technology companies dedicated to finance, have grown rapidly as the coronavirus pandemic accelerated the use of digital payment systems.
Ualá, which began serving small businesses this year, has issued 2.7 million prepaid cards in Argentina since it began operating in 2017.
The company, founded by Pierpaolo Barbieri, also launched operations in Mexico last year. It has a strong presence in the segment of young people between 18 and 25 years old.
Eurnekian, founder of the world’s largest airport operator, opened Argentina’s first digital bank in 2017.
According to central bank data, until September Wilobank had 240,000 savings banks and issued more than 170,000 debit and credit cards.
Ualá has 675 employees in Argentina. Wilobank had 38 employees in September, according to central bank data.
Its retail customers use the app to buy, pay for services, charge their cell phone or SUBE, and have the option of the Mastercard (a company with which Ualá has an exclusive prepaid agreement).
In addition to payments, it offers credits (with its own funds) and a mutual fund through SBS.
