Published by Global Banking and Finance Review
Posted on January 7, 2026
By Dimitri Rhodes
Jan 7 (Reuters) - French voucher and benefits company Pluxee warned on Wednesday that Brazil's upcoming cap on merchant fees could halve its revenue in the country by 2027, as it reported a 9% organic rise in first-quarter sales.
The group confirmed the 2026 financial goals it had cut in November amid an evolving regulatory framework in Brazil, one of Pluxee's largest markets, following a decree signed by President Luiz Inacio Lula da Silva.
The measures in Brazil are set to take effect in mid-February and cap the fees that merchants pay voucher providers at 3.6%.
For Pluxee, those fees will drop to 2% once it fully implements its new payment model in Brazil, finance chief Stéphane Lhopiteau told analysts in a call. This is expected to occur in mid-May, he said.
"This represents a significant downside ... in terms of revenue from merchants," Lhopiteau said.
Pluxee expects an around 50% revenue drop in Brazil by next year, he said, although it aims to keep the contribution from its core profit margin unchanged by reducing costs from certain marketing services.
Peer Edenred warned in November it would cut its 2026 profit guidance if the planned changes in Brazil were to take effect.
Benefits providers like Edenred and Pluxee are increasingly relying on geographies like Latin America to drive profits, as they cope with slowdowns in their main business regions amid rising economic uncertainty.
Pluxee's first quarter, which started on September 1, marked the first time when Latin America, of which Brazil is a major contributor, surpassed Continental Europe as its largest market in terms of sales.
The economic and political environment in France is pushing many companies, notably among small and medium-sized enterprises, to be more cautious with recruitment or even reduce workforce, CEO Aurélien Sonet told analysts.
These trends have led many Pluxee clients to hold back on purchasing decisions, slowing down the contract signing cycle, he added.
The group's revenue grew to 308 million euros ($359 million) in the first quarter of its financial year, just above analysts' consensus, as it brought in new customers and retained existing ones.
($1 = 0.8553 euros)
(Reporting by Dimitri Rhodes in Gdansk, editing by Anna Pruchnicka and Milla Nissi-Prussak)
Organic growth refers to the increase in sales and revenue generated by a company through its own operations, without relying on mergers or acquisitions.
Financial objectives are specific goals set by a company to achieve desired financial outcomes, such as revenue targets, profit margins, or return on investment.
Client retention is the ability of a company to keep its existing customers over a period of time, often measured by repeat purchases or continued engagement.
Total revenue is the total amount of money generated by a company from its business activities, typically calculated before any expenses are deducted.
Client growth refers to the increase in the number of customers or clients a company serves, often indicating business expansion and market success.
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