BRASILIA, March 31, 2026, 18:59 BRT.
Nu Holdings Ltd, which owns Nubank, could be staring down fresh competition in Brazil: TikTok is seeking approval from the central bank to roll out payments and credit services. According to two sources familiar with the matter, ByteDance’s social media giant has filed for licenses that would allow it to operate prepaid accounts and extend its own credit—eyeing a market where Nubank has already made app-driven banking mainstream.
Timing is key here. Nu just wrapped up a record-setting quarter and isn’t slowing down, eyeing growth outside Latin America. At the end of 2025, the company counted 131 million customers. Fourth-quarter revenue jumped 45% to $4.86 billion, with net profit climbing 50% year-over-year.
TikTok is seeking approval for two new operations in Brazil: one to become an electronic money issuer, letting users keep balances and handle payments in-app, and another to function as a direct credit company—essentially a fintech lender that can’t accept deposits but is able to provide loans or link up borrowers and lenders. Requests for comment from TikTok went unanswered, and Brazil’s central bank also declined to weigh in.
ByteDance’s payments boss Liao Baohua sat down with central bank head Gabriel Galipolo in Brasilia on Tuesday, Galipolo’s public calendar shows. As for reach, DataReportal put TikTok’s Brazilian adult audience at 131 million by late 2025. Nu reported 113 million Brazilian customers at the end of the year—roughly 62% of the adult population.
Brazil’s fintech sector has only gotten more crowded. Last week, MercadoLibre announced plans to plow 57 billion reais ($10.9 billion) into the country this year, some of it earmarked for growing Mercado Pago’s credit book. PicPay, for its part, pulled in about $434 million through its Nasdaq IPO in January. “These deals will test whether investors are willing to bet on Brazilian startups again,” said Matt Kennedy, senior strategist at Renaissance Capital, commenting around the offering. Reuters
Nu shares trading in the U.S. jumped 6.4% to $14.37 late Tuesday.
Back in February, founder and CEO David Velez claimed Nu was “winning in Latin America,” pointing to a quarter where the company managed to “expand profitability.” At the time, CFO Guilherme Lago told Reuters that earnings benefited from a growing customer base, more revenue from each active user, and costs for services holding steady. Nu International
Nu’s preparations for a U.S. launch are already underway. Back in January, the company secured conditional approval from the Office of the Comptroller of the Currency to set up a national bank—a move co-founder Cristina Junqueira described as a “significant step.” Approvals from the FDIC and the Federal Reserve remain pending. Regulators have told Nu it must capitalize the bank within a year and open within 18 months. Nu International
Nu faces more than just new competition. Back in February, the company flagged that spending on its platform and its push into the U.S. might weigh on its efficiency ratio—essentially, costs versus revenue—in the near term. Following the fourth-quarter numbers, analysts pointed out that a lower tax rate and lighter operating expenses made it tougher to get a clear read.
TikTok’s ambitions in Brazil may yet hit a regulatory snag. ByteDance rolled out Douyin Pay in China back in 2021, and eyed a payments license in Indonesia last year—only for Indonesian authorities to block direct transactions on the app. For now, it’s not clear if the Brazil expansion targets a broader consumer-finance play or is limited to handling e-commerce and creator payouts within TikTok.
