Red E

Rede S.A., historically known as Redecard, is a Brazilian payment-services business whose core activities have centered on merchant acquiring and the capture, transmission, processing and settlement of electronic card transactions. The company developed from the merchant-acquiring and payment-processing operations of Credicard, a financial-services venture created in 1970 by Citibank, Banco Itaú and Unibanco. Rede was established as a specialized acquiring company in 1996, at a time when Brazil's card market was expanding and financial institutions increasingly separated card issuing from the infrastructure used by merchants to accept payments. The business initially focused on transactions made with Mastercard and Diners Club International credit and debit cards in Brazil. It connected merchants with card issuers and payment networks, authorized and transmitted transactions, calculated and settled merchant receivables, and provided the operational infrastructure needed for electronic payments. Its role also included guaranteeing settlement to merchants under its contractual arrangements, subject to the relevant card-network and issuer guarantees. Over time, Rede broadened its merchant proposition beyond basic card acceptance. Its activities included renting point-of-sale terminals, supporting wireless and mobile acceptance, verifying checks through terminal connections, processing private-label retail-card transactions, handling benefit-card payments, and offering services related to loyalty programs. It also offered prepayment of credit-card receivables, allowing affiliated merchants to receive funds earlier than the ordinary settlement schedule in exchange for a commercial discount. Online acceptance capabilities were provided through the E.rede platform, while FoneShop enabled certain mobile and non-fixed-location merchants to use a mobile phone or adapted terminal to capture transactions. The company's corporate history was closely linked to its original consortium structure. The Redecard Consortium, led by Rede, coordinated activities associated with merchant affiliation and the processing of Mastercard and Diners Club transactions. The consortium ended on March 31, 2007, after which Redecard assumed its rights and obligations. Rede became a public company on the São Paulo Stock Exchange in June 2007, joining the Novo Mercado segment. Mastercard sold its stake in connection with the listing, Citibank later reduced and then exited its investment, and ownership subsequently became concentrated under the Itaú Unibanco Group following the merger that created that banking group. Following Itaú's public tender offer, the company was delisted in 2012 and changed its name from Redecard to Rede in 2013. The available reference material describes Rede principally as an operating payment brand and merchant-acquiring platform within the Brazilian financial-services sector. It does not provide sufficiently current information to establish the exact present legal status, corporate structure, leadership, website or complete contemporary product portfolio.

Rede's origins lie in Credicard, established in 1970 by Citibank, Banco Itaú and Unibanco. Credicard combined several functions that were still closely integrated in the Brazilian card market: it issued cards, operated a card brand and provided merchant-acquiring and payment-processing services. By 1980, it had issued approximately 500,000 cards and affiliated around 120,000 merchants. It began issuing Mastercard-branded cards in 1987 and reached roughly five million cards by 1994. In that year, it also introduced Redeshop, described in the reference material as Brazil's first debit card, giving merchants an electronic alternative to cash and checks and enabling settlement on the first business day after a transaction. In 1996, Citibank, Itaucard and Unibanco separated Credicard's acquiring and processing operations into a specialized company called Redecard, later known as Rede. Mastercard International also became a shareholder. From its formation, the company was the principal acquiring and processing platform in Brazil for Mastercard and Diners Club International credit and debit transactions. Its operating model included affiliating merchants, capturing transaction data, transmitting it for authorization, processing approved transactions and settling the resulting amounts with merchants. For a period, these operations were coordinated through the Redecard Consortium. The consortium's purposes substantially matched those of the operating company: merchant affiliation and the capture, transmission, processing and settlement of Mastercard and Diners Club transactions. Rede led the consortium and distributed results among its members according to agreed ownership and revenue-sharing arrangements. The consortium ceased operations on March 31, 2007, after which Redecard assumed its rights and obligations. The company entered Brazil's public equity market in June 2007, listing on the São Paulo Stock Exchange's Novo Mercado. This segment was associated with enhanced corporate-governance and minority-shareholder standards. The listing also marked a change in the shareholder base, because Mastercard disposed of its interest. Citibank subsequently sold part of its holding in January 2008 and left the company completely in March 2009. The creation of Itaú Unibanco through the combination of Itaú and Unibanco then reshaped control, leaving the Itaú Unibanco Group as Rede's controlling shareholder. Rede's service scope expanded beyond traditional credit-card acquiring. It processed debit transactions, including Mastercard Maestro and the Redeshop brand while Redeshop was being replaced by Maestro. It offered merchant terminal rental, including fixed and wireless devices, and terminal-based check verification linked to Brazil's SERASA system. Private-label retail cards and employee or consumer benefit-card brands such as Ticket, Sodexo and VR were also within its processing activities. The company developed RAV, a receivables-prepayment service through which merchants could accelerate settlement for a negotiated discount. E.rede supported online transactions and incorporated address and taxpayer-identification checks together with a pre-authorization period. FoneShop extended acceptance to mobile and non-fixed businesses such as delivery operators, home sellers, taxi drivers and street vendors. Additional services included prepaid mobile-phone recharging through payment terminals and Purchase & Cash, which allowed eligible debit-card users to obtain a limited cash amount when making a purchase at an affiliated merchant. These products reflected Rede's broader role as a payments infrastructure provider rather than only a card-network intermediary. Itaú later made a public tender offer for the remaining shares, leading to Rede's delisting in 2012. The company changed its name from Redecard to Rede in 2013. The supplied material does not establish a fully current legal or operating profile, so later corporate developments, current executives and present market status require verification.

