Business

Cielo will seek to monetize customer base in 2020

Cielo card machine. Photo: Rafastockbr/ Shutterstock
  • The company will not bring a client at any cost anymore;
  • Cielo wants to have “muscle” to compete in the long run, not in the short run.

Cielo’s president, Paulo Caffarelli, stated to the Brazilian newspaper Valor Econômico that the its main goal this is to seek the monetization of its customer base in 2020.

In the last two years, the card issuer, whose main shareholders are the banks Bradesco and Banco do Brasil, has been focused on protecting its market share. According to the executive, Cielo was not “in the game” of the accreditation market and, therefore, came to lose 20 percentage points of market share among retail customers.

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As a result of this and the price war of this payment segment, Cielo profited BRL 1.6 billion last year, down 49.7% compared to 2018. Looking at 2019 as a whole, though, the company managed to stop losing market share, presenting two quarters of growth.

In other words, gaining customers became more expensive for Cielo, and the coming quarters will not be different. That’s why the company wants to hold prices and profit from its 1.6 million customer base in 2020.

Caffarelli told Valor that the company will not bring a client at any cost anymore, and that he company wants to have “muscle” to compete in the long run, not in the short run.