Tino is a B2B fintech that is re-inventing the way merchants pay their suppliers. The company allows merchants to use their credit card receivables as a payment method to their suppliers. Without Tino, merchants often have to pay very high-interest rates to anticipate credit card receivables when paying their suppliers; likewise, the suppliers are exposed to the merchants’ credit risk, as they rely on them to be paid back.
In 2020, Pedro Sônego and Luis Cascão left their Venture Capitalist jobs at Kaszek and DNA Capital, respectively, after Brazil’s Central Bank passed a new regulation allowing Tino to arise. With this new regulation, Tino can "wrap" many credit card receivables using technology, allowing merchants to pay suppliers with no interest rates and charge a small take-rate for the service. The suppliers, who are used to holding the credit risk, can now be paid with a safe receivable at a risk that is close to zero. The risk that exists is in the charge-back, which decays dramatically 24 hours after the transaction. With that, suppliers not only decrease default rates to almost zero, but also increase sales significantly by offering this new type of payment method for unknown merchants to whom they were not providing credit before Tino existed.
Because this new method has clear advantages for both sides, we believe there will likely be a flywheel effect in the go-to-market. The supplier will convince more merchants to join the platform so they can sell more, and the merchants will offer this payment method to more suppliers so they can save more. The more suppliers there are in the base, the better it is for the merchants. The more merchants there are in the platform, the better it is for the suppliers. The founding team believes that this flywheel can be as relevant for the merchant as credit cards are for the end users.
Tino is a B2B fintech that is re-inventing the way merchants pay their suppliers. The company allows merchants to use their credit card receivables as a payment method to their suppliers. Without Tino, merchants often have to pay very high-interest rates to anticipate credit card receivables when paying their suppliers; likewise, the suppliers are exposed to the merchants’ credit risk, as they rely on them to be paid back.
In 2020, Pedro Sônego and Luis Cascão left their Venture Capitalist jobs at Kaszek and DNA Capital, respectively, after Brazil’s Central Bank passed a new regulation allowing Tino to arise. With this new regulation, Tino can "wrap" many credit card receivables using technology, allowing merchants to pay suppliers with no interest rates and charge a small take-rate for the service. The suppliers, who are used to holding the credit risk, can now be paid with a safe receivable at a risk that is close to zero. The risk that exists is in the charge-back, which decays dramatically 24 hours after the transaction. With that, suppliers not only decrease default rates to almost zero, but also increase sales significantly by offering this new type of payment method for unknown merchants to whom they were not providing credit before Tino existed.
Because this new method has clear advantages for both sides, we believe there will likely be a flywheel effect in the go-to-market. The supplier will convince more merchants to join the platform so they can sell more, and the merchants will offer this payment method to more suppliers so they can save more. The more suppliers there are in the base, the better it is for the merchants. The more merchants there are in the platform, the better it is for the suppliers. The founding team believes that this flywheel can be as relevant for the merchant as credit cards are for the end users.