Categories: Legal

Brazil Regulator Dismisses Itau Unibanco’s Appeal In Antitrust Case

Itau Unibanco Holding, Brazil’s largest lender, lost its appeal related to an antitrust case.

Earlier this year, Itau announced it would prepay small- and mid-sized merchants in two days after credit card sales with no interest rates, as long as the merchants receive all payments in a checking account in the bank. In October, Brazilian antitrust regulator Cade said the bank’s move stifled competition in the medium term, and just rejected an appeal on the case, determining that Itau cannot order merchants to have checking accounts at the bank as a condition for pre-payment. If the bank does not comply with the decision, it will have to pay a 250,000 reais ($59,574) fine per day.

But Itau said in published reports it will continue the stipulation because it obtained an injunction earlier this month allowing it to do so. The bank added it practices are no different than its rivals.

In May, the bank announced that it was launching a new QR code-based payment system called Iti, which will connect merchants and customers to each other. It can be used by both customers and non-customers of the institution. Merchants who use the service will pay a 1 percent fee per transaction to receive payments right away. The fee is cheaper than that of many current card processors, and the app doesn’t require a merchant to buy a card reader.

The CEO of Itaú’s card processor Rede, Marcos Magalhães, said the new service will attract a number of small merchants who don’t need customized services. The service is aimed at all Brazilians, regardless of income bracket, and can even be used by people with no bank accounts, since Iti also acts as a digital wallet with no fee.

And last year, Itaú Unibanco Holding added Apple Pay functionality. Brazil was the first South American country to support Apple Pay.

Get our hottest stories delivered to your inbox.

Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.

——————————

New PYMNTS Study: Subscription Commerce Conversion Index – July 2020

Staying home 24/7 has consumers turning to subscription services for both entertainment and their day-to-day needs. While that’s a great opportunity for providers, it also presents a challenge — 27.4 million consumers are looking to cancel their subscriptions because of friction and cost concerns. In the latest Subscription Commerce Conversion Index, PYMNTS reveals the five key features that can help companies keep subscribers loyal despite today’s challenging economic times.

Recent Posts

SEC Probes Timing Of Eastman Kodak’s Announcement Of $765M Loan

Eastman Kodak’s surprise announcement of plans to reinvent itself as a drug manufacturer has run afoul of the U.S. Securities…

15 mins ago

Intuit Inks Deal To Purchase Order Management Provider TradeGecko

Intuit, maker of QuickBooks, has inked a deal to purchase inventory and order management technology provider TradeGecko. The deal is…

32 mins ago

Booking.com To Trim Employee Roster By 25 Pct Globally

Booking Holding Inc., the Connecticut-based company that owns travel website Booking.com, plans to reduce its workforce by as many as…

49 mins ago

Grab Launches Microinvestment Solution, Consumer Loans, BNPL Plans

Grab Financial Group (GFG), a Southeast Asia financial technology (FinTech) and ridesharing company, is expanding its reach with the announcement on…

1 hour ago

The State Of Main Street In 2020’s Second Half

The first half of 2020 was a tough time to run a small business on Main Street as stay-at-home orders…

2 hours ago

Today In Payments: Amex Grows BNPL Options; Facebook Unveils Commerce Accelerator Plans

In today’s top news, American Express has unveiled a new payment option, and Facebook has revealed plans for a Commerce…

2 hours ago