Brazilian payment providers Vindi and Smartbill have announced that they are merging, confirming an earlier report about their integration to consolidate the market of payments focused on the service sector in Latin America.
The shareholders of both startups have approved the transaction and will continue to support the combined company, which is said to currently process more than $1 billion annually. It will now be an even bigger threat to local rivals.
Led by Rodrigo Dantas, Vindi is a Sao Paulo-based provider of subscription/recurring billing and payment solutions. Smartbill is also based in the Brazilian city and operates as a cloud-based subscription management system that allows companies of all sizes to join the subscription business model.
The two companies said that combining their forces will allow them to unlock growth potential and further extend the products and services that they offer to merchants.
The statement further noted: “The Brazilian financial environment has some particular rules. Banks are not opening their APIs, the regulations are very hard to comply with, taxes are not integrated with billing systems and recurring payments are very hard to provide, because of existing whole payment methods. Boletos (Brazilian invoice slips), fraud prevention, debit account and control delinquency are challenges to all type of companies.”