Payface Acquires SmileGo, Expanding into Private-label Card Market

Published 7 months ago

The Brazilian fintech company, Payface, specializing in facial biometric payments, has announced its acquisition of SmileGo. SmileGo, a startup excelling in onboarding payments and facial recognition, primarily serves the white-label card market. The financial details of the transaction remain undisclosed.

The acquisition comes approximately three months after Payface’s Series A extension, valued at R$15 million. This led to the raising of Revolution, an Oasis Ventures fund. A fund from BTG Pactual led this round, with Hi Partners and the multifamily office Oikos also participating.

Impact on Payface and SmileGo’s Clientele

SmileGo, founded in 2021, was part of RPE and Vsoft. RPE processes proprietary cards for about 60 retailers, while Vsoft provides biometric technology. This merger allows Payface to extend its technology to various SmileGo clients, including Grupo Pereira, Condor, and Oscar Calçados.

Eládio Isoppo, CEO and co-founder of Payface, acknowledged the synergy between the two companies. He believes that this acquisition will significantly expand their offerings to the public.

Merger Leadership and Future Goals

Victor Braz, former CEO of SmileGo, will now oversee closed deals at Payface. He believes that the merger strengthens their intent to enhance retail shopping experiences and security through facial biometrics. The company plans to reach 1 million active users per month in the coming months.

Biometric payments can benefit card issuers by bolstering transaction security levels. The direct integration with RPE and retailers already capturing biometric data simplifies the process for users, as they do not need to download the Payface application. Payface plans to announce the first customers for this new product within 30 days.

About Payface and Future Endeavours

Founded in Florianópolis in 2018, Payface developed facial biometrics technology to simplify and secure payments at retail outlets. The solution is available in networks such as St. Marché, Zona Sul, and Prezunic of the Cencosud Group. By the end of this year, the company aims to have 2,000 POS integrated with its technology.

Additionally, Payface is developing a payment method through face recognition with Pix. The company is currently awaiting authorization from the Central Bank to operate as a payment transaction initiator.