Sweden-based iZettle is adding Brazil to the list of markets where its mobile card reader is available through an exclusive partnership with Banco Santander. A few weeks ago, iZettle, whose card reader is available for Apple iPhones and iPads and various devices running on Google’s Android operating system, expanded outside Europe for the first time when it opened for business in Mexico.
From Mobile World Live:
The card reader in Brazil is priced at BRL99 ($41) but, as a promotional offer, is freely available for anyone who signs up before 30 September.
“The launch of a solution which offers secure and flexible mobile transactions with cards is something new in the country and will allow thousands of small entrepreneurs to have access to a service previously reserved for larger businesses,” said Cassius Schymura, payments services director at Banco Santander do Brazil.
As the exclusive banking partner of iZettle in the country, Banco Santander is looking to expand its portfolio of services for the SME market.
“Brazil is the world’s second largest card payment market, and the opportunity for iZettle to equip individuals and small businesses with card payment acceptance is immense,” said Magnus Nilsson, iZettle co-founder and chairman of iZettle do Brasil. He pointed out that 99.7 percent of companies in Brazil are SMEs (small and midsize enterprises) and micromerchants.
There are no upfront or monthly fees with iZettle. Instead, iZettle merchants in Brazil pay a 5.75 percent fee on each transaction. This is a higher rate, however, than the 2.75 percent commission that iZettle’s merchant customers pay in Europe.
The market for mobile card readers in Europe quickly is becoming saturated, and vendors supplying the devices are looking to branch out into regions where competition has yet to emerge and they can grow. Benefitting from the potential expansion in card acceptance through iZettle’s readers are the major card brands, including MasterCard and American Express, which are investors in the company. Expect iZettle’s rate in Brazil to drop as competition in that emerging market builds.
Click here to read more from Mobile World Live.