The fintech ID Finance has launched its Plazo neobank in Spain, which integrates transactional solutions with flexible credit and payment services into an app and plans to progressively incorporate more financial solutions.
Term combines a commission-free Mastercard debit card with different alternatives in deferment of payments and credit lines offered through ID Finance Spain, S.A.U., another company of the ID Finance group. In a few months, it already has more than 30,000 users.
“The flexibility to decide how and in what terms to return credit products is key to ensure that customers are always covered and achieve financial peace of mind. Added to this are the many benefits of using the debit-free Mastercard debit card, such as ‘cashbacks’ for purchases made with it and discounts in many shops”, the entity highlighted in a statement.
New markets for ID Finance
With the launch of Plazo, the fintech seeks to respond to the demand for flexible solutions to defer payments and access small lines of credit that, as they see it, “many Spaniards do not see satisfactorily covered at present.”
In this context, ID Finance has detected in southern Europe and Latin America a market opportunity valued at 400,000 million euros, with almost 500 million people who could benefit from Term financing solutions.
After the launch of Term in Spain, the next destination for the neobank will be Mexico, a country where the fintech has been operating for more than four years through other brands. The forecast is to launch Plazo in Mexico in 2022.
ID Finance co-founder Alexander Dunaev has highlighted the fintech’s “solid experience in solutions and credit management“, which since 2015 has processed 9 million credit applications internationally.
“All this acquired expertise leads us to go one step further and promote a digital platform that offers a wide range of financial services designed to meet the daily needs of millions of people. Our goal is to provide maximum financial peace of mind. This is only possible thanks to our technological ‘know-how’, which naturally leads us towards the consolidation of a disruptive neobank that integrates savings, payment and credit solutions”.
For his part, the CEO of Term, Alessandro Ceschel, has advanced that the intention of the neobank is to progressively incorporate more financial solutions, such as installment payment services, ‘Buy Now and Pay Later’ (BNPL) or payroll advances and savings solutions, among others.