Back to articles
We are excited to share that Runa has landed in Brazil. This expansion allows Runa customers to tap into Brazil’s booming economy, extending their market reach and connecting with a diverse and growing consumer base. This means more opportunities for growth and higher potential revenue.
With Runa, businesses can save on transaction costs through fee-free payouts and ensure fast, hassle-free currency conversion to Brazilian Real at competitive rates. Recipients can immediately receive and spend payouts at 4,000 merchants on the Runa Network, including 70 in Brazil.
Why Brazil?
Brazil is a major economic powerhouse in Latin America, boasting a projected GDP of US$2.331 trillion in 2024, which makes it the world's eighth-largest economy. The country’s increasing digitalization and economic diversification are fueling growth in the middle class, creating a larger, tech-savvy consumer base with disposable income. For businesses, this translates to a fertile market for digital products, services, and innovative payment solutions.
Key insights:
- Gift Card Market Growth: The value of Brazil’s gift card market is expected to reach a staggering US$10.1 billion by 2028, up from US$6.5 billion in 2023.
- Brazil is the largest economy in Latin America: Ecommerce is growing rapidly at 14.3%, expective to exceed US$200 billion by 2026.
- Consumer Behavior: 30% of Brazilians shop online each week.
Market trends boosting gift card usage
Several market and behavioral shifts are laying the groundwork for massive growth in B2C payouts, rewards, and incentives—with gift cards as a central element of this evolution.
Brazil's ecommerce boom
With improved internet access, Brazil's digital economy is booming, significantly contributing to the country's GDP. As the leader in Latin America's e-commerce market, experts forecast that two-thirds of Brazilians will shop online by 2027, offering businesses a massive and engaged online market to target.
Cash is no longer king
As Brazil rapidly transitions from cash to digital payments, businesses stand to benefit immensely from faster, easier, and more cost-effective transactions.
Moving to digital payments also promotes financial inclusion. With 187.9 million internet users in Brazil, many people now have access to online financial services for the first time, enabling their participation in the economy and expanding the customer base for businesses. By adopting digital payment methods, businesses in Brazil can streamline operations, cut costs, reach more customers, and improve overall security.
Brazil's fintech boom is fueling the digital revolution
Brazil is a nation at the forefront of fintech innovation. From the surge in real-time payments to the explosion of digital wallets and the continuous emergence of new fintech companies, the landscape is transforming at a remarkable pace. This vibrant ecosystem empowers consumers, businesses, and the nation to embrace a future built on digital convenience and financial inclusion.
The rising popularity of gift cards as a digital payout option
As Brazil's digital transformation and economic growth accelerate, gift cards have emerged as a highly versatile solution for various use cases.
Employee incentives and rewards
The corporate adoption of the gift card is one of the most prominent factors providing positive growth momentum to the industry with companies increasingly making use of gift cards to offer rewards and incentives to their employees.
Recognizing the shift in employee expectations and the growing competition for talent, Brazil is witnessing a significant rise in employee rewards and recognition programs. Companies are moving beyond traditional salary structures to create more holistic offerings. This includes flexible benefits packages, opportunities for professional development, and, increasingly, reward programs that leverage the convenience and popularity of gift cards.
Gift cards allow employees to choose from a wide range of products and services, catering to their individual preferences and fostering a sense of personalization. This trend aligns perfectly with Brazil's booming digital economy and growing preference for digital transactions. As the Brazilian economy continues to thrive, attracting and retaining top talent will be crucial, making a focus on rewarding and recognizing employees, often through gift cards, a strategic priority for businesses.
Disbursements and remittances
Brazil's cross-border payout and remittance industries play a significant role in the country's economic health. In 2023, international inbound remittances reached nearly US$5 billion, while outbound remittances totaled US$2.23 billion. Digital remittance platforms are gaining traction due to their speed, security, and often lower fees.
However, the cost landscape for remittances presents a complex picture. While the cost of receiving money in Brazil has decreased significantly, sending money abroad has become more expensive, rising by 40% between 2020 and 2021. This increase can be attributed to factors like foreign exchange rates and regulations, despite the efficiency gains of FinTech platforms.
While not a mainstream solution, gift cards have emerged as a method for cross-border remittances in some instances. A sender in a foreign country could purchase a gift card from a major retailer with a presence in Brazil. They then send the card details (e.g., gift card number and PIN) to the recipient in Brazil. The recipient can then use the gift card to make online purchases from the retailer's website or potentially sell it on a digital marketplace for local currency, albeit likely at a discount.
Sales promotions
Many merchants are also harnessing the opportunities of gift cards to drive customer engagement, loyalty, and sales. Whether it's incentivizing purchases with spending rewards, boosting brand awareness through contests, or fostering loyalty with programs that reward repeat customers, gift cards offer a versatile solution. They also cater to the rise of e-commerce by providing a convenient and personalized digital gifting option.
Furthermore, merchants can leverage gift cards to promote specific products or services, encouraging customers to explore new offerings within their portfolio. In essence, gift cards are a strategic tool for merchants navigating Brazil's dynamic digital landscape, allowing them to connect with customers and achieve their marketing goals.
It’s time to tap into the booming Brazilian market
Runa is your partner for making the post of this enormous opportunity around payouts, rewards and incentives in Brazil. Elevate rewards, incentives and payouts in Brazil. Convert funds to Brazilian Real instantly and choose from a wide range of global brands and local payout options recipients love.
Runa offers the most popular merchants in Brazil
- Extra.com: A giant online marketplace attracting 26 million monthly visitors.
- Havaianas: The leading flip flop brand in Brazil, synonymous with summer style.
- Carrefour: Brazil's biggest supermarket chain, a one-stop shop for groceries.
- IFood: The go-to platform for online food ordering and delivery in Brazil.
- Fogo de Chao: A renowned Brazilian restaurant chain with over 70 locations.
- Americanas: A nationwide department store chain in Brazil, offering a wide variety of products.
- Nintendo: A world-famous gaming company, beloved for its consoles and games.
- Pague Menos: One of the largest Brazilian pharmacy chains is a one-stop for healthcare needs.
- Globo+: A subscription service offering 130+ channels of TV shows & entertainment.
- McDonalds: The iconic global fast-food chain, serving up craveable favorites.
Get started today.
