“Can Magalu convert its retail ecosystem into a self-funding embedded-finance business by owning the payments, credit, and wallet stack end-to-end?”
MagaluPay is the financial-services arm of Brazilian retailer Magazine Luiza (Magalu). It started as HUB Instituição de Pagamento S.A. — a BACEN-authorized payment institution and sub-acquirer processing card/PIX/boleto for Magalu's own marketplace sellers — and expanded into digital wallets, prepaid cards, insurance, and receivables management. In 2025 Magalu obtained BACEN authorization for MagaluPay SCFI, upgrading the entity into a full credit institution so it could originate direct consumer credit (BNPL/crediário) and issue Letras Financeiras. The strategic thesis is to convert Magalu's retail ecosystem into an embedded-finance flywheel that funds itself.
MagaluPay discloses MagaluPay Instituição de Pagamento S.A. (in-house) as its banking provider, according to the Embedded Finance Index 2026.
MagaluPay does not disclose a bank charter of its own; its banking services are provided through MagaluPay Instituição de Pagamento S.A. (in-house).
MagaluPay processes payments through MagaluPay (self-operated sub-acquirer) and HUB Instituição de Pagamento S.A. (in-house). Disclosed money-movement rails: Pix.
MagaluPay's cards are issued through MagaluPay Instituição de Pagamento S.A. (in-house) on the Mastercard network.
MagaluPay's lending and capital products are provided by MagaluPay SCFI (in-house) and Giro.Tech.
The Embedded Finance Index 2026 maps 6 layers in MagaluPay's stack: Payments / PSP (MagaluPay (self-operated sub-acquirer) and HUB Instituição de Pagamento S.A. (in-house)); Money movement (Pix); Banking / BaaS (MagaluPay Instituição de Pagamento S.A. (in-house)); Card issuing (MagaluPay Instituição de Pagamento S.A. (in-house)); Card network (Mastercard); Lending (MagaluPay SCFI (in-house), Giro.Tech, Crédito com Garantia (secured credit for sellers), Capital de giro (working capital) and 4 others).
MagaluPay is headquartered in São Paulo, Brazil.
Get a read on where your own stack stands against MagaluPay and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.