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SAO PAULO, Aug 20 (Reuters) - Elo, the first Brazilian credit card brand, on Thursday signed an agreement with Discover Financial Services to allow Elo cardholders to make international purchases and withdraw cash on the U.S. company's payment network.
Terms of the agreement, signed in São Paulo by executives of both companies, were not disclosed. The partnership between Elo and Discover will focus initially on enabling Elo cards to be accepted in more than 185 countries though Discover's network, the world's third largest.
The agreement should help Elo, founded in 2011 by three of Brazil's top four commercial banks, to allow users to settle e-commerce transactions from Brazil or use their cards while traveling overseas. The brand currently has 7 percent of Brazil's card market.
Elo wants to grab 15 percent of card transaction volumes within the next few years, Chief Executive Officer Eduardo Chedid said at the event.
The São Paulo-based company will help Discover implement its payment solution D-PAS and work with the U.S. company on new payment products for the coming years.
"It's not only about capturing an increasing number of travelers who will be able to use their card of choice, but also a significant number of e-commerce clients who are willing to use their Elo card to make purchases globally," Chedid said.
State-controlled Banco do Brasil SA and Caixa Econômica Federal as well as private sector lender Banco Bradesco SA are Elo's controlling shareholders. (Reporting by Guillermo Parra-Bernal; Editing by Jeffrey Benkoe)