American Express cards are used in 130 countries

Privately-owned Bradesco will take over Amex's 1.2 million Brazilian customers when the deal is completed in July.

Banco Bradesco is already Brazil's second largest credit card provider with nearly nine million users.

Amex will retain its traveller's cheques business but the deal will significantly reduce its involvement in a market dating back to the 1920s.

'Important step'

Amex began offering credit cards in Brazil in the 1970s.

Under the terms of the deal, Banco Bradesco will have the exclusive right to issue cards using the American Express brand for ten years.

"The partnership represents an important strategic step for Bradesco, allowing it to expand its client base in a fiercely competitive segment," the company said in a statement.