← Embedded Finance Index 2026

MagaluPay

“Can Magalu convert its retail ecosystem into a self-funding embedded-finance business by owning the payments, credit, and wallet stack end-to-end?”

HQSão Paulo, Brazil
IndustryFintech / SMB banking
The story

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.

Last 12 months
2025-02
2025-12
Product timeline
2021
MagaluPay operating as HUB Instituição de Pagamento S.A., licensed by BACEN as e-money issuer and sub-acquirer· banking
2024
Partnership with Giro.Tech for digital CDC (crediário) credit infrastructure· lending
2025
BACEN authorized MagaluPay SCFI, expanding into direct consumer credit (BNPL) and financial institution funding sources· lending
2025
MagaluPay SCFI issued its first Letras Financeiras (financial bonds)· lending
2025
Named as an enabling partner for Mastercard Agent Pay in Latin America· card
Regulated entities
2
regulatory licences held by MagaluPay
Licence types, jurisdictions and registered entities are in the Embedded Finance Index report.
The stack
6 layers disclosed in MagaluPay’s embedded-finance stack
Payments / PSP
MagaluPay (self-operated sub-acquirer)HUB Instituição de Pagamento S.A. (in-house)
Money movement
in the full report
Banking / BaaS
in the full report
Card issuing
in the full report
Card network
in the full report
Lending
in the full report
Accounting gap: significant
12 more providers across 5 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.