STXNEWS LATAM-Banco do Brasil, Bradesco, Cielo to launch e-commerce venture

Wed Apr 16, 2014 9:15am EDT

Banco do Brasil SA, Banco Bradesco SA, two of Brazil's largest commercial lenders, and card payment processor Cielo SA agreed to create a new payment settlement system for e-commerce transactions, according to a securities filing on Wednesday.

The venture, known as Stelo SA, will provide so-called digital wallet services by which it expects to help consumers make their on-line purchases using credit and debit cards as well as prepaid vouchers, the filing said.

Stelo will soon begin testing its platform with 200,000 clients and expects to be operating fully during the second half of the year, the statement said.

Banco do Brasil and Bradesco are key shareholders in Cielo, Brazil's largest card payment processor. Both banks have worked in a series of ventures seeking to tap Brazil's $400 billion card payment processing industry through their joint investment holding company Cia Brasileira de Soluções e Serviços SA.