Mastercard is offering Brazilian merchant acquirers 50% of the amount they are seeking following the collapse of Will Financeira, also known as Will Bank, a fintech linked to failed Banco Master. The proposal also includes several years of services such as fraud protection, according to a report cited by PYMNTS.
Mastercard Seeks Settlement With Brazilian Acquirers
The dispute stems from the January 2026 collapse of Will Bank, which issued cards operating on Mastercard’s network. Mastercard was reportedly left responsible for approximately $950 million in payments to other participants in its network following the fintech’s failure.
The payments giant has already settled roughly half of that amount but is disputing the remaining portion with Brazilian merchant acquirers. Mastercard argues that its obligation relates to bills due in the month following Will Bank’s liquidation, while the acquirers maintain that Mastercard should cover the full amount.
Mastercard has now proposed paying half of the amount demanded by the affected acquirers, alongside additional services designed to strengthen their payment operations.
Will Bank Collapse Raises Regulatory Questions
The dispute comes amid changes to Brazil’s payment regulations. The country’s central bank introduced rules making payment networks responsible for ensuring that transactions are paid to receiving users. Mastercard has argued that the new requirements should not apply to the Will Bank failure because the fintech collapsed before the payment companies’ compliance deadline.
The collapse of Will Bank was connected to wider problems at Banco Master, whose operations were halted by Brazil’s central bank, with a liquidator appointed to manage creditor claims and asset sales.
The case highlights the financial and regulatory risks that payment networks and fintech companies can face when a major card issuer fails, particularly as Brazil continues to strengthen oversight of its rapidly expanding digital payments ecosystem.