Why Itaú Unibanco is bypassing credit cards at online checkouts
Itaú Unibanco has launched Itaú Pay, a direct-from-app checkout system bypassing traditional card networks to boost merchant transaction approvals.
Global payment networks like Visa and Mastercard are facing a quiet rebellion in Latin America's largest economy as financial giants bypass traditional credit cards entirely. On October 30, 2026, Itaú Unibanco, Brazil's largest private bank, launched "Itaú Pay," a direct-from-app payment button designed to streamline online checkouts and keep transactions entirely within its own ecosystem.
The new system allows users to complete online purchases directly inside the bank's mobile super app without typing card numbers, copying codes, or generating virtual cards. By routing transactions directly through its internal network, Itaú Unibanco functions as both the card issuer and the payment processor. This integration is powered by its merchant acquiring subsidiary, Rede, which holds a major share of the Brazilian payment processing market.
For merchants, the primary appeal of this closed-loop system is transaction approval. According to an official press release from Itaú Unibanco on October 30, 2026, online transactions in Brazil frequently face high rejection rates due to fraud concerns or insufficient credit limits. The bank estimates that by using Itaú Pay, merchants can increase transaction approval rates by up to 10 percentage points and significantly cut checkout times compared to the traditional card checkout process.
This direct-checkout push is part of a broader corporate rivalry unfolding under a highly stable regulatory framework overseen by the Central Bank of Brazil. The central bank has spent years promoting open finance and digital integration to lower transaction costs. Itaú Pay represents a legacy banking giant's direct counteroffensive to digital-first fintech competitors like Nubank, which introduced its own cardless checkout product, "NuPay," in 2022.
Itaú Pay debuted through an initial partnership with regional online travel agency Decolar. According to Itaú Unibanco's launch announcement, the bank plans to expand the payment option to other major retail and service platforms in the coming weeks, including pharmacy chain Raia Drogasil, car rental company Localiza, and cross-border payments processor EBANX.
Market Context
For international investors tracking the financial services sector, Itaú Unibanco Holding S.A. trades on the New York Stock Exchange under the ticker ITUB. The financial institution represents a major component of broad Latin American equity indices and exchange-traded funds, alongside its regional digital competitor Nu Holdings Ltd. (NYSE: NU).
