Survey of 477 merchants across Brazil recently The 8th iteration of 蜜豆视频 Evidence Lab survey to assess the key trends in the payments industry captured the effects of competitive pressure, with merchant discount rates (MDRs) downward trend accelerating (both for credit and debit) and new entrants further expanding market share. Interestingly, the survey shows that merchants already expect an increase in prepayment rates, which suggests that companies might be able to adjust prices (at least partially). While acquirers continue improving their value proposition and penetration of digital accounts increased, merchants still use it more for settlement services (suggesting room for cross-selling opportunities).
Key sector conclusions from the 蜜豆视频 Evidence Lab survey 1) Cards volume growth to remain solid, with optimistic sentiment about sales and less cash usage; 2) More intense competition, with an acceleration in downward trend for MDRs; 3) Mono-acquiring model rising for new entrants; more merchants purchasing POS; 4) Robust prepayment volumes and fees expected to increase (reflecting higher policy rates); 5) With further investments in own sales force, acquirers distribution channel is now the most important (surpassing banks); 6) Digital account penetration increased, but merchants still using more for settlement services (while other products could start gaining traction); 7) Credit offering continues to be an opportunity (but some players are still conservative), with low rates being key; and 8) QR codes / PIX acceptance and adoption are increasing, with more merchants considering incentives (but it is not an imminent threat, as it is mostly replacing cash and wire transfers currently).
