- In practice, Visa is the second card company to work with Caixa;
- Through the partnership, the North American card network will have access to around 30% of the public bank’s customer base.
According to the Broadcast column of the newspaper O Estado de S.Paulo, the Brazilian public bank Caixa Econômica Federal has just closed the first partnership of its card arm, with Visa. According to the newspaper, in the same way as it has been doing in the insurance area, the public bank is structuring a new holding company focused on payments, and intends to take this new business to the stock exchange. In Caixa’s statement to investors, no further details about the agreement were given.
In practice, Visa is the second card company to work with Caixa. Through the partnership, the North American card network will have access to around 30% of the public bank’s customer base–the other 70% must have Elo cards, a network of which Caixa is a partner, together with Bradesco and Banco do Brasil.
In 2019, according to a balance sheet released this week, Caixa ended the year with a base of 109.3 million cards, which generated the equivalent of almost BRL 211 billion in financial volume last year.
According to the newspaper, Visa would have paid a billionaire amount for the partnership. In the insurance area, for example, Caixa has secured BRL 9.5 billion for the coming years with the partnerships already signed.
The partnership make sense for Visa, which lost market share from 2016 onwards. More than facing Mastercard, however, the company has said several times that it wanted to be seen as a source of payment solutions by institutions, fintechs and companies in general. The partnership with Caixa may be a sign that the plan worked.