Demarest Advogados has advised the cooperative bank Banco Cooperativo do Brasil S/A in setting up a long-standing partnership with the US gigantic electronic payment acquirer company First Data, in a deal that closed on January 9, 2014.
Under the partnership, Bancoob and First Data --- which will operate in Brazil through its local subsidiary --- will jointly develop an acquiring operation in Brazil, encompassing credit and debit card transactions throughout the Brazilian market. The partnership inaugurates both of parties' activities in the Brazilian acquiring market.
The operations will be primarily based on the Acquiring Licenses granted to Bancoob by global flags, while First Data will carry out processing related services, including capture and transmission of the payment transactions. Both parties will be responsible for the merchant enrollment and provision of certain services, as applicable.
With the new activities, Bancoob will offer its cooperative associates (both individuals and legal entities) opportunities to gain access to the electronic payment market with a number of advantages.
The structure of the partnership between Bancoob and First Data is a very innovative one, with no existing parallel in the local electronic payment market. Due to the innovation of the partnership model, the definition of the most suitable legal structure for the operations and its governance aspects was very challenging.
Another relevant aspect refers to the alignment and compliance of the new operation structure to the newly enacted set of rules governing the Brazilian electronic payment mechanisms under Provisional Measure No. 615 of 2013 (subsequently converted into Law No. 12,865 of 2013), which empowered the Brazilian Monetary Council and the Central Bank to regulate such industry.
Counsel to Bancoob
In-house counsel - Ricardo Belízio de Faria Senra
Demarest Advogados - Partner Fabio Braga and associate Marcelo Ikeziri
Counsel to FD Brazil
In-house counsel - Gustavo Dias
Pinheiro Neto Advogados - Bruno Balduccini and Leonardo Cruz
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.