Nubank partners Polygon to expand Nucoin reach

Brazil-based Nubank has partnered Polygon to expand the reach of its Nucoin loyalty programme to around 70 million customers.

In October 2022, the two companies announced the Nucoin token and launched a pilot run involving around 2000 users. Nucoin was designed to recognise customer loyalty and encourage engagement with Nubank products, and by expanding the programme, the token could reach as many as 70 million customers across Brazil. 

As part of the programme, customers will reportedly have the option to freeze or even exchange their Nucoins for cash or other benefits in the future. It’s worth noting that the way Nucoin transactions will operate within the Nubank app will share some similarities to buying and selling cryptocurrencies.  

Nubank approved a trading outlet for Bitcoin and Ethereum in May 2022 but there is no secondary market for the bank’s crypto token at the time of writing. Moreover, users are not able to transfer the units outside of personal wallets. Developed by Polygon, Nucoin will have 100 billion units, and Nubank’s loyal customers will benefit from an airdrop plan. According to beincrypto.com, 80% of the 100 billion Nucoins will go to customers, including Nubank’s customers as well as companies that might join the programme in the future.

Nubank’s expansion efforts

While it already enjoys a considerable presence in Brazil, Nubank is also working to expand to other countries in Latin America. For instance, the company has secured a loan of up to USD 150 million from the International Finance Corp in January 2023 in order to expand its operations in Colombia. The company wants to use the funds to increase access to financial services in Colombia, particularly for women and marginalized communities.  

In addition to encouraging more business competition in favour of consumers, the new loan will also expand Colombians' access to payment systems. To be specific, Nubank wants to encourage the adoption of digital financial services that are more effective, accessible, and easy to use.  

Nubank has a division in Colombia named Nu Colombia, which is a fast-growing credit card issuer. In August 2022, Nu Colombia made the announcement that the country's regulator had granted its proposal to form a financial firm. This licence allowed Nu to add a full savings account linked to other credit products to its lineup of credit cards and e-wallets, as well as acquire deposits, a less expensive financing source similar to that used by large banks.