Since the second half of 2022, several companies have received authorizations to act as payment transaction initiators (ITP). In the case of Belvo, a Latin American platform of Open Finance APIs, the green light from the monetary authority came in September last year - you read it first on Finsiders, included.
This Thursday (2), Belvo presents its new product to the market, using the ITP license, which is part of phase 3 of Open Finance. The proposal is to use the benefits already available from Pix - an instant payment method that already has more than 144.6 million registered users - such as cost and speed in moving resources, to further reduce friction when closing an e-commerce purchase or making an investment, for example.
In practice, it is possible to skip steps such as logging in to one of the financial institutions where you have an account, copying the bar code and making the confirmation, before returning to the store's site, for example. When you complete the purchase and select Open Finance as payment method, the choice of bank is made directly on the site.
Then, all you have to do is confirm the amount and payment details, and you are redirected to the bank chosen by the customer. In the institution's environment, the user confirms the amounts and returns to the e-commerce page, finalizing the operation. For this whole process to take place, it is necessary to authenticate the login and password with a face ID or fingerprint on smartphones, as is done for internet banking.
According to Ana Luiza Martins Castro, strategy leader for Open Finance and Payments at Belvo in Brazil, compared to Pix 'copy and paste', the tool can increase the conversion of online stores by 20%, reducing the number of dropouts.
"In Pix 'copy and paste', the user usually goes through 10 to 11 screens (purchase steps). In our payment initiation, that drops to six," says the executive, in an exclusive interview with Finsiders. "The beauty of the payment institution being in the scope of Open Finance is to use all available means to initiate payments," she adds.
The Belvo spokeswoman also says that the fintech solution started rolling out in January. For now, one of its clients already uses the functionality and four others are in the integration process. Today, the service is being tested by Bipa, a platform for buying and selling cryptocurrencies.
According to Ana Luiza, the company has been introducing its products as Open Finance advances. "As much as we create our products, we need to move along with the Central Bank," she says.
In Belvo's pipeline is an improvement for payments for business accounts. "A company that needs to pay 500 suppliers can't do it all at once. There is a niche for payments between companies and large batches in business," he says.
Another solution considered necessary is payments without the need for redirection (redirect), allowing a company or supplier to schedule a payment in an automated way, without automatic debit.
She also says that the newly released solution to accelerate Pix can be used in three other situations in the market.
In wallet requisitions, to bring the money into the digital wallet and then do the conversion of the product; in collections, by sending the data for Pix payment from the initiation, avoiding the traditional waiting time for bill clearing; and in transfers, to move values between different banks of a single financial institution - something that favors a financial application, for example.
Belvo says there have been no "relevant updates" in relation to the number of clients and institutions since last year. Until October, the portfolio had 200 companies, such as Mercado Livre, Rappi, Conta Azul, and Mobills (from Santander). And connection with more than 60 institutions, among them the giants Banco do Brasil (BB), Bradesco and Itaú, and digital banks such as Nubank and Inter.
In other markets, the company has also been advancing. In Colombia, the company has operated through PSE, a private network of banks, since there is no model like Open Finance. In Mexico, the company has obtained an IFPE (license similar to ITP), which opens new possibilities in the payments segment. The current stage on Mexican soil is the adaptation of the flow.
The list of ITPs authorized by the Central Bank has been growing in recent months, and the trend is for this segment to gain strength as Pix and Open Finance evolve. According to the most recent update of the Open Finance Governance Structure, there are 17 institutions able to operate the service. The list ranges from banks such as Banco do Brasil, Bradesco, Itaú and BTG to fintechs such as Celcoin, Efí (formerly Gerencianet), among other names.
Some of Belvo's direct competitors have also been moving in the direction of payments via Open Finance. Quanto, for example, was ready to operate with payment initiation in September last year. Klavi is waiting for authorization from the Central Bank to operate with this modality.
