Brazil considers capping meal voucher fees, Pix system deposits doubtful, say sources

Reuters

30-04-2025

BRASILIA, April 30 (Reuters) - Brazil's government is considering capping card processor fees and shortening settlement periods to cut intermediation costs in the country's multi-billion-dollar meal voucher market, three sources with knowledge of the government's plans said.
The sources, who requested anonymity to discuss private talks, said the idea of transferring funds directly to workers through Brazil's widely popular Pix instant payment system had been discussed but is unlikely to move forward because of strong opposition from restaurant associations and meal voucher companies, which act as intermediaries.
The move comes as the government tries to curb food inflation that has weighed on President Luiz Inacio Lula da Silva's approval ratings, though it continues to delay regulations needed to open up the concentrated meal voucher market under rules passed by Congress in 2022.
The Labor Ministry did not respond to a request for comment, and the Finance Ministry declined to comment.
The Pix alternative had been reported by local outlets last week, sending shares of meal voucher providers Edenred (EDEN.PA), opens new tab, which owns Ticket, and Pluxee (PLX.PA), opens new tab, which owns Sodexo, sharply lower.
Alongside privately held Alelo and VR, these companies control roughly 85% of Brazil's meal voucher market.
Direct Pix deposits would effectively eliminate the need for intermediaries in a market that moves around 170 billion reais ($30 billion) annually under Brazil's Worker Food Program (PAT), created in 1976 to offer tax incentives to companies covering their employees' meal costs.
Speaking to state media on Wednesday, Labor Minister Luiz Marinho also appeared to dismiss the Pix-based alternative.
"The program needs to be preserved. Many ideas emerged, and some would have essentially destroyed it. So those were completely ruled out," Marinho said.
Without providing details, the minister said there would be changes to fees, which he described as "very high."
The sources said the government is considering a cap on the MDR (merchant discount rate) — the fee charged to merchants per transaction. Government estimates seen by Reuters show restaurants pay about 8% more on sales with meal vouchers than with credit cards.
Marinho also flagged potential changes to settlement periods, acknowledging controversy over how long it takes for funds to reach restaurants after being paid to the voucher companies. In the public sector, he said, contracts often stipulate 30-day payment terms.
"Contracts need to be adjusted to drastically shorten that period," he said.
Marinho said the government is weighing the issue carefully and could announce a decision in May, although no formal decree is currently in the works.
The Brazilian Chamber of Worker Benefits (CBBT), which represents newer companies, said there is no evidence that changing fees or settlement terms would lower food costs for workers. It instead called for the long-delayed implementation of a 2022 law that opened the rule for a single "interoperable" network for all accredited players.
The measure, which is also supported by supermarkets, would enable open access to major voucher networks and end exclusivity in participant access.
But Lula's administration has delayed regulations needed to implement the changes, including portability rules that would allow users to transfer meal credits between providers.
($1 = 5.6635 reais)