Visa Inc. today announced a strategic partnership agreement with Rappi, the leading on-demand delivery platform in Latin America, to help accelerate digital commerce and financial inclusion throughout Latin America and the Caribbean. Under the multi-year agreement, the companies will work together to drive digital payment solutions and next-generation financial services and eliminate cash from low-value transactions: a benefit for both businesses and consumers using the Rappi platform. This agreement is an expansion of the collaborative work that has been done with Rappi in the region.
“At Visa we understand that digital platforms continue to drive significant innovation that benefits the payments and commerce ecosystem throughout Latin America. The collaboration with Fintech digital solutions companies, startups and companies is a fundamental component of our growth and innovation strategy. This partnership with Rappi demonstrates our commitment to support emerging and high growth digital companies in our markets, “said Eduardo Coello, president of Visa for Latin America and the Caribbean. “Rappi, one of two ‘unicorns’ in the region, has an innovative vision, the muscle of execution and a leadership team that places the client first, to be the ideal partner that catalyzes the acceleration of trade and business solutions. next generation payments. They are revolutionizing trade and financial services and we could not be happier to join them on this trip”.
As mobile and digital payments become the norm, Visa’s goal is to ensure that all payments are simple, convenient and secure, regardless of the device used to pay, whether it’s a portable device, a phone, a appliance or any other device connected to the Internet.
The partnership agreement is an extension of the work we have been doing together. Rappi and Visa are making the Rappi platform more secure, through CyberSource Decision Manager, a fraud management solution that is a fundamental part of CyberSource, Visa’s payment management platform. The solution mitigates the risk of payment fraud, and offers Rappi the ability to customize rules and models for its specific business, through all its channels. Ultimately it helps Rappi streamline payment transaction authorization processes, while providing a safer environment for its consumers. In addition, Visa and Rappi have worked on projects to simplify the payment of independent domiciliary. Rappitenderos (Rappi messengers) now use Visa accounts to efficiently receive payment for services rendered and to manage daily expenses.
“Visa has a culture of innovation, a customer-centered approach and a global presence that we want to take advantage of in this partnership to create the next generation of digital payment solutions,” said Simón Borrero, co-founder and CEO of Rappi. “We are proud of this partnership and we are already working together to fulfill the promise of digital transformation for both businesses and consumers. I hope for the opportunities that are coming with this alliance”.
Colombia leads the way of this partnership
The announcement comes as Visa and Rappi collaborate to launch the RappiPay Visa debit card, a new card that has been commercialized for the first time to Rappi’s most frequent user-members in Colombia, and will be launched at public in the coming weeks. Customers can subscribe to the elegant orange card directly through the Rappi application. The card is delivered by a Rappitendero and then activated by a unique QR code. The rechargeable card, enabled for contactless payments and issued by Banco Davivienda, is a convenient product as it functions as a debit card that can be used both for online purchases and physical stores.
“Extending a Visa debit card to the thousands of Rappi customers immediately expands financial inclusion efforts in Colombia and their ability to participate in the digital economy and electronic commerce”, added Humberto Guihurt, general manager of Visa Colombia. “This is just one simple step of the many that we plan to give with our association”.
Colombia has established itself as the third ecosystem of Fintech companies in Latin America, with a net growth of 45% in the last year and a half, with 78 new companies, according to data from 2018 of Finnovista. Colombia’s Rappi, which achieved unicorn status in 2018, valued at more than US $ 1 billion, currently operates in Colombia, Mexico, Brazil, Peru, Argentina, Uruguay and Chile. The strategic partnership with Visa is panregional and will grow with the expansion of Rappi in other markets.
Also published on Medium.