Brazilian card market on the way up

Thursday 14 August 2014 13:02 CET | News

During the first 3 months of 2014, the Brazilian card market has jumped by 17% reaching a total volume of USD 100 billion (BRL 223 billion), according to data from online payment gateway PagBrasil.

While Visa and MasterCard are still predominant, local brands such as Elo and Hipercard are also gaining market share. Until July 2010, the card acquirers Cielo (formerly called Visanet) and Rede (formerly called Redecard) could only capture Visa and MasterCard respectively. The Brazilian Central Bank, who regulates the market, ended this exclusivity in order to stimulate competition. Currently, Cielo, Rede and other acquirers that entered the market can all process Visa and MasterCard, but other labels including Elo, Hipercard, American Express (AmEx) and Agrocard are still exclusive. These four brands now represent more than 10% of the overall card market, according to Abecs, the Brazilian Association of Credit Card and Service Companies.

It is important to highlight that the domestic card labels are limited to purchases within Brazil and in Brazil’s national currency (BRL). International banks and acquirers cannot process these cards. Multinational ecommerce merchants can therefore maximize the ratio of successful payment transactions in Brazil by taking advantage of the growing trend of domestic card labels, by using a local payment processing service, such as provided by PagBrasil.

PagBrasil is an online payment processing service in Brazil designed for Brazilian and international ecommerce platforms. The company provides services in the sales and buying process with over 15 years of online payment processing experience in Brazil.

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Keywords: Brazil, cards, online payments, PagBrasil
Categories: Payments & Commerce
Countries: World
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