Brazil postpones new rules for opening meal voucher market

MercadoLibre

02/05/2023 13:41

BRASILIA, May 2 (Reuters) - Brazil's government has
dealt a setback to new entrants hoping to capture a larger share
of the concentrated meal voucher market by delaying regulations
for its long-awaited opening by one year. 
    The move marks a blow to companies looking to benefit from a
law passed in September 2022 that allows workers to move their
meal credit between providers and spend it at any participating
restaurant. 
    The "portable" and "interoperable" system was initially
scheduled to begin in May, but the new rules were still pending
regulation. However, an executive order published on Monday in
the official gazette established they will be valid from May 1
of next year.
    The 150 billion reais ($30 billion) voucher market is
currently dominated by Sodexo  EXHO.PA , Edenred subsidiary
Ticket  EDEN.PA , and privately held rivals Alelo and VR. 
    But recent regulatory changes have opened up opportunities
for technology-enabled competitors to enter the market,
including delivery company iFood, Mercado Libre's  MELI.O 
payments unit Mercado Pago, fintechs Caju, Swile and Flash, as
well as payment company PicPay.
    As Reuters previously reported, the Finance Ministry and the
central bank have been at odds over how to regulate the new
system, with the central bank resisting due to a lack of staff
and fears that transferring voucher credits could create new
barriers to entry by requiring substantial investments in
operations. 
    A source familiar with the discussions, who requested
anonymity due to the talks' private nature, said the
postponement was the outcome of government ministries being
unsuccessful in persuading the central bank to implement the
regulation.
    The central bank did not respond to a Reuters request for
comment.

($1 = 4.9984 reais)

 (Reporting by Marcela Ayres; Editing by Chizu Nomiyama)
 ((marcela.ayres@thomsonreuters.com; +55 11 5047-2444;))