Payroll-secured loans don’t exist in the US, but they are a better alternative to credit cards. They let people with guaranteed incomes automatically deduct a monthly sum from their paycheck to re-pay the lending bank. That results in rates that are 10x lower than credit cards.

Before bxblue, Brazilians who wanted a payroll-secured loan had to talk to bank agencies or count on freelance street brokers who often directed them to loans that paid the agent the highest commission. bxblue is taking a shady offline practice and replacing it with a transparent online marketplace. The founders thought it was unacceptable that in a $40B/year market that represents 60% of personal credit in Brazil, it was impossible to get a fair, fast, convenient payroll-secured loan online.

bxblue has also been co-developing a solution with Brazil’s largest bank, Banco do Brasil, which is responsible for close to 30% of the payroll-secured market, to give borrowers a seamless end-to-end online loan solution.

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TechCrunchbxblue wants to move payroll-secured loans online in Brazil