Colombian Rappi will offer digital banking services through RappiPay

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BOGOTA (Reuters) – Rappi, the Colombian delivery app backed by SoftBank, will be allowed to offer digital banking after approval from the Andean country’s financial regulator, the company said.

Colombia’s financial watchdog has authorized RappiPay, a joint venture between Rappi and Banco Davivienda bank, to operate as a digital bank, the company announced on Thursday.

“From now on, deposit and savings products will be offered by the financial entity RappiPay through its own platform,” Rappi said in a statement.

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Until now, RappiPay offered an online credit card and deposit account, as well as other financial services in Colombia, Mexico, Brazil, Peru and Chile – depending on local regulations – but did not offer the full services of an online bank.

In Colombia, RappiPay already has some 800,000 users and has issued some 200,000 credit cards.

RappiPay boss Gabriel Migowski told Reuters last November that Rappi and Davivienda had agreed to invest $100 million in the financial platform.

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Rappi, which was founded in 2015 and received $1 billion in investment from SoftBank in Japan, operates in 250 cities in nine Latin American countries.

Last August, Rappi raised just over $500 million in a funding round, bringing its valuation to $5.25 billion.

(Reporting by Nelson Bocanegra; Writing by Oliver Griffin; Editing by Mark Potter)

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