‘Redecard, the merchant’s friend’
Redecard S.A. is a Brazilian company that is present throughout Brazil with 1.145 million POS terminals distributed in 100% of the municipalities with electric power and telecommunications. It is considered one of the world’s ten largest electronic payment companies, and is among the the top 20 most liquid companies in Ibovespa (the São Paulo Stock Exchange’s Index), with a market value of R$ 15 billion*. GRI 2.1, 2.2, 2.5, 2.6, 2.8 and 3.6
The Company carries out the capture, processing, transmission and settlement of credit and debit card transactions made by consumers during the course of their purchases. As a multi-brand acquirer, Redecard is one of the leaders of the Brazilian electronic payment industry. At the end of 2010, the Company was licensed to process 22 brands**, the largest portfolio in the Brazilian market.
Redecard’s main activities are: rental of point of sale (POS) electronic equipment to merchants; the discount rate on the value resulting from sales with debit and credit cards; prepayments of receivables to merchants from credit card sales (RAV); check verification services; and the capture and transmission of transactions carried out with vouchers and private label cards. GRI 2.7 and 2.8
For the second consecutive year, it was the only company in the electronic payment industry to be included in the investment portfolios of the Dow Jones Sustainability Index and the Business Sustainability Index (ISE) of the São Paulo Stock Exchange. GRI 2.10
Redecard is a publicly traded company. The Company’s headquarters is Avenida Marcos Penteado de Ulhôa Rodrigues, 939, Loja 1 – 12th, 13th and 14th floors, in the municipality of Barueri, São Paulo. GRI 2.3, 2.4 and 2.6
*Base value at 30/12/2010
**Visa, Hipercard, China Union Pay, Sorocred, Coopercred, Sicredi and Avista
The Company’s history dates back to the 1970s. It was set up according to Brazilian Corporate Law for Publicly-Held Companies in a partnership with Citibank, Itaucard and Unibanco that founded Credicard; the activities of this company included those of a credit card brand, an issuer and of a merchant acquirer. In 1987, the Company began to issue MasterCard® branded cards and launched the Brazilian market’s first debit card-brand, called Redeshop®.
In 1996, the controlling shareholders decided to specialize in merchant acquiring and payment processing services and founded Redecard, by spinning off these activities from which maintained the issuance of Credicard. In the same year, MasterCard International® also became a shareholder in Redecard. Since then, Redecard became the main merchant acquirer and payment processor for MasterCard® and Diners Club International® branded credit and debit cards in Brazil. GRI 2.5 and 2.6
In June 2007, Redecard was listed on the São Paulo Stock Exchange – BM&FBovespa, with its shares being listed on the New Market (“Novo Mercado”), a segment that is reserved for companies that are committed to differentiated practices in terms of the relationship with minority shareholders and the highest level of corporate governance that is found in the Brazilian capital markets.Upon the listing, MasterCard sold its stake in the Company. In January 2008 Citibank sold part of its stake and exited the Company entirely in March 2009. Consequently the Company underwent a shareholding restructuring. As a result of this, the Itaú Unibanco Group, which had recently been created by the merger between these two banks, became Redecard’s controlling shareholder.
Redecard has always had a multi-brand profile and has always valued free competition in order to be able to offer its services in a democratic way to its Clients. For this reason, it never signed any exclusivity contracts with any credit, debit or voucher card brand. With the opening up of the market on July 1 2010, Redecard began to capture debit and credit transactions of the world’s most widely accepted brand, namely Visa, which paved the way for the Company to strengthen its position in parts of the country where it previously had a limited presence. During the year, Redecard also signed partnership deals for the capture of a further six brands: Hipercard, China Union Pay, Sorocred, Coopercred, Sicredi, and Avista. Redecard’s portfolio reached a total of 22 brands* in 2010, making it the largest in the Brazilian market. The new partnerships added even more value for Redecard Clients, which began to benefit from the acceptance of regional and international brands, resulting from domestic as well as foreign tourism. The acceptance of the new international brands becomes even more significant in light of the fact that Brazil will be hosting the World Cup and the Olympic Games, which will bring yet another group of consumers to Brazil. GRI 2.2 and DMA-PR
*Visa, Hipercard, China Union Pay, Sorocred, Coopercred, Sicredi and Avista