US Bancorp and Citi are selling their Brazilian card payment processing but loss making joint venture Elavon do Brasil to a local company. The two US banks, which were partners in Elavon for five years, confirmed the transaction in separate statements but did not specify the value of the sale or other details. U.S. Bancorp owns 50.9% of Elavon, with Citigroup holding the remainder. The buyer, São Paulo-based Stone Pagamentos, agreed to replenish Elavon’s capital and provide additional funds for growth as part of the transaction, according to two sources with direct knowledge of the deal. Elavon failed to gain traction in Brazil’s burgeoning $250 billion payment processing market, which is dominated by Cielo and Rede, a unit of Itaú Unibanco Holding.
