Brazilian FinTech company Ume announced in a press release on Friday, August 30, that it has successfully raised $15 million in a Series A funding round led by PayPal Ventures.
In addition, Ume has secured a $20 million debt facility through a FIDC (Fundo de Investimento em Direitos Creditórios).
The funds will be utilized to expand Ume’s payment network and merchant services platform, explicitly enhancing its capabilities on Brazil’s instant payment system, Pix.
This expansion aims to increase the company’s regional presence and improve its small and medium-sized business (SMB) offerings.
“Our vision is to build a next-generation payment network and merchant services platform on Pix Rails that provides Brazilians with more accessible and flexible payment methods and enables thousands of Brazilian SMBs to grow their businesses,” said Berthier Ribeiro, co-founder and CEO of Ume.
Currently, Ume provides a buy now, pay later (BNPL) service through a network of 6,000 merchants across Brazil, reaching over 220,000 consumers. Notably, 85% of transactions using Ume’s consumer financing product are made by repeat customers.
Since integrating Pix into its platform in early 2023, Ume has seen significant growth, including a fivefold increase in its merchant base, a threefold rise in consumer repeat rates, and a 33% reduction in default rates.
The company is now focusing on creating a Pix-first payment network that offers additional payment options for SMBs and their customers.
Ian Cox, investment partner at PayPal Ventures, highlighted the strategic advantages of Ume’s approach. “By building its infrastructure on the public Pix rails, Ume can quickly scale up by instantly onboarding new merchants and consumers, as well as through expanded product offerings such as enabling certain consumers to purchase from merchants outside the Ume network, allowing them to buy both online and offline.”
A recent report by PYMNTS Intelligence and Galileo, titled “Promising Payments: Digital Payments Gain Ground in Latin America,” reveals that 82% of Brazilian consumers view Pix as having a positive or very positive impact on their lives.
The report also notes that 43% of Brazilian consumers use Pix daily, surpassing the 29% who use credit cards and the 21% who rely on cash.
