Snapcard came to Brazil, and now?

The Snapcard is an American company specialized in solutions for payment with bitcoin which started its operations in Brazil, in partnership with the Pagpop, a Brazilian startup that specializes in mobile payments. Its main objective is to facilitate the bitcoins transaction providing solutions for users to purchase the currency using local payment methods.

The Snapcard developed a POS application (Snapcard Bitcoin POS), available through mobile point of sale operators (Pagpop and Android Application Store, for example), which allows any merchant accepts payments in bitcoins with a single fee per transaction in the amount of 0.5%. It still provides a mobile wallet for Android devices, iPhone and Web-based.

Snapcard in Brazil, and now?

After registration, users can buy bitcoin by bank transfer, credit cards, debit cards, prepaid cards or boletos. The virtual wallet allows you to send, receive and buy bitcoins free, without application of any rate. You can make transactions directly without intermediary, being checked by networks nodes.

According to Bitvalor, the company responsible for monitoring bitcoin, the expectation for 2015 in Brazil would be over R $ 70 million in transactions. As is known, in Brazil the fear of inflation, which fires every day without notice, and higher taxes in emerging markets, makes people take the risk in buying bitcoin in Brazil, because turns out to be safer . Also in Argentina, some people buy bitcoins to protect their savings because of its high rate of inflation, or the possibility of governments confiscate the savings accounts. The same happened in Cyprus during the financial crisis of 2012-2013.

According to Marcio Campos, CEO and founder of Pagpop, the bitcoin offers new opportunities for Brazilian traders will no longer face higher rates and for long periods to their settlement. The Snapcard already has agreements with more than 25,000 merchants around the world and more than 15,000 active members in bitcoin wallet. The payment gateway AZPay is integrated with Snapcard too.

In Brazil already counts on more than 15,000 merchants that have joined this digital currency and Snapcar, allowing traders receive bitcoin, wants to transform Brazil at the country with the highest number of transactions in this currency worldwide.

For this, the North American company sees an opportunity in the current global exchange crisis to increase their business in Lands of Vera Cruz, because this currency is not regulated by central banks.

However we cannot forget that the business or transactions in bitcoin is a risk. According to Mark T. Williams, the bitcoins have volatility seven times higher than the gold, eight times higher than the S & P 500, and eighteen times greater than the US Dollar. This is because there is no stabilization mechanism of the currency value. This fluctuation can be explained by the uncertainty over the long-term value of bitcoins, which do not generate confidence in the market to keep with minimum volatility (same happens with the R$ or other currencies of countries with a major political crisis, or with great uncertainty in the future).

Next steps please!

Author: Team Fintech Brazil

Mapping Fintech Companies in Brazil

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