Original Article in Finsiders
Since the second half of 2022, several companies have received authorizations to act as payment transaction initiators (ITP). In the case of Belvo, a Latin American platform of Open Finance APIs, the green light from the monetary authority came in September last year - you read it first on Finsiders, included.
This Thursday (2), Belvo presents its new product to the market, using the ITP license, which is part of phase 3 of Open Finance. The proposal is to use the benefits already available from Pix - an instant payment method that already has more than 144.6 million registered users - such as cost and speed in moving resources, to further reduce friction when closing an e-commerce purchase or making an investment, for example.
In practice, it is possible to skip steps such as logging in to one of the financial institutions where you have an account, copying the bar code and making the confirmation, before returning to the store's site, for example. When you complete the purchase and select Open Finance as payment method, the choice of bank is made directly on the site.
Then, all you have to do is confirm the amount and payment details, and you are redirected to the bank chosen by the customer. In the institution's environment, the user confirms the amounts and returns to the e-commerce page, finalizing the operation. For this whole process to take place, it is necessary to authenticate the login and password with a face ID or fingerprint on smartphones, as is done for internet banking.
According to Ana Luiza Martins Castro, strategy leader for Open Finance and Payments at Belvo in Brazil, compared to Pix 'copy and paste', the tool can increase the conversion of online stores by 20%, reducing the number of dropouts.
"In Pix 'copy and paste', the user usually goes through 10 to 11 screens (purchase steps). In our payment initiation, that drops to six," says the executive, in an exclusive interview with Finsiders. "The beauty of the payment institution being in the scope of Open Finance is to use all available means to initiate payments," she adds.
The Belvo spokeswoman also says that the fintech solution started rolling out in January. For now, one of its clients already uses the functionality and four others are in the integration process. Today, the service is being tested by Bipa, a platform for buying and selling cryptocurrencies.
According to Ana Luiza, the company has been introducing its products as Open Finance advances. "As much as we create our products, we need to move along with the Central Bank," she says.
In Belvo's pipeline is an improvement for payments for business accounts. "A company that needs to pay 500 suppliers can't do it all at once. There is a niche for payments between companies and large batches in business," he says.
Another solution considered necessary is payments without the need for redirection (redirect), allowing a company or supplier to schedule a payment in an automated way, without automatic debit.
She also says that the newly released solution to accelerate Pix can be used in three other situations in the market.
In wallet requisitions, to bring the money into the digital wallet and then do the conversion of the product; in collections, by sending the data for Pix payment from the initiation, avoiding the traditional waiting time for bill clearing; and in transfers, to move values between different banks of a single financial institution - something that favors a financial application, for example.
Belvo says there have been no "relevant updates" in relation to the number of clients and institutions since last year. Until October, the portfolio had 200 companies, such as Mercado Livre, Rappi, Conta Azul, and Mobills (from Santander). And connection with more than 60 institutions, among them the giants Banco do Brasil (BB), Bradesco and Itaú, and digital banks such as Nubank and Inter.
In other markets, the company has also been advancing. In Colombia, the company has operated through PSE, a private network of banks, since there is no model like Open Finance. In Mexico, the company has obtained an IFPE (license similar to ITP), which opens new possibilities in the payments segment. The current stage on Mexican soil is the adaptation of the flow.
The list of ITPs authorized by the Central Bank has been growing in recent months, and the trend is for this segment to gain strength as Pix and Open Finance evolve. According to the most recent update of the Open Finance Governance Structure, there are 17 institutions able to operate the service. The list ranges from banks such as Banco do Brasil, Bradesco, Itaú and BTG to fintechs such as Celcoin, Efí (formerly Gerencianet), among other names.
Some of Belvo's direct competitors have also been moving in the direction of payments via Open Finance. Quanto, for example, was ready to operate with payment initiation in September last year. Klavi is waiting for authorization from the Central Bank to operate with this modality.
Original Article in Finsiders