Brazil agencies urge credit card market overhaul
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024
Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024Brazilian antitrust authorities and the central bank will recommend a series of measures aimed at increasing competition and transparency in the nation’s credit card industry, the central bank said on Thursday.
The proposals include ending the exclusivity that local card operators VisaNet and Redecard have with Visa and Mastercard, respectively.
VisaNet and Redecard have a combined market share above 90 percent.
The agencies are also urging the introduction of greater transparency in the determination of tariffs, among other measures. The proposals still have to be approved by the justice and finance ministers and the central bank president.
Both VisaNet and Redecard authorize merchants, issuers and transactions and act as a clearinghouse.
The authorities also want to strengthen the usage of debit cards in Brazil and force operators to share networks.
JPMorgan Chase analyst Saul Martinez, in a report distributed on Wednesday, said some of the measures could be introduced via legislation, whose outcome “would be uncertain and most likely would take time to move its way through Congress.”
Shares of Redecard were down 1.28 percent at 26.90 reais. Visanet traded 2.67 percent lower at 17.11 reais in Sao Paulo trading.
