By Brazil Stock Guide – XP Inc. (NASDAQ: XP) on Tuesday entered Brazil’s merchant acquiring market with the launch of XP Empresas Pay, a payment terminal designed for small and medium-sized enterprises (SMEs) and middle-market clients.
The solution was developed in partnership with Fiserv (NYSE: FI) through its Clover platform, which will provide the infrastructure for payment acceptance, transaction routing and processing.
XP also introduced the XP Empresas Visa Infinite corporate credit card, offering no annual fee, up to 1.2% Investback on credit card purchases and the option to increase credit limits by pledging clients’ investment portfolios as collateral. Both products will be rolled out gradually to XP Empresas clients starting in the third quarter.
The move broadens XP’s strategy to become the primary financial partner for SMEs by integrating payment acceptance, receivables, lending, cash management and investments into a single platform.
The company estimates Brazil’s merchant acquiring market processes approximately R$ 4 trillion ($720 billion) in total payment volume annually.
The expansion places XP in more direct competition with established payment providers including Stone, PagBank, Mercado Pago, Cielo, Rede and Getnet. XP did not disclose targets for payment volume, customer adoption or the expected financial impact of the initiative.
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