In Brazil, big retail chains Magazine Luiza and Via Varejo have developed a technology to connect directly with the emergency aid provided by the government, enabling purchases on their e-commerce channels to be paid with the assistance. As LABS reported, payments of the BRL 600,00 aid began this month and will be repeated in May and June.
Without the need for a credit card, the aid beneficiary will be able to use the virtual debit card issued by the state-owned bank Caixa Econômica Federal to make purchases on the platforms. Those enrolled in Bolsa Família social program and Cadastro Único are already account holders, while informal unbanked persons registered to receive assistance will have access to a free account. The Brazilian government has updated the forecast of potential beneficiaries for up to 75 million Brazilians, and Caixa’s current account holders with no right to the benefit who have a debit card will also be able to use it for purchases.
The beneficiaries of the emergency aid will be able to make their purchases safely. We are going to make life easier for those who don’t have a checking account or debit or credit cards.
Frederico Trajano, CEO AT Magalu, in a memo
The product portfolio of Magazine Luiza also includes grocery items – which has free shipping for all the country, regardless of the purchase value. The company has been focusing on expanding the offer of products such as diapers, detergents, laundry detergent and gel alcohol.
As for Via Varejo, its brands Casas Bahia e Extra.com are the ones accepting the social assistance for payments in its e-commerce platforms. Both online stores are already allowing such payments and have also gathered a selection of essential products for purchase.
Casas Bahia has always been an inclusive company. We were the first to give credit to Brazilians when no one in the market did. And in this difficult time that the world and country are going through, we know our responsibility as a company and, once again, we are the first to accept, in an operational way, the benefit of Caixa Econômica.
Roberto Fulcherberguer, CEO AT Via Varejo, according to infomoney
In Brazil, most retailers only accept credit cards for payment on online purchases, claiming security issues. Earlier this week, Brazil’s largest payments processor Cielo was reportedly working to convince retail chains to increase the acceptance of debit cards in online purchases, as an effort to take part in the flow of emergency funds released by the government to face the pandemic. “Out of about 55 million people who will receive the benefit, nearly 30 million are not bank account holders,” Cielo’s chief executive, Paulo Caffarelli told Reuters at the occasion.
