iZettle Launches in Brazil

Following the Mexico launch two months ago, iZettle and its banking partner Santander are now targeting small businesses and individuals in fast-growth BRIC nation Brazil.

iZettle is initially offering iOS and Android users the opportunity to accept Chip & signature payments using the device attached via the headphone jack. iZettle will take 5.75 per cent of each transaction – greater than the charges outlined for Mexican users and the 2.75 per cent taken in the EU – on up to $3,000 worth of transactions per day. The card reader is free until 30 September and a Chip & PIN reader that works with bluetooth is also on the way. Individuals must has a Facebook account in order to sign up.

Smartphone usage in Brazil has almost doubled since last year, growing 13.8 per cent to 26.3 per cent, according to Google’s Our Mobile Planet, although it’s not clear how many Android or iOS users are out there.

The amount of Brazilians who dont access traditioanl banking services – so are unlikely to have a Chip & PIN card – is close to 40 per cent according to IPEA, an economic think tank in Brazil, with many opting to use carrier billing via their mobile provider. Mobile penetration in Brazil last year was 125.2 per cent, according to the World Bank.