News

MasterCard, Itaú Unibanco ink network deal

Under a new 20-year agreement, the companies will establish and operate a new electronic payments network in Brazil.

March 16, 2015

Itaú and MasterCard have signed a 20-year agreement under which the companies will establish and operate a new electronic payments network in Brazil.

According to a press release, Itaú will issue payment solutions including credit, debit and prepaid cards as part of the newly created payments network, and focus on enhancing the efficiency of their payment value chain. For its part, MasterCard will be responsible for managing the operations of the new network and transaction routing.

"This strategic alliance will allow us to focus on growing the issuing and acquiring operations, especially as it relates to the new payments network," said Itaú Unibanco Executive Director Milton Maluhy Filho said in the announcement. "This will offer access to new payment technologies, benefit from economies of scale and efficiency, and capitalize on MasterCard's experience in managing leading payment brands," He said that Itaú will continue working with other networks to offer commercial and cobranded cards for the consumer."

Itaú Unibanco is one of the world's largest banks, with nearly 5,000 branches and 30,000 ATMs in Brazil and operations in 19 countries throughout the Americas, Asia and Europe.

The strategic agreement is subject to approval by regulatory authorities involved.