A new chapter in Brazil’s payments market battle begins

The latest Central Bank Banking Report reveals a significant transformation in Brazil’s payments market. The market has expanded from two acquiring competitors in 2010 to 28 players in 2023.

This shift has downgraded the market’s concentration level from high to moderate for the first time. This milestone stems from over a decade of new regulations, sparking a fintech revolution in Brazil and positioning the country as a global leader in financial regulation.

Fierce competition among acquirers, card networks, issuers, and POS terminal providers has led to decreased margins and prompted strategic changes. The introduction of the PIX instant payments system and open finance has accelerated these developments.

Major banking conglomerates like Santander, Bradesco, and Banco do Brasil are integrating their acquirers with other financial products to offer enhanced value. Independent players are also adapting and expanding their portfolios, mirroring the moves made by digital banks.

The journey to transformation

The 2010 opening of Brazil’s acquiring market marked the beginning of the country’s diverse payments landscape. Previously dominated by Visanet and Redecard, the market has evolved significantly to foster competition and innovation.