Banco Santander has completed its exit from its joint processing venture in Brazil, Fidelity Processadora e Servicos (FPS).
The bank, which has its own credit card processing unit, has been rationalising its business in Brazil since acquiring ABN AMRO’s operations in the country and merging it with its existing operations there.
Santander’s withdrawal from the partnership means Banco Bradesco’s ownership of the joint venture has increased to 49 percent while FIS, a US-based processor, maintained its 51 percent share.
Bradesco and FIS also signed a binding memorandum of understanding (MOU) for a 10-year deal which would see FPS process Bradesco’s 14 million bankcards by the end of 2010. It will take the total number of cards processed on behalf of all FPS clients to 40m.
“FIS has had a long-established card presence in Brazil and this expanded relationship with Banco Bradesco provides us with a significant opportunity to cultivate more business in a region poised for continued growth,” said Frank Martire president and chief executive officer of FIS.