Food delivery giant iFood to enter the payments market war – The Brazilian Report

Brazil’s payment market is entering a new era of market fragmentation, creating opportunities for multiple players to enter the sector. This flexibility has allowed numerous fintechs to fill the gaps left by traditional financial institutions, particularly in modernization and understanding consumer payment habits.

A recent report from the Brazilian Central Bank highlights the decentralization of the payments market, with more players competing with the four largest banking institutions. Companies outside the financial sector, such as fintechs and cooperatives, are gaining prominence.

This competitive and diverse landscape has attracted new entrants to the fintech market, such as the giant food delivery app iFood. Already a pioneer in the Brazilian tech market with a valuation milestone of USD 1 billion, iFood is now expanding into the payment sector with “iFood Pago.” 

This new initiative offers financial solutions to restaurants, including credit services and its own card machine.

Launched with over 140,000 active digital accounts,…