Mastercard is reaching out to Brazil's largest payment processors to share the burden of losses after the collapse of Banco Master SA and its fintech subsidiary Will Bank. The card network covered approximately R$2.5 billion ($440 million) in unsettled merchant payments following Banco Master's extrajudicial liquidation by the Central Bank of Brazil on November 18, 2025.
Will Bank, which issued Mastercard-branded credit cards to lower-income consumers, left behind roughly R$5 billion in unpaid obligations. Mastercard stepped in during the first 30 days, covering half of those liabilities.
Now Mastercard is negotiating cost-sharing agreements with major payment processors to manage ongoing liabilities. It has also seized collateral, including a stake in Banco de Brasilia (BRB), and is selling portions to recoup losses. The company is pursuing reimbursement through the court-appointed liquidator.
For investors, the key is recovery: the combination of seized assets, liquidation proceeds, and any cost-sharing will determine how much of the R$2.5 billion becomes a permanent loss versus a temporary cash outlay.