Shares of Brazilian card payment processors Cielo SA, PagSeguro Digital Ltd and StoneCo Ltd fell sharply on Thursday after rival Itaú Unibanco Holding SA's card-processing unit cut interest rates for small and medium-sized merchants.[SAO PAULO] Shares of Brazilian card payment processors Cielo SA, PagSeguro Digital Ltd and StoneCo Ltd fell sharply on Thursday after rival Itaú Unibanco Holding SA's card-processing unit cut interest rates for small and medium-sized merchants.
Rede, Itaú's card processor, said on Wednesday evening it would advance payments to merchants in as little as two days, compared with the usual 30-day period, charging no interest, which will increase competition in the payments sector. Analysts at Credit Suisse said in a note to clients that this payment model was likely to become"the new standard", hurting all card processors' results.