I have some exciting news to share with you about our business in Brazil. First, I would like to provide some history of our presence in Brazil. We first entered the market in 2001, and today we provide infrastructure and correspondent banking to more than 10,000 merchants across the country.
Beginning early next year, we’ll launch a new merchant processing business, with our partner Bancoob (Banco Cooperativo do Brasil S.A), a private bank specializing in services for cooperatives.
This partnership will further develop holistic services for the world’s second largest payment card market by combining the complementary strengths of our end-to-end payment acceptance and processing services with Bancoob’s local market experience and access to more than 2.5 million cooperative members and 300,000 cooperative merchants.
Brazil has a flourishing economy and, according to the International Monetary Fund, Brazil is ninth largest consumer market in the world, with expectations to reach fifth by 2030.
Marco Aurelio Almada, Chief Executive Officer, Bancoob and Debbie Guerra, SVP
and General Manager, Brazil,First Data, signing the contract.
Add to that two major world events taking place in Brazil in the next four years. In 2014, the Men’s World Cup should move more than US $55.2 billion in Brazil. And, in 2016, the Summer Olympics are expected to bring in US$14billion. These two major world events are big for the Brazilian economy and for moving electronic payments forward in Brazil.
What this means for First Data
Bancoob is the ideal bank partner for our entry into the Brazilian acquiring market due to its customer focus, culture and future growth objectives.
Bancoob serves Sicoob, the largest credit union system in Brazil, with presence in 2,200 bank branches around the country. Sicoob credit union merchant members are representative of the small and medium size businesses from rural areas, smaller cities and urban centers throughout the country. Today, this segment is not fully served with customized acquiring offerings by current market providers.
Together we’ll focus on enabling economic growth and financial inclusion for small-and-medium businesses across Brazil. We’ll also deliver simple, flexible and merchant-focused acquiring services to the Sicoob merchant base as well as to other merchants throughout the country.
Debbie Guerra is senior vice president and general manager, Brazil of First Data.