At first glance, it may seem easiest to enter the Brazil market using your current U.S. or European acquirer to sell cross border. Although you may see some traction with this strategy, you can improve your results even more by taking a domestic approach.
There are two common ways to enter Brazil using a domestic payments strategy: build your own payments program and establish individual relationships with local institutions, or partner with an established onshore acquirer. Either strategy will open your business to a larger number of online shoppers.
Some Brazilian credit cards are restricted from cross-border transactions. Because of this restriction, merchants will experience higher conversion rates when processing domestically.
When processing payments through a domestic payment program you’ll be able to transact payments in preferred methods only local merchants can process:
When a purchase is made through an offshore acquirer the end consumer is charged an additional IOF (Imposto sobre Operações Financeiras) tax. Consumers will see the tax on their banking statement from their issuing bank as an additional 6.38 percent charge.
Full name: Federative Republic of Brazil
Size rank: 5th largest country in world
Average age: 30
Official language: Portuguese
Currency: Brazilian Real (R$)
GDP: $2.422 USD (2013 est.)
GNI per capita: $10,720 USD
Age 18-24: 18 percent*
Age 25-34: 30 percent*
*This online population represents more than 40 percent of the total in Latin America
Whether you have an established Brazilian entity or not, Digital River provides cost-effective and customized payment programs through our local remittance, local reseller and local gateway solutions. We offer the ability to process or accept onshore payments by connecting you with our local acquirers, domestic cards and alternative payments.
This solution manages financial transactions within the country, even if the goods are shipped from elsewhere. This approach has higher authorization rates, allows the use of domestic credit cards and local payments to process transactions in the local currency.
This option leverages Digital River’s business infrastructure and expertise to accelerate time to market, increase revenues and enhance customer satisfaction while simultaneously shifting compliance, tax and legal obligations to Digital River. This allows you to receive all the benefits of a locally optimized ecommerce setup while avoiding any associated liabilities.
This is a good option for retailers who have an established local entity of their own. Digital River World Payments acts as the service provider to connect merchant’s ecommerce transactions to a bank or acquiring network. We simplify the payments activity locally and globally by connecting you with the two major acquirers in Brazil: Cielo and Rede.
Regardless of whether you have a Brazilian entity or not, Digital River World Payments can provide a direct connection to our partner acquirers Cielo and Rede. We also provide access to domestic cards Visa, MasterCard, Hipercard, ELO, Hiper. Installments and alternative payments such as Boleto Bancário are also available. Our business models can support your business needs today—and tomorrow.