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Launch HN: Atrato (YC W21) – Credit Card Alternative for Latin America

52 点作者 rogereur大约 4 年前
Hi HN! Roger here, with Juan and Alex, co-founders of Atrato (<a href="https:&#x2F;&#x2F;www.atratopago.com" rel="nofollow">https:&#x2F;&#x2F;www.atratopago.com</a>), from the YC W21 batch. We&#x27;re building a solution for consumers to pay on installments their big purchases without a credit card in Latin America. You can see it as &quot;Affirm for LATAM&quot;.<p>When it comes to paying for a large purchase (let&#x27;s say US$500) in LATAM, we have 2 options: paying upfront with cash or debit, or finance it using a credit card. The problem is that 80% of people here don&#x27;t have a credit card, getting one is hard and even those like me that have one, credit cards are frustrating, expensive and complex to understand. They can make you overspend, the terms and fees are opaque and keeping track of your purchases and payments it&#x27;s confusing.<p>This problem is pushing a lot of people to go to department stores with their own installment credit, but with incredibly expensive interest rates (+70% APR) or delaying important purchases for months or sometimes years! And merchants (like retailers or ecommerce) are losing potential sales and customers because they can&#x27;t offer financing themselves or other payment alternatives.<p>We stumbled into this problem while in college because we ourselves had a lot of problems with our banks and we are so passionate about financial services that when we had so many negative experiences with our own credit cards, we were inspired to build a more fair, fast and transparent solution for the people in LATAM. We saw that in many developed countries these solutions were gaining popularity and technology was available, so it didn&#x27;t make sense for us that there wasn&#x27;t something like that available.<p>Our payment method lets merchants offer their customers up to 18 monthly installments to pay for purchases of up to US$5k. When they&#x27;re in-store, consumers scan a QR code, apply in minutes with their phones, receive an instant offer and can enjoy their purchase! We then settle with the merchant upfront and collect the installments from consumers directly. For ecommerce, it works like any other payment method and we developed integrations with the major ecommerce platforms such as Shopify, WooCommerce, Magento and custom platforms. We make money by charging a discount fee to the merchant for each purchase and interest to the consumer (average ~40% APR, significantly lower than most credit cards in Mexico (~60% APR) and now launching 0% APR programs). Right now we&#x27;re live with global brands like Specialized Bicycles and Echelon Fitness and ~110 merchants in Mexico.<p>It&#x27;s been a crazy so far, we are first time founders and started the company while in college (Juan dropt out), learned from scratch how to underwrite credit, fraud, credit scoring and manage risk, built a complete platform (from the loan application, to the servicing software and all infrastructure), raise debt, sales, product design and a lot of other things!

16 条评论

thesimon大约 4 年前
&gt; This problem is pushing a lot of people to go to department stores with their own installment credit, but with incredibly expensive interest rates (+70% APR)<p>Surprising. At least in Brazil interest-free installment payments are extremely common, so much that prices in stores are often advertised with the installment amount.<p>One question: With all the problems with credit cards you mention, why didn&#x27;t you build a better credit card?
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leephillips大约 4 年前
Is the name related to <i>atrasar</i>, to postpone?<p>Not a criticism at all, because no doubt you are offering choices to people that currently don’t exist, but isn’t 40% APR still insane?<p>Sounds like you do some kind of quick, automated credit scoring. How does that work in Mexico and countries south? Do the big three scourges of the US reach into CA and SA?
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alroman大约 4 年前
Wow! Great job guys! I&#x27;ve often wondered how this could be solved in Mexico and you guys seem to have found a nice way to do it.<p>I&#x27;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&#x27;re targeting at all? Your aleados look very established.
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guillegette大约 4 年前
I was born in Argentina, I understand the pain. People that don&#x27;t have credit cards is mostly because:<p>a. they are not in the financial system, meaning they get paid in cash, etc<p>b. they get paid too little or they have debt so their score is low and therefore they don&#x27;t get access to a card<p>Your solution seems to be more suitable for people that can actually access a credit card but they find them &quot;hard&quot; so they can opt for something like your solution.<p>Curious to hear your take on this.
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thegginthesky大约 4 年前
When you say LATAM, which countries are currently supported?<p>This sounds awfully familiar to how credit cards work in Brazil, where merchants can let you divide payments in an arbitrary number of monthly installments. For example Amazon let&#x27;s you divide up to 10 times, some brick and mortar stores let you parcel up even longer.
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_vn5r大约 4 年前
This is not for Latin America. This is for Mexico only.
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atlasunshrugged大约 4 年前
Pretty cool - but why is it that so many people in LATAM don&#x27;t have credit cards? Does the existence of neobanks (I&#x27;m thinking Revolut, N26, etc.) change much in your thinking about the market?
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zero_kool大约 4 年前
Interesting idea, I have always wondered who could be supply side partner for startups that are trying to innovate in lending businesses.<p>Who is the supply side of the capital that&#x27;s being lent out?
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e-clinton大约 4 年前
Great idea. I see the same problem in Dominican Republic where interest rates are crazy high and people don’t have credit card.<p>Love the name by the way. Como vas a pagar? A trato :)
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glsdfgkjsklfj大约 4 年前
&gt; we have 2 options<p>hum. this is a telltale that you know very, very little about latin america.<p>There is actually 4 options. And you left the TOP TWO out.<p>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.<p>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.
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bikamonki大约 4 年前
I like the name! A great idea since affiliation will happen at the moment of purchase. Can it work for online stores&#x2F;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.
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ndebruyn_大约 4 年前
Hi 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.
29athrowaway大约 4 年前
It is a good idea, but you will encounter it is hard to collect money from people in Latinamerican countries.
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antihero大约 4 年前
So it&#x27;s a loan?
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unixhero大约 4 年前
Will it work in Brazil?
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whoisjuan大约 4 年前
You didn’t share a URL to your website or anything.
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