Network, the Ita offers little machine with single price to attract small retail

SAO PAULO-the net (ex-Redecard) consolidated their rental card machines (POS, the acronym in English) and also the discount rates (MDR, the acronym in English) in a monthly only, in an attempt to reach the small shopkeeper and, therefore, retain it. The expectation of the company, according to the Director of network Products, Frederick Adebayo, is to double in two years, his current base of small and medium-sized businesses who already have the solution. He does not reveal, however, the size of the database.
In practice, instead of paying the rent and even the discount rate based on sales made with cards, the retailer chooses a plan with unique value from R$ 109.00 per month. The price will depend on the selected machine, with or without wire, card sales volume, ranging from 1000 to 10000 real real, and yet the period within which you want to receive, in two or 30 days.
With these options, the network of Itaú Unibanco, believes he can meet, according to Souza, until 80% of your customer base, mainly small and medium-sized retailers who, although they have smaller ticket sale, generate margins better than the large trades. He says that the network has had "huge demand" for the product, one price, but that additional impetus will come from other sales channels. That''s because the solution will be offered in Ita agencies and partner banks. Until then, the solution was sold only by the merchant acquirer and payment processor.
For now, only the network offers accreditation service with monthly fee only in Brazil and which does not vary according to the billing and the discount rate. This initiative, combined with other actions, makes art of the company''s strategy of trying to recover the lost market, mainly for GetNet, Spanish Santander, with the opening of the Brazilian sector, in 2010. Since then, according to analyst reports, the network has seen its share decline in nine percentage points. Ended March with 35.5% share, up from 36 percent three months earlier. At the end of 2010, had 44.5% of the market, which is led by the Cielo, which owns 53.4% in the sector.
Souza explains that the idea of the network to create a product with a price survey along to retailers in a project that began nearly two years ago. "We realize that customers have many doubts in relation to the rates they paid. With a single price, we simplify this matter. The retailer pays the same amount at the end of the month, which brings a huge facility for retailers, "said the Executive, in an interview with Broadcast.
According to him, the new product does not raise the profitability of network attached to the small and medium retail, but, to make the everyday life of this audience, allows a more long-term relationship, which itself is more profitable, since it makes traders concentrate their operations in the slots of the acquirer. In parallel, the network offers from that month accreditation service combined with banking solutions, following the same strategy of integrated offer already paved by GetNet, and also adopted by Cielo, controlled by Bradesco and Banco do Brazil. The company ended March with 1.755 million machines.