Mastercard Offers Brazilian Acquirers 50% Payout and Services in Will Bank Dispute

Mastercard is offering Brazilian acquirers a 50% payout and services in the dispute over Will Bank, according to sources cited by Bloomberg on August 14. The proposal comes after Mastercard initially offered to pay half the amount demanded by the affected firms, who were impacted by the collapse of Will Financeira, also known as Will Bank.

The liquidator and regulator are working closely with Mastercard to minimize the impact on the payments ecosystem, and Mastercard expects to receive the remaining funds from the liquidator before settling the dispute. The January collapse of Will Bank left Mastercard responsible for paying approximately $950 million to other parts of the network, but it had already settled about half of that amount.

Mastercard was required to pay for bills due the month following Will Bank's liquidation, while acquirers claimed responsibility for the full amount. The Brazilian central bank had halted Banco Master's operations and appointed a liquidator to handle creditor claims and asset sales just a week before the Will Bank collapse. Mastercard had requested that some of Brazil's largest payment processors pay half the cost of its losses from the failed bank and its FinTech, which issued cards using Mastercard's network.