Brazilian President Lula has signed a decree capping commissions charged to merchants on meal voucher transactions at 3.6%, reducing the payment period to 15 days, down from the current 30 days. These measures aim to reduce intermediation costs in a market estimated at 170 billion reais per year (around €28bn), and to strengthen competition within the Workers' Food Program (PAT), which covers over 22 million employees.
Dominated by Edenred, Pluxee, Alelo and VR, which together represent 85% of the market, this sector remains concentrated despite the 2022 law introducing interoperability between payment networks, which will come into effect within a year according to the decree. Portability, which would enable employees to choose their provider, has not yet been implemented. These reforms, which have been discussed for a long time, mark a turning point in the government's desire to open up a market which, to date, has been largely unregulated.
Pluxee to take legal action
In a statement released last night, Pluxee said it took note of Brazil's position on the Worker Food Program, particularly regarding merchant commission rates, reimbursement times and the processing of meal vouchers.
The measures announced, which will be rolled out in 90 days at the earliest, "differ significantly from the discussions held between the professional association and the government," the company says, adding that it is concerned about the sustainability of the PAT.
Pluxee believes that the government measures "undermine private commercial relations and restrict issuers' ability to innovate and remain competitive," and is therefore considering legal action, both independently and in coordination with the sector's professional organization.
At this stage, Pluxee has not provided any data on the negative impact of the decision, which it is taking the time to analyze.
Brazil accounts for 19% of Edenred's revenue and 28.5% of Pluxee's. Both stocks were hit hard this year when the reform plans in Brazil were announced.
