Credicard and Elavon Partner to Launch Merchant Payments Solutions Company in Brazil

Dec 13, 2010 (Close-Up Media via COMTEX) —
Credicard, a subsidiary of Citigroup Inc., and Elavon, a subsidiary of U.S. Bancorp and global payments provider, have signed a binding agreement to establish a joint venture creating a merchant services company that will offer a full suite of payment solutions to the Brazilian marketplace.
In a release, the Companies said that with growth in consumption and credit volume in Brazil, the new company will compete in a growing market that demands scale, experience, service quality and innovation. Combined with Credicard’s market expertise and brand recognition, Elavon will deliver a vigorous processing platform, financial efficiency,payment solutions and secure point-of-sale devices for mobile acceptance environments.
“Since 2005, Brazil’s credit card market has grown at a 20-plus percent rate annually,” said Mike Passilla, President and CEO of Elavon. “We are excited to further drive this market growth by combining our best-in-class products, services and capabilities with Credicard’s market leadership position to offer new operational efficiencies and highly reliable solutions for small and national-level merchants in Brazil.”
For Gustavo Marin, CEO of Citi Brazil, the joint-venture represents an important step in the Organization’s business strategy. “Citi has always been at the forefront in the development of Brazil’s financial industry. With the creation of this joint-venture, we advance even further our strategy in Brazil’s retail market, offering a new option for consumers, as well as businessmen and merchants and, consequently, strengthen our growing position in the consumer credit segment,” concludes Marin.
“Credicard has been in the cards market for over 40 years, and this is the right time for us to return to the acquiring market. This alliance will be further leveraged by Credicard’s processing and technological know-how, and will enable us to once again transform Brazil’s payment acceptance market,” said Leonel Andrade, president of Credicard. Andrade also highlighted the importance of Brazil for global players in this segment, which were able to enter the country after it opened up its acquiring market in the second half of the year, placing Brazil for the first time at par with the service level seen around the world.
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