Hypercom Corporation (NYSE:HYC) today announced a restructuring of its Latin American operations with the establishment of two new regional headquarters in Mexico City and Brazil designed to bring the company closer to customers and prospects for its innovative electronic payment technologies.
The two offices replace Hypercom's former Latin American regional headquarters in Miami, positioning the company to strengthen its market penetration throughout the region.
The Mexico City headquarters will serve not only Mexico but Central America and the Andean countries of South America (Colombia, Venezuela, Ecuador, Peru, Bolivia, and Guyana), extending the strong presence in Mexico that has been created since the establishment of Hypercom de Mexico in 1990. Managing director for the new regional operation is Juan Suayfeta, who previously served Hypercom de Mexico in the same capacity.
The new Brazil headquarters will cover the South Cone region of South America, which includes Brazil, Chile, Argentina, Paraguay and Uruguay. Reinaldo Assis, formerly general manager of Hypercom de Brasil, has been promoted to managing director of the South Cone region.
"Latin America has played a significant role in Hypercom's business over the years, particularly in Mexico, Brazil and Argentina. This reorganization will enable us to use our existing infrastructure and customer relationships as a springboard to expanding our business in those areas as well as extend our reach to other countries in the region," said Guilherme Blumenthal, Executive Vice President, Sales & Operations, Hypercom Corporation. "We are dedicating additional resources to the area because we believe there are substantial business opportunities for our payment terminals and related services."
In Mexico, for example, the Association of Mexican Banks recently announced plans to spend up to $300 million over the next three years on the expansion of the point-of-sale network, in a combined effort with the Mexican government to encourage the use of debit and credit cards in Mexico. Card payments today account for only 2% of Mexican purchases, making that country a largely untapped market. The banks plan to install POS terminals in small businesses with fewer than five employees at no charge to the merchant in an effort to increase the number of terminals from 175,000 today to 475,000 by 2010.
"Hypercom already has a solid sales and support organization in Mexico, and we intend to leverage that to take full advantage of the terrific market opportunities here as well as in the nearby countries served by our new Mexico City headquarters," said Suayfeta. "We expect our broad product portfolio and our reputation for dependability to serve us well in our efforts to increase our regional market penetration."
"Creating a separate headquarters for the South Cone region is a logical step, both geographically and as a means of building on our established operations in Brazil and Chile," said Assis. "With ongoing business in those two countries and new developments such as the recovery of Argentina's economy, we believe that this area holds great promise as a source of new revenues for Hypercom."