BankTech

The First Network-to-Network Partnership in South America Live: Elo and Discover Mark First Transaction

MEDICI

The first network-to-network partnership in South America goes live after the original announcement in 2015. With the first transaction performed by Elo and Discover, Elo opens Discover Global Network for Brazilian travelers. As we have covered the company's strategy in the past, Discover’s network of networks strategy makes it more global and much bigger than it appears.

{Press Release} RIVERWOODS, Ill. & SÃO PAULO - Elo, the first 100% Brazilian card brand, conducted its first international transaction today in the U.S. on the Discover Global Network. This transaction marks the official acceptance of the Elo Global Card in the U.S. Elo Global Cards are issued by Banco do Brasil, Bradesco and Caixa Econômica Federal, and will be used for international purchases and cash access outside of Brazil on the Discover Global Network, which includes Discover Network, Diners Club International, PULSE and affiliated networks.

The milestone first transaction was made by Elo president Eduardo Chedid, and observed by Elo board members, Alexandre Rapaport of Bradesco Bank, Mario Neto of Caixa Econômica Federal, Rogerio Panca of Banco do Brasil S.A., and Discover’s president of payment services Diane Offereins.

“Brazilians continue to increase their international travel and we are excited to help them make purchases while traveling in the U.S. and elsewhere throughout the world,” said Diane Offereins, president of payment services for Discover. “We have worked with Elo to ensure those with Elo Global Cards can enjoy the benefits of global acceptance on our network while traveling outside of Brazil.”

“The possibility of using our new credit card outside of Brazil is very important for customers with higher purchasing power, and therefore, we are ready to meet the needs of such clients in a comprehensive way through our partnership with Discover,” said Eduardo Chedid, president of Elo.

Elo Global Cards were created to meet the demand of high-spend travelers and online shoppers. Brazilians spent $17.3 billion in 2015 when traveling outside of Brazil, with the US as one of their top destinations1. Brazilian ecommerce cross border spend reached $18 billion in 2015, with U.S. based companies accounting for 72 percent of those purchases, and is expected to reach $25 billion by 20181.

The Discover Global Network is the third largest payments network in the world2 and includes 38 million merchant acceptance locations and over 1.9 million ATM cash access locations across 185 countries and territories. The network includes alliance partnerships in China, Europe, India, Japan, the Middle East, Puerto Rico, Serbia, South Korea and Vietnam, among others.

About Elo

Elo is the first 100% Brazilian Credit Card flagship. Created in the late 1960s, Elo returned to the market and was officially presented in 2011, result of the merger of the three largest banks in the country (Banco do Brasil, Bradesco and CAIXA). Aiming to be a robust and comprehensive brand, Elo offers a wide range of products and services aimed at all audiences, in credit, debit, prepaid and benefits categories. Accepted all over the country in over 2.4 million establishments, Elo has approximately 95 million issued cards.

About Discover

Discover Financial Services (DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts and certificates of deposit through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit.

1 US Travel and Tourism, Brazil Profile 2014 Euromonitor, Paypers Cross Border Ecommerce in Brazil, 2015 and eMarketer.com, 2015

2 Retail Banking and Research, August 2015

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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