Banco Santander (Brasil) SA is offering a new service enabling small merchants to process payments through its Getnet Adquirencia e Serviços para Meios de Pagamento SA subsidiary without using the bank's own card reader machine, Reuters reported.
The move, which comes amid intense competition in Brazil's card processing market, aims to attract new clients to both Santander and Getnet.
Getnet hopes to entice between 300,000 and 400,000 new clients by allowing small merchants to switch to Getnet after installing an app and connecting their card machines to a mobile phone.
"After acquiring a card reader machine, small merchants resist to move to a different card processor," Getnet CEO Pedro Coutinho told the press.
Getnet's market share declined to 11.5% in the second quarter from 12% in the first quarter. However, the company is sticking to its goal of reaching 14% by December without lowering profitability, Coutinho said.
Santander Brasil acquired full control of Getnet earlier in 2019.