(Adds Santander exec quotes)
By Carolina Mandl
SAO PAULO, Aug 1 (Reuters) - Banco Santander Brasil SA launched a service on Thursday that allows small merchants to capture payment transactions through its card processor company GetNet without buying the bank’s card reader machine.
The bank targets nearly 4 million clients that currently use their own card reader machines or those made by rivals. GetNet aims to gain between 300,000 and 400,000 new clients through this migration.
By allowing small merchants to move to GetNet after installing an app and connecting a mobile phone to the card reader machine, Santander intends to slash a barrier to entry.
“After acquiring a card reader machine, small merchants resist to move to a different card processor,” GetNet Chief Executive Pedro Coutinho told journalists.
Clients who migrate to GetNet will pay 2% in each credit and debit card transaction.
Santander Brasil’s goal is to bring new clients to the bank, not only to GetNet.
Santander’s moves come amid a fierce competition in the card processing sector, as newcomers such as PagSeguro Digital Ltd and StoneCo Ltd forced traditional companies to cut prices and launch new services.
GetNet’s market share fell in the second quarter to 11.5% from 12% in the first three months of the year. Still, Coutinho said the company maintains its target of reaching 14% by December, although it does not intend to reduce profitability.
Reporting by Carolina Mandl; Editing by Susan Thomas