Why We Invested in Ume

By Ian Cox Moya

Today, we are excited to announce PayPal Ventures’ investment in Ume .

Earlier this year I had the unique opportunity to travel to Manaus, Brazil – in the middle of the Amazon – for work, nonetheless. Although the trip was short, it was rich with natural beauty and human insights. In Manaus I got to meet the “other Brazil;” the cities we don’t often think about, but that are home to almost 200 million people. I also got to meet Berthier Ribeiro, CEO of Ume, and see how the company is giving consumers access to credit and helping small- and medium-sized merchants grow their businesses.

Building on PIX

Our investment in Ume is predicated on the disruptive potential that account-to-account payments could have on global commerce in the next 10 years. Ume’s point-of-sale network is built on PIX, Brazil’s instant payment system. By being PIX native, Ume ensures rapid and secure transactions that enhance the user experience and streamline the credit process. Building on PIX meets Brazilian consumers where they are; PIX is now the most widely used payment method in the country. Most importantly, Ume’s PIX-based platform significantly reduces transaction costs, making credit more affordable and accessible to millions.?

AI at its heart

Ume’s AI-first approach further enhances its ability to make credit more accessible. Ume’s AI-based credit underwriting allows it to analyze a vast array of data points more accurately and efficiently than traditional methods, leading to more precise risk assessments, better-informed lending decisions, personalized loan terms, and higher approval rates. In collections, Ume employs AI to optimize strategies for debt recovery, identifying the most effective communication channels and times to engage with customers, improving the likelihood of successful repayment. Additionally, predictive analytics help Ume anticipate potential defaults and take proactive measures to mitigate risks, modify loan terms, and help consumers meet their obligations.

Finance as a force for good

In addition to being an exceptional business, Ume exemplifies how finance can be a catalyst for positive change by giving consumers access to more flexible ways to pay to meet their financial goals, and by helping SMBs in underserved markets grow and expand their businesses. Congratulations to Berthier Ribeiro and the entire Ume team for helping consumer’s meet their financial goals and helping small retailers grow. We are excited to be part of this journey!

If you’re a merchant looking to learn more about Ume’s credit products for your customers: https://site.ume.com.br/seunegocio

If you’re interested in career opportunities at Ume: https://www.inhire.com.br/carreiras-ume/

About PayPal Ventures?

PayPal Ventures is the global corporate venture arm of PayPal. We invest for financial return in six areas of high strategic relevance to PayPal, including fintech, payments, commerce enablement, artificial intelligence, blockchain & cryptocurrency, and regulatory/cyber technology. Through the expertise, experience, and vast network of PayPal Ventures – and the companies we invest in – we are helping to bring transformative solutions to market faster. For more information, please visit: https://www.paypal.vc.?

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