FILE PHOTO: A man walks past an Itau Unibanco logo in Rio de Janeiro, Brazil September 6, 2017. REUTERS/Pilar Olivares/File Photo
SAO PAULO (Reuters) – Brazil’s biggest private sector lender Itaú Unibanco Holding SA said its card processor unit Rede will continue to be profitable despite a decision to stop charging interest rates and repaying merchants using its machines in two days, a bank executive said on Thursday evening.
Rede CEO Marcos Magalhães told Reuters Itaú decided to advance payments to merchants in as little as two days, compared with the usual 30-day period, in order to close the gap with international practices. The decision is effective May 2 and includes zeroing interest rates.
The executive, declining to elaborate, said Itaú hopes to increase businesses with