FIS™ (NYSE: FIS), one of the world's largest providers of banking and payments technology, today announced that it has completed a new 10-year agreement with Banco Bradesco and the company's card processing joint venture, Fidelity Processadora e Servicos S.A. (FPS). Under the terms of the agreement, FPS will process and support Banco Bradesco's private label, Visa® and MasterCard® portfolios through 2020.
FPS is the leading third-party card processor in Brazil and provides Brazil's most comprehensive range of card processing services including call center management, back-office support, risk management and collection services. FPS currently supports more than 40 million card accounts in Brazil, including over five million prepaid cards.
"This long-term agreement further signifies our commitment to the Brazilian marketplace and the enthusiasm we share with Banco Bradesco regarding the outlook for additional growth opportunities in the region," said Gary Norcross, chief operating officer, FIS.
Brazil is the growth leader among emerging markets, with an average annual estimated gross domestic product (GDP) growth of 5 percent over the next five years. FPS is well-positioned to serve this market, having grown the number of cards on file by 37 percent per year over the past five years. During this same time period, credit card outstandings in Brazil more than doubled and analysts predict this growth trend to continue as credit and debit card usage as a means of payment has steadily increased among members of the country's less affluent consumers.
"Supporting the consumer and commercial credit card market is of great strategic importance to our growth strategy," said Arnaldo Vieira, executive vice president, Banco Bradesco. "Our relationship with FIS allows us to not only support Brazil's high-growth card market, but it also positions us to diversify our products in order to service other card holders throughout the region."