Visa Sells 10% Stake in CBSS for $100M

by Mercator Advisory Group 0

Visa announced that it has sold a 10% stake in CBSS, a prepaid issuer in Brazil, to local banks Banco do Brasil and Bradesco. CBSS is a major player in the prepaid card market in Brazil, where employees receive prepaid lunch voucher and cards as part of their benefits. The sale is expected to bring Visa about US$100M.

According to the article,

Visa’s wholly-owned subsidiary Visa International will continue working with CBSS to offer prepaid cards and cards used to deliver government benefits in Brazil, one of Visa’s fastest-growing markets, the company said.

Ruben Osta, Visa’s country manager for Brazil, said the growth of prepaid cards is crucial to Visa’s business strategy. He called the investment “an example of Visa’s long track record in employing strategic investments to help drive growth in emerging categories.”

The sale is subject to regulatory approval by Brazil’s Conselho Administrativo de Defesa Economica.

The payment card market in Brazil has undergone major changes in recent years. For example, Visa and MasterCard’s exclusive acquiring contracts with their respective local partners have ended due to regulatory changes. That has opened up the local acquiring and processing market that attracts a lot of interest from both domestic and international players.

See the original article here: http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9L02NL82

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