- The Neobank offers various services, including bank accounts, credit cards, loans, insurance, investments, and now, mobile data for travelers.
- Nubank’s eSIM service marks its first foray into the mobile network sector, following a wider trend in fintech.
- Since its inception a decade ago, Nubank has undergone remarkable expansion. Over the past year, its valuation surged by 170%, reaching an all-time high of $58 billion in March.
The launch of Nubank‘ eSIM services follows the quiet approval from Brazil’s National Telecommunications Agency (ANATEL), allowing Nubank to become a mobile virtual network operator (MVNO) in collaboration with wireless giant Claro.
Nubank’s new role
The Neobank offers various services, including bank accounts, credit cards, loans, insurance, investments, and now, mobile data for travelers. Both Neobanks and MVNOs are digital-first, offering lower overheads and greater agility compared to traditional players. The rise of eSIM technology is further driving this cross-pollination as companies compete for customer attention, revenue, and data.
Nubank’s Travel eSIM services are easier to implement in terms of the MVNO role due to its partnership with Gigs, which manages regulatory compliance.
Also read: Neobanks outpace legacy banks in 2023 with 18M more downloads
Trends of eSIM service
Nubank’s eSIM service marks its first foray into the mobile network sector, following a wider trend in fintech. Although the company has not yet released specific details about its MVNO plan, its move mirrors that of other neobanks like Revolut, which launched a similar eSIM service for premium subscribers in February. Additionally, we’ve seen telecom companies such as T-Mobile enter the banking space, while traditional banks like Brazil’s Banco Inter and South Africa’s Standard Bank have introduced their own MVNO services. Similarly, last year Indian neobank Zolve added mobile networks to its offerings to assist immigrants in setting up banking and mobile services prior to arriving in the U.S.
Also read: Revolut takes action against Meta Platform scams
Nubank’s growth
Since its inception a decade ago, Nubank has undergone remarkable expansion. Over the past year, its valuation surged by 170%, reaching an all-time high of $58 billion in March.
Notably, the company revealed that its net profit for 2023 amounted to $1 billion, signifying a substantial turnaround from a net loss of $9 million in 2022. As Nubank achieved unprecedented revenue milestones in the first quarter of 2024, its customer base has exceeded 100 million across Brazil, Mexico, and Colombia. Recent data from Nubank, released in September, indicates that the company now boasts 5 million virtual credit card customers, solidifying its position as one of the credit card issuers in Brazil. Furthermore, approximately 2.5 million individuals have enrolled in Nubank’s digital bank accounts, introduced just one year ago.
