Technology

Brazilian mobile operators could join forces to build a digital wallet service for prepaid customers

The suggestion came from TIM's head of strategy, as the company is already working in something like that

Customer paying with NFC technology, through a digital wallet service. Photo: Shutterstock.

On Thursday, during a webinar by Mobile Time, a news website focused on telecommunications, TIM’s head of strategy and transformation Renato Ciuchini, said that Brazilian mobile carriers should work together to build a digital wallet for prepaid customers.

“All operators are studying (the creation of financial services) and have working groups on the subject. My view is that in a segment with many players it makes sense to work together. But I know it is not easy,” Ciuchini told Mobile Time.

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In defense of his proposal, he argued that the sector’s companies “know” practically all CPFs in Brazil. And that their respective customer bases are their greatest asset.

Furthermore, the executive said that the launch of a financial service brings a number of advantages for any telecommunications operator, such as cost reduction and churn reduction, in addition to generating additional revenue.

The telecom market needs to evolve. The customer is hungry for credit and gigabytes. We want to monetize the base outside our core business

RENATO CIUCHINI, TIM’s head of strategy and transformation.

The executive stressed that, for now, his proposal is just an idea, with no solid movement of approximation between the telcos around a joint project of a digital portfolio.

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Ciuchini said that TIM intends to operate on two independent fronts when it comes to financial services. The first one, thinking about medium and high-value customers, some services will be offered in partnership with C6 Bank from the second semester–according to Mobile Time, depending on the numbers reached, TIM will have an equity stake in C6 Bank.

The second front is that of the digital wallet, focusing on the prepaid and unbanked customers segment. In this case, the operator’s preference would be to build something together with the other telcos, as mentioned by Ciuchini.