Banco Bradesco Stock- Cielo to expand partnerships with Brazilian banks and retailers
SAO PAULO (Reuters) – Cielo SA CIEL3.SA, Brazil’s largest payment processor, said on Thursday it will partner with banks and retailers to sell debit and credit card processing machines instead of renting them, in the face of increasing competition from newcomers.
Chief Executive Eduardo Gouveia told journalists that Cielo may partner with Banco do Brasil SA B(BA)S3.SA and Caixa Econômica Federal, in addition to a partnership already formed with Banco Bradesco SA BBDC4.SA.
Cielo’s rivals such as PagSeguro Digital Ltd PAGS.N have been gaining market share in card transactions by selling instead of renting out card processing machines.
Cielo’s first-quarter net income missed analyst estimates on Wednesday as its points of sale declined about 14 percent from a year earlier.
Cielo shares fell 4.3 percent on Thursday morning to 18.33 reais.
($1 = 3.55 reais)
Reporting by Aluísio Alves; Writing by Carolina Mandl; Editing by David Gregorio