Brazil’s Meal Voucher Market Is Worth 150 Billion Reais a Year, and Two More Banks Just Walked In
BTG Pactual has entered Brazil's R$150 billion corporate benefits market with a single card for food and meal vouchers, with C6 Bank close behind. The post Brazil’s Meal Voucher Market Is Worth 150 Billion Reais a Year, and Two More Banks Just Walked In appeared first on The Rio Times .
Brazil's meal voucher market is valued at roughly R$150 billion annually, and two banking institutions have entered the competitive space. Previously, Brazil witnessed an oligopoly in meal and food vouchers, with employers providing two separate allowances: vale-alimentação for supermarkets and vale-refeição for restaurants. Employees typically carried two cards, creating a need for consolidation.
BTG Pactual, a Brazilian bank, launched a single Mastercard that combines both voucher types, addressing the market gap. The card operates as both a physical and virtual Mastercard, supporting contactless payments in shops, online transactions, and digital wallets. This innovation is facilitated by BTG's Banking app, which houses the balance, transaction history, and provides an employer management platform within the company's corporate ecosystem.
The regulation of the market in Brazil, which began in the 1970s, initially created a closed environment with limited issuers and acceptance networks. However, recent changes have allowed banks to enter the market by issuing Mastercards, thereby gaining advantages over competitors. The government capped merchant discount rates at 3.6%, interchange fees at 2%, and enforced settlement within 15 days, alongside promoting interoperability across networks.
The introduction of a single card addressing both meal voucher needs changes the competitive dynamics, as banks can now offer benefits as a retention product, making it difficult for incumbents to compete on price. As voucher usage is widespread in Brazil, the practical implications of this transition include employers reevaluating their benefits contracts, potentially resulting in price adjustments.
The market is now estimated to be worth around R$150 billion, or US$29 billion, based on current exchange rates. Leading issuers include Alelo, Ticket, Pluxee (formerly Sodexo), and VR, with C6 Bank also preparing to join the competition.
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