In its newest move to expand revenue streams, PicPay announce this Wednesday (26) the entry in the corporate benefits sector. Fintech will offer everything from vouchers, such as meals, food and gasoline, to anticipation, salary payment and payroll management, starting to serve from HR to company employees.
The new service was named PicPic and will be available to users on the card and direct digital account on the platform. For consumers, there are some gains. There is no need to pay fees in anticipation of salary and it is also possible to transfer the balance of benefits between different categories and send these resources to family members.
“We want to be a solution that delivers to the worker much more than a card to receive benefits, but a totally new experience, which helps to take a breath when bills pressure for him to avoid more expensive lines of credit, and which gives him power of choice and freedom to manage everything he receives from the company, says Danilo Caffaro, vice president of financial services for individuals at PicPay, in a note.
The executive also highlights that “in addition to fulfilling the role of really being a benefit to the employee, it helps HR to retain and engage even more your talents”. According to PicPay< /a>, before reaching the market, the solution was tested for 8 months , with 10,000 collaborators from PicPay and partners. The goal is to serve up to 400 thousand beneficiaries in 2023.
DIVERSIFICATION
The entry of the super app into benefits is another step in the business diversification strategy. Recently, the company started offering public payroll loans, after the acquisition of fintech BX Blue. In February, Finsiders also revealed that PicPay is setting up an investment unit, based on structure of Liga Invest, a DTVM that integrates the J&F group.
Fintech results have also been improving. In Q4 2022, PicPay registered the first profit in its history in the fourth quarter of 2022. In the consolidated for the year, it added losses of BRL 693 million in the accumulated year — but it was already 64% lower than in the consolidated 2021, when losses reached BRL 1.9 billion.
An important point is that PicPay anticipated the breakeven by two years, which was scheduled for 2024. And tripled annual revenues, closing 2022 with R$ 2, 9 billion. Between October and December, revenue increased 75%, reaching R$ 761 million.
COMPETITION
In the case of the benefits market, fintech J&F (also owner of Banco Original) is eyeing a very attractive segment from a business point of view: the estimate is that the sector revolves around R$ 150 billion per year. So obviously the dispute is heavy. In addition to established companies such as Alelo, VR, Sodexo and Ticket, several new startups have emerged in recent years. They are names like Cashew, Flash and iFood , which are gaining more and more space.
Also in favor of new entrants are the changes in the sector's rules, which come into force in May. One of the novelties is the end of the so-called “rebate”, a practice that consisted of offering discounts and special conditions by card issuers to their corporate customers.
“With the new changes and the greater competitiveness of the sector, we are facing a race for innovation and better products and experiences. In this dispute, the winner is the worker, who becomes the center of the discussion, and HR, which is attentive to new demands and needs”, says Tiago Vasconcelos, executive responsible for the new business unit of PicPay, also in a statement.
Source: StartSe