A little less than a year after raising an investment of R$ 40 million, ZigPay is putting into practice the plan to take its means of payment cashless aimed at bars, clubs and events for Europe. After landing in Portugal, the company is now targeting other countries on the Old Continent.
Founded in 2017 and invested by Edgard and Diogo Corona, from the SmartFit gym chain, and Ricardo Goldfarb, from the family that controls Lojas Marisa, the fintech that operates with cards or wristbands that are preloaded with credits by the consumer debuted in Portugal at the beginning Of this month.
The next stop on this “tour” through Europe will be in Belgium, when the system will be used to consume items at the Tomorrowland electronic music festival, scheduled for July.
“The arrival in Europe opens up a range of opportunities for us to operate in different countries and not only in events, but also in stadiums, bars and restaurants”, says Bruno Lindoso, who currently shares the position of CEO with Nerópe Bulgareli, co-founder of ZigPay alongside David Pires and Carlos Lino, in an interview with NeoFeed.
The expansion movement takes place thanks to partnerships signed by fintech with the bank Santander and with the Dutch startup Paybyrd, which also operates with means of payment cashless. With the agreements, ZigPay can operate in all European Union countries. On the radar are the markets of Holland and Spain.
The plan to reach the European market gained strength after the merger, last year, with NetPDV, another means of payment startup. cashless which was founded in 2014 by Bruno Lindoso.
The deal allowed the company to scale its operation and start to attend the main events held in Brazil. The company has already made the payment technology available at festivals such as Lollapalooza, Rock in Rio, Oktoberfest Blumenau, João Rock and Rodeio de Jaguariúna, among others.
“Today my biggest competitor is cultural”, says Lindoso. “I have just returned from Germany, where cash accounts for over 60% of event transactions. There are still events there like they did here in Brazil seven years ago, where people exchange money for plastic chips and tokens.”
In addition to offering a more practical way to make purchases by replacing paper tokens in boxes, ZigPay also manages the operation. A company system allows the merchant to have control of the financial operation, knowing which were the best-selling products, the times with the highest consumption, among other information.
From this captured information, the company is also able to perform an analysis on how a particular event can be organized. By knowing the consumption and average price of a particular beer at an event, the startup can help other producers with the choice of brands and the amounts that will be charged.
To generate revenue, the company charges a percentage of the volume transacted at the event. Another source comes precisely from the captured data, which is used for ZigPay to consult with producers, helping them to set up events.
The current operation has 200 employees and the company expects to hire at least 29 more people by this year. Lindoso does not reveal business figures, saying only that the fintech should move something around R$ 2.5 billion in TPV (total volume of payments) in 2022.
In this expansion strategy, the arrival in the Old Continent represents an important step. Currently, the startup already operates in Latin America, in countries such as Mexico, Uruguay, Peru, Colombia and Guatemala, with a team of 10 employees. The forecast is to triple the team by the end of the year and prepare a future expansion to Argentina and Chile.
Another market on the radar is the US. The arrival in the United States is planned for a “second phase” of international expansion, according to Lindoso. The tendency, however, is for this to happen only after one more capture.
The arrival in new markets, however, should only happen when the startup raises more money, something that is in the fintech plans. “We are discussing the possibility,” says Lindoso. “With what we have today, we can already guarantee growth until the end of the year and we are able to bring profitability to the business in a healthy way”.