Elo stirs up competition with Visa and MasterCard

The advancement of flag of Elo cards as payment instrument in transactions typically sites is a key player in the expansion project of the brand by its three major emitters, Banco do Brazil, Bradesco and Caixa. Food stamps card and meal in the corporate seal of the BNBDES, the Agrocard (intended for agribusiness) or Construcard (for construction and reform) there's no reason for banks to have costs of royalties with the dominant international brands, Visa and MasterCard.
This is one of the keystones of the Elo project. The economy that local banks will have to pay royalties was one of the pillars for the heavy investments made in the flag by the partners. As progresses, the Link becomes an asset of the institutions to negotiate with foreign flags. If on the one hand, banks pay for use of the trademark on the other are remunerated by the exchange rate on each transaction incident captured on us retail cards issued.
"The levels of negotiation with the international flags are going to change. In some cases, are already changing, but the contracts are winning slowly over the next few years, "says an Executive at a large retail bank. "Everybody's going to reposition, whether the banks of Elo, other than those of the Hyper", summarizes the Executive.
Launched in October, the flag hyper, of Itaú Unibanco, seeks new issuing banks and, for the moment, serves only for purchases on credit. Gradually, will dig space on card base of Itaú, which today is 75% composed by MasterCard.
Visa invests in its power of innovation along the banks and in the tradition of their technological network to remain relevant in the Brazilian market. Percival Jatobá, Senior Executive Director of international flag products, cites the tools that the company has to reduce fraud in e-commerce shopping as a competitive differentiator. Another example is the work that the flag did in developing the Visa Charge Card, which replaces the Charter-freight among truckers. "A network like ours, with 2.2 billion cards, not overnight," he says.
To Jatobá, in terms of cost and scale, it makes no sense to have a banner for local and other modalities for international. Currently, only the foreign Visa and MasterCard allow purchases abroad. According to data from the Central Bank, in 2012, latest data available, the base of active cards of Visa pointed soft spot in relation to the beginning of the year (see chart on this page).
The BNDES card, developed at first by Banco do Brazil and by Visa, serves as an example for the advancement of Elo. Today, the BB-and later the Bradesco-began to issue the card with the national flag.
In addition to the credit, debit and multiple (which brings together the two functions in a single card), the Bradesco began issuing the corporate card with flag and promises to Link to the BNDES. "The most difficult phase of Elo was the past," says Alexander Rappaport, Bradesco's cards. "Now the stage is going to scale to the flag."
Already the box will imprint the banner Link on your Construcard, the card that allows access to the credit line for the purchase of building materials and the like that the Bank grants. Today, the Construcard has no flag. "We will launch the multiple card Link in the first quarter. It took a little more time for fitness that we had to do in our ATMs. "
On Allele, prepaid cards, the brand has been gaining space Link. The company, formerly CBSS who administered the Visa cards Worth when I was Visa in society, also belongs to BB and Bradesco. "My preferred flag is the missing link," says Eduardo Gouveia, Chairman of Allele, which took office in September. "The link is extremely well accepted and only had a few problems of establishments to accept at first," he says. "In most cases, the problem is not that the establishment does not accept the flag, but the food stamp mode." The Allele began issuing Elo in early 2013.
George ponders that there is still room to long-time partner, Visa, in its portfolio. "Still send food and meal vouchers with Visa flag, depending on the customer's needs. We did a recent project with the International Olympic Committee in which the cards issued are Visa ", says the Executive. Labor Department data indicate that the valleys of Allele serve about 4.6 million workers.