PicPay collaborates with Citigroup on US IPO

Thursday 20 June 2024 15:21 CET | News

Brazil-based mobile banking app PicPay is allegedly in a close collaboration with banking group Citigroup for a potential initial public equity offering (IPO) in the US.

The company aims to carry on with the transaction as soon as market conditions allow buy asked not to be identified before the news went public and confirmed.

Additional info about the potential IPO

PicPay initially filed for a US IPO back in April 2021, aiming for a valuation estimated at USD 8 billion but it quickly withdrew its registration two months later, in June 2021. 

First launched in 2012 as a digital wallet, PicPay was bought in 2015 by J&F Investimentos SA, the holding company behind successful meatpacking brand JBS SA. The payment fintech claimed it broke even for the first time in March 2023, finalising the same fiscal year with a reported net income of USD 6.8 million. 

Brazil-based mobile banking app PicPay has recently announced a close collaboration with banking group Citigroup for a potential initial public equity offering (IPO) in the US.

What you need to know about PicPay and Citigroup

PicPay is a digital wallet in Brazil specialising in products both for end-users and for businesses. Users choosing to open a PicPay account can benefit from a digital account, an account for underaged people (minors), credit card, and can make payments via PIX. At the same time, PicPay also provides a series of loans, including a credit with vehicle guarantee.

For businesses, PicPay can be used as a wallet for ecommerce, driving digitalisation in the realm of local payments and boasting financial inclusion. 

In the past few years, especially with the launch of PIX, Brazil has become a digital payments hub and a playground for solution providers advocating for alternative payment methods. According to PagBrazil, the country counts for 16.3 million unbanked people or 10% of the total adult population. Moreover, out of those who do have a bank account, 11% use their bank account for transactions less than once a month, which shows a declining interest for bank solutions. 

At the same time, the number of smartphone users in Brazil hit 155 million in 2023, favouring the launch of various digital wallets that can be easily integrated with a single device, without requiring any banking information. 

Citigroup is a financial services company based in the US and the most profitable one, according to Forbes Global 2000. Some of the services provided by Citigroup include liquidity management, payments, trade and working capital services, and security solutions. In the digital realm, Citigroup has a digital-first approach, powering cross-border payment solutions and promoting the adoption of instant payments in the US. 

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Keywords: ecommerce, partnership, IPO, digital wallet, digital payments, digital banking, equity, cross-border payments, digitalisation, financial inclusion, financial services, fintech, local payment method, instant payments, public listing, PIX
Categories: Payments & Commerce
Companies: Citi, Citigroup, PicPay
Countries: United States
This article is part of category

Payments & Commerce






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