TikTok Seeks Brazilian Central Bank Approval for Lending and Payments Licenses
TikTok is seeking approval from the Brazilian central bank to operate as a lending and payments fintech, Marcela Ayres of Reuters reports, citing two people with direct knowledge of the matter. TikTok has applied for two licenses with the Brazilian central bank, one allowing it to operate as an "electronic money issuer," offering prepaid accounts for users to hold balances, receive funds and make payments within its app, sources told Reuters. The second license would make it a "direct credit company," allowing TikTok to lend its own capital or act as a platform connecting borrowers and lenders, the people added. Reuters says TikTok is attempting to run a playbook popularized by Nu Holdings (NU), the country's largest digital bank. Other names in Brazil's fintech sector include StoneCo (STNE), PagSeguro (PAGS), and XP Inc. (XP).