1. 2013Redecard becomes Rede

   The company adopts the Rede name.

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2. 2012Delisting follows Itaú tender offer

   Itaú's public tender offer is followed by the company's delisting.

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3. 2007Consortium ends and company lists

   The Redecard Consortium ends on March 31. In June, Redecard lists on the São Paulo Stock Exchange's Novo Mercado.

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4. 2004Redeshop is acquired by Mastercard

   Mastercard International acquires the Redeshop brand, which subsequently begins to be replaced by Mastercard Maestro.

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5. 1996Redecard is created

   Credicard's merchant-acquiring and payment-processing activities are separated into Redecard, with Mastercard International becoming a shareholder.

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6. 1994Redeshop debit card launches

   Credicard introduces Redeshop, described in the reference as Brazil's first debit card.

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7. 1987Mastercard issuance begins

   Credicard begins issuing cards carrying the Mastercard brand.

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8. 1980Credicard reaches an early scale milestone

   Credicard is reported to have issued 500,000 cards and affiliated approximately 120,000 merchants.

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9. 1970Credicard is founded

   Citibank, Banco Itaú and Unibanco establish Credicard, combining card issuing, card branding, merchant acquiring and payment processing.

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A Brazilian merchant-acquiring and payment-infrastructure provider combining card acceptance, transaction processing, settlement, terminal services and ancillary merchant solutions.

• Credit-card acquiringMerchant acquiring1996

  Rede captured, transmitted, processed and settled credit-card transactions for affiliated merchants, principally involving Mastercard and Diners Club International cards in Brazil. Merchants could receive settlement under agreed contractual schedules, while card issuers authorized transactions and the relevant card networks provided network-level support.

• Debit-card acquiringPayment processing1996

  The company processed debit transactions made with Mastercard Maestro and, during the transition period, Redeshop cards. Debit acceptance provided merchants with electronically authorized payment and generally faster settlement than traditional check-based commerce.

• POS terminal rentalMerchant equipment

  Rede owned payment terminals and made them available to affiliated merchants on a rental basis. Its installed base included desktop and wireless devices, which served as the physical infrastructure for card acceptance and also supported ancillary services such as check verification and prepaid mobile recharge.

• RAVMerchant finance

  RAV allowed merchants to receive credit-card receivables before their ordinary settlement date. Rede deducted a negotiated commercial discount from the accelerated payment, giving merchants a liquidity option tied to their card sales.

• E.redeE-commerce payments

  E.rede was an online transaction-capture platform for affiliated websites and virtual stores. Its described controls included checking the buyer's address and taxpayer identification number and providing a pre-authorization window that gave merchants time to review a transaction before fulfillment.

• FoneShopMobile payments

  FoneShop extended transaction acceptance to mobile and non-fixed merchants. Through an application used on a mobile phone or compatible terminal, delivery businesses, taxi drivers, home sellers and other vendors could capture card payments without relying solely on a conventional fixed POS location.

• Benefit-card processingSpecialized payment processing

  Rede processed transactions for benefit-card programs used at participating merchants, including programs associated in the reference material with Ticket, Sodexo and VR. Restaurants and other accepting businesses could use these networks to attract customers whose purchases were funded through benefit schemes.

• 2012Accept Itaú tender offer and delistM&A

  The Itaú Unibanco Group had become the controlling shareholder after the restructuring of the original shareholder base.

  What changed. Itaú conducted a public tender offer, after which Rede was delisted.

  Aftermath. The company moved from public-market ownership into the Itaú Unibanco-controlled structure and later adopted the Rede name.

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• 2007End the Redecard ConsortiumStrategy

  The consortium had coordinated merchant affiliation and transaction-processing activities since the company's formation.

  What changed. The consortium ceased to exist on March 31, 2007, and Redecard assumed its rights and obligations.

  Aftermath. The operating company became the direct holder of the consortium's relevant activities and obligations.

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• 1996Separate acquiring from CredicardStrategy

  The founding financial institutions considered a dedicated merchant-acquiring and processing company appropriate as Brazil's card market developed.

  What changed. They spun off Credicard's merchant-acquiring and payment-processing activities into Redecard.

  Aftermath. The new company became a principal Mastercard and Diners Club acquiring and processing platform in Brazil.

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• 2013Redecard changes its name to Rede

  The company adopted the Rede name after its delisting and ownership transition under the Itaú Unibanco Group.

  Leadership change
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• 2012Rede is delisted after Itaú tender offer

  Following a public tender offer by Itaú, Rede was removed from the Brazilian stock exchange.

  M&A
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• 2009Citibank exits Rede ownership

  Citibank, an original shareholder, completed its exit from the company after selling part of its stake in 2008 and the remainder in March 2009.

  M&A
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• 2007Rede becomes publicly traded on Brazil's Novo Mercado

  Rede was listed on the São Paulo Stock Exchange and entered the Novo Mercado segment, while Mastercard sold its shareholding in connection with the offering.

  Other
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1. Rede S.A.