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This is not for Latin America. This is for Mexico only.
hum. this is a telltale that you know very, very little about latin america.
There is actually 4 options. And you left the TOP TWO out.
1st is boleto. where you get a payment slip with the total bill split in monthly payments, with instructions to pay at the bank with special cases for late payment, etc.
The 2nd most used is to write pre-dated, pre-signed monthly checks. That work like an informal version of the boleto and gives more leverage to the seller.
Wow! Great job guys! I've often wondered how this could be solved in Mexico and you guys seem to have found a nice way to do it. I'm curious, but would someone who has a small shop at the mercado be able to use your service? Would this let them compete against Coppel if a consumer want to buy cheaper electronics from the guy across the street? Are these the people you're targeting at all? Your aleados look very estab…
I'd guess that the strategy is to start with specific vendors or purchases where it's easier to model origination + creditworthiness. I think the open question from my end is whether as a VC-backed business there's an incentive to go downmarket anytime soon or whether it makes more sense to expand across higher-end businesses for the next few years.
Earlier quoted context omitted.
Both seem to allow people to pull forward purchases in anticipation of being able to afford them later. How does Atrato prevent someone who would be prone to falling into debt if they used a credit card from not falling into debt using Atrato and its 40% APR rate?
Yeah, the problem of credit cards it's all the confusing terms around payment dates, revolving balance, minimum payments. While this might sound trivial in countries with higher financial literacy. So with credit cards it is easy to just say, I'll leave some balance and pay it later. But that will start generating interest over interest, and really quick it can become a snowball trap where then your income only lets…
This is not for Latin America. This is for Mexico only.
The countries are just too different, it doesn't make sense to treat them as a block.
> we have 2 options hum. this is a telltale that you know very, very little about latin america. There is actually 4 options. And you left the TOP TWO out. 1st is boleto. where you get a payment slip with the total bill split in monthly payments, with instructions to pay at the bank with special cases for late payment, etc. The 2nd most used is to write pre-dated, pre-signed monthly checks. That work like an informal…
This is not for Latin America. This is for Mexico only.
This is not for Latin America. This is for Mexico only.
To be fair when I read "for LATAM" I usually expect it to be "for one particular country but we want to pretend it's for LATAM". (Not picking on this launch specifically.) The countries are just too different, it doesn't make sense to treat them as a block.
I like the name! A great idea since affiliation will happen at the moment of purchase. Can it work for online stores/services? How do you manage the legality of the operation, for example, down here in Ecuador you need to be an accredited financial institution in order to write loans or receive payments.
We do work with online and offline merchants. Fortunately in Mexico regulation on credit is not restrictive on credit, the most important regulations are around AML and KYC.
Great idea. I see the same problem in Dominican Republic where interest rates are crazy high and people don’t have credit card. Love the name by the way. Como vas a pagar? A trato :)
The name comesfrom the Atrato River, which is a river that connects central america with south america and provides a safe way for travelers while passing through the rough and dangerous terrain of the Darien Gap. And yeah, also means that you pay "on deal" :)