It is a good idea, but you will encounter it is hard to collect money from people in Latinamerican countries.
Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
61–69 of 69 posts
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#62It is a good idea, but you will encounter it is hard to collect money from people in Latinamerican countries.
Did you have any personal experience on this? We get this a lot, specially from investors, but so far have very manageable levels of loan losses with $1.5m already lent. We haven’t seen that even during COVID-19
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#63> 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…
Thanks for the info. Those two options, at least in Mexico (second largest country in latam) don't exist. I presume that on those countries where they do exist aren't as popular as traditional payment methods. What countries do you use those two options?
Parent is most probably talking about Brazil, where we do have both "boleto" and "cheque pré-datado". Boleto is very convenient and I wish it existed here in the US. Can you make another startup to introduce Boletos in the US?
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#64I was born in Argentina, I understand the pain. People that don't have credit cards is mostly because: a. they are not in the financial system, meaning they get paid in cash, etc b. they get paid too little or they have debt so their score is low and therefore they don't get access to a card Your solution seems to be more suitable for people that can actually access a credit card but they find them "hard" so they can…
In Mexico and other countries in LATAM, there are huge department stores that have built their own banks to give their customers credit to purchase on the store. Combined, these stores have ~20 million customers and are some of the largest banks in Mexico. Our solution it's focused on these customers, who already have some sort of credit but find paying their purchases on installments easier, more affordable and tran…
That's what SEARS did here in the US with what's now known as Discover Card.
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#65It is a good idea, but you will encounter it is hard to collect money from people in Latinamerican countries.
Did you have any personal experience on this? We get this a lot, specially from investors, but so far have very manageable levels of loan losses with $1.5m already lent. We haven’t seen that even during COVID-19
Having a low credit score is the main reason people are not eligible for credit cards. One of the reasons people have low credit scores is because of not paying.
Now, why is it that they do not pay? not because they're bad people with bad intentions. It's because they gradualy accumulate debt until they cannot repay anymore.
Let's say you meet the requirements for a credit card, but you have a low salary. Then, you go to the supermarket, and pay your groceries in monthly installments because you cannot afford them. You know this will work only temporarily but the choice is to not have anything to eat. So many people just go ahead and do it. They trade a present problem with a future problem.
Eventually, they fail to pay for food they bought 6 months ago and their credit score goes to nothing, they get blacklisted, and their credit card gets killed.
In Latin America it is not rare at all to hear about people making $400 a month that are $40,000 in debt.
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#66Earlier quoted context omitted.
In Mexico and other countries in LATAM, there are huge department stores that have built their own banks to give their customers credit to purchase on the store. Combined, these stores have ~20 million customers and are some of the largest banks in Mexico. Our solution it's focused on these customers, who already have some sort of credit but find paying their purchases on installments easier, more affordable and tran…
That's what SEARS did here in the US with what's now known as Discover Card.
Yes, exactly. It’s just like that but think as if SEARS had built the bank itself. It’s crazy but here literally two of the largest banks were created this way
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#67Earlier quoted context omitted.
Thanks for the info. Those two options, at least in Mexico (second largest country in latam) don't exist. I presume that on those countries where they do exist aren't as popular as traditional payment methods. What countries do you use those two options?
Parent is most probably talking about Brazil, where we do have both "boleto" and "cheque pré-datado". Boleto is very convenient and I wish it existed here in the US. Can you make another startup to introduce Boletos in the US?
I am in the US let's roll!
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#68Hi team great idea, I’ve worked with credit card processing companies before on marketing efforts so if I can be of any value let me know.
Re: Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America
#69Earlier quoted context omitted.
Did you have any personal experience on this? We get this a lot, specially from investors, but so far have very manageable levels of loan losses with $1.5m already lent. We haven’t seen that even during COVID-19
Having a low credit score is the main reason people are not eligible for credit cards. One of the reasons people have low credit scores is because of not paying. Now, why is it that they do not pay? not because they're bad people with bad intentions. It's because they gradualy accumulate debt until they cannot repay anymore. Let's say you meet the requirements for a credit card, but you have a low salary. Then, you g…
There is also decision fatigue: Low income people are forced to make so many decisions that eventually they give up and make decisions that are bad.