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CoverStory
Brazil is another promising market. Elavon Inc.
established a beachhead there in 2010, when it entered
into a merchant acquiring joint venture with a Brazilian
unit of Citicorp. In 2014, First Data Corp. introduced
Bin, an acquiring solution developed specifically
for the Brazilian market, at a cost of $150 million,
the company said. First Data partnered with a local
merchant acquirer, Bancoob, which is the acquirer of
record. Bancoob, is part of Sicoob, the largest credit
union cooperative in Brazil.
Under the partnership with First Data, Bancoob is
responsible for provisioning the necessary card scheme
licenses, and managing merchant settlement payments.
In addition to POS card capture and authorization,
Bin supports payment options unique to the Brazilian
market, such as prepayment schemes.
Brazilian consumers are not big users of credit cards,
and only the richest among them use the international
card brands. Most middle class Brazilians use domestic
cards or domestic prepaid products, neither of which
are recognized by international e-commerce sites.
"This points to an opportunity for payment enablers
who can capture payments locally and later settle up
with foreign merchants," Lindsay Lehr, Senior Director,
America's Market Intelligence, wrote in a recent paper,
Unlocking Brazil's e-commerce potential.
Value of partnerships
Partnerships are a hallmark of international
acquiring. Darren Wilson, President of EVO Payments
International LLC, said it has been a key to EVO's
success. "The strategy we have adopted is to find a
local bank that has a mainstream customer base and
partner with them," Wilson stated.
EVO provides merchant acquiring and processing
services in the United States, Canada and Europe. Over
the past three years, the company has relied on this
strategy to make inroads in several European countries,
including Germany, Spain, Poland and Ireland. "We
provide cross-border support to merchants," Wilson
said. In May 2015, EVO purchased the merchant
acquiring business of Deutsche Postbank AG and
inked a long-term referral agreement with the bank. In
June 2013, EVO purchased Deutsche Card Services, a
unit of Deutsche Bank.
Variations in market dynamics, such as consumer
preferences and government oversight also
contribute to the value of partnerships. "There are a
lot of differences between markets," Pascoulis said.
Partnering with local firms helps a company like ACI
navigate those differences.
39
Brazil is another promising market. Elavon Inc.
established a beachhead there in 2010, when it entered
into a merchant acquiring joint venture with a Brazilian
unit of Citicorp. In 2014, First Data Corp. introduced
Bin, an acquiring solution developed specifically
for the Brazilian market, at a cost of $150 million,
the company said. First Data partnered with a local
merchant acquirer, Bancoob, which is the acquirer of
record. Bancoob, is part of Sicoob, the largest credit
union cooperative in Brazil.
Under the partnership with First Data, Bancoob is
responsible for provisioning the necessary card scheme
licenses, and managing merchant settlement payments.
In addition to POS card capture and authorization,
Bin supports payment options unique to the Brazilian
market, such as prepayment schemes.
Brazilian consumers are not big users of credit cards,
and only the richest among them use the international
card brands. Most middle class Brazilians use domestic
cards or domestic prepaid products, neither of which
are recognized by international e-commerce sites.
"This points to an opportunity for payment enablers
who can capture payments locally and later settle up
with foreign merchants," Lindsay Lehr, Senior Director,
America's Market Intelligence, wrote in a recent paper,
Unlocking Brazil's e-commerce potential.
Value of partnerships
Partnerships are a hallmark of international
acquiring. Darren Wilson, President of EVO Payments
International LLC, said it has been a key to EVO's
success. "The strategy we have adopted is to find a
local bank that has a mainstream customer base and
partner with them," Wilson stated.
EVO provides merchant acquiring and processing
services in the United States, Canada and Europe. Over
the past three years, the company has relied on this
strategy to make inroads in several European countries,
including Germany, Spain, Poland and Ireland. "We
provide cross-border support to merchants," Wilson
said. In May 2015, EVO purchased the merchant
acquiring business of Deutsche Postbank AG and
inked a long-term referral agreement with the bank. In
June 2013, EVO purchased Deutsche Card Services, a
unit of Deutsche Bank.
Variations in market dynamics, such as consumer
preferences and government oversight also
contribute to the value of partnerships. "There are a
lot of differences between markets," Pascoulis said.
Partnering with local firms helps a company like ACI
navigate those differences.
39
