Brazil's Bold Move to Slash Meal Voucher Costs

Brazil's Finance Ministry has introduced new measures to reduce meal voucher market intermediation costs. The initiative aims to save approximately 8 billion reais annually by capping merchant fees at 3.6% and reducing settlement periods to 15 days.

In a significant economic move, Brazil's Finance Ministry announced measures designed to trim intermediation expenses within the nation's meal voucher sector. This strategy is projected to save the country around 8 billion reais each year.

The reforms, revealed on Tuesday, will impose a cap on the fees that meal voucher companies can charge merchants, setting it at 3.6%. Previously, some charges far exceeded this limit, putting financial strain on participating businesses.

Additionally, the settlement periods will be shortened, requiring transactions to be settled within 15 days instead of the previous 30-day term. This change is expected to improve cash flow and operational efficiency for merchants across Brazil.

(With inputs from agencies.)