BoaCompra is a payment platform that enables worldwide merchants to access emerging markets by offering local payment methods. Covering over 140 different payment methods across all major countries in Latin America, BoaCompra is part of PagSeguro PagBank – a provider of fintech solutions focused primarily on consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil. In August 2020, BoaCompra released BoaCompra Payout Solution for Brazil, an all-in-one API solution that enables global companies to send instant payouts to Brazilians.
What can you tell us about the current cross-border payments ecosystem in Brazil, with a special focus on the way international payouts are handled by local payment facilitators, banks, and the regulatory environment? What are the main challenges that this geography faces when trying to streamline this process?
Over the last years BoaCompra has noticed a growing demand for Payout capacity in the cross-border payments market: in a global economy like the current one, companies need solutions that enable them to send money from anywhere in the world to a local market and in their customers local currency. There is no need to say that international payouts should be sent in a fast, easy and convenient way for both merchants and their recipients.
However, most market solutions available today do not meet those requirements: sending payouts is often a very complex process involving bureaucratic procedures of cross-border transfers, such as conversions, fees and compliance requirements. Due to that, and other system inefficiencies, international money transfers usually take two to three business days to be sent, which forces merchants and beneficiaries to take up extra fees to go through with the operation.
Amidst this reality, BoaCompra Payout Solution was launched to provide a disruptive experience for both merchants and recipients, by sending payouts to beneficiaries in Brazil instantly through a digital account, without the complexities of international payments. There is also a bonus for payees, since we will be connecting them to the whole PagBank ecosystem, a top digital bank experience.
How does BoaCompra solution differentiate from other similar offerings internationally? What are the most relevant benefits of introducing a new payout solution through which global companies can send instant payouts in Brazil?
There are some key benefits that highlight BoaCompra Payout Solution among other solutions available on the market today.
To start, BoaCompra Payout Solution sends money transfers instantly to recipients’ PagBank digital account. The fact that money is transferred to them in local currency within minutes after the payout was requested represents a giant benefit compared to the markets’ typical two to three days to make the same transfer. Also, it is worth mentioning that since payouts are sent through a digital account, merchants are free from traditional international bank fees. They will only afford the transaction fee and their payees will not defray any additional costs.
By choosing to send payouts with BoaCompra, merchants are also offering meaningful advantages to their payees: by signing up for a free PagBank digital account, recipients gain access to all offerings in the PagBank ecosystem, such as: using their funds directly from the superapp for shopping, bill payment, cell phone top up with cashback, bank transfers, higher saving interest rates and more.
What is Pagbank’s role in BoaCompra’s process of launching its solution in the Brazilian market and how does this partnership help the parties involved as well as their customers?
BoaCompra is part of PagSeguro PagBank, a disruptive provider of financial technology solutions in Brazil for all kinds and sizes of business, including POS, ecommerce, and digital banking. PagSeguro PagBank allows BoaCompra to benefit from a robust structure, which increases our technological resilience and capacity to enter local markets. Surely this venture is key to taking our product to the next level.
Regarding the Payout Solution, using a PagBank digital account to send funds enables BoaCompra to shorten the remittance flow, by sending the money directly to the beneficiaries, without any other intermediaries in the payment chain. As you can imagine, this results in a cost-effective operation with no bureaucracies from traditional banks to recipients, guaranteeing the product competitiveness in the market.
Another point worth mentioning is that PagBank has over 4.9 million active accounts in Brazil. This number demonstrates the extent of this solid payment fintech in the country, meaning that many Brazilians are already eligible to use our services and merchants should reach their payees very easily. Even though the beneficiaries might not be eligible yet, they can easily open a PagBank account in less than 3 minutes, receive the funds and take advantage of the account benefits.
What is the general profile of BoaCompra Payout target audience? Considering the great potential for growth that LATAM displays through its dynamic industry, could you elaborate on the opportunities BoaCompra is offering to international merchants and its position among these emerging markets?
BoaCompra Payout Solution was created to enable merchants from all over the world, no matter their size or kind, to send payouts to their local recipients in Brazil. We are talking about content and entertainment platforms, streaming services, and any other business model that works with commission payments.
International merchants can benefit from our product by joining new forms of business that are arising in Latin America. For example, leading the way with many fintech start-ups in LATAM we have the emerging markets Brazil, Mexico, Colombia, Argentina, and Chile. Among them there are digital banks that have become references in their own countries, and in the LATAM region, such as PagBank in Brazil, Albo in Mexico, OmniBank in Chile, and Ualá in Argentina.
Can you tell us more about the intricacies of the process in which merchants are able to send payouts through BoaCompra’s system?
There are 3 steps merchants need to go through to send payouts with BoaCompra: onboarding, prefunding and operation.
Onboarding is a default process that merchants go through with BoaCompra, no matter what product they have opted for. It is the process that fixes the partnership between us and the merchant, by signing the contract, uploading documents and integrating with BoaCompra.
Prefunding is a preparation step for sending payouts. It is when merchants must prefund their account with BoaCompra, to make sure all following payouts requests will be answered automatically.
Lastly, we reach the payout operation. In this step, merchants can request payouts for BoaCompra by calling our all-in-one API. The recipients’ money will be sent instantly to their PagBank digital account and merchants will receive balance reports on the payouts sent.
Sending payouts to Brazil is very easy and our team of experts is available to assist merchants with their requests. For more information, we can be reached at: https://boacompra.com/payout
About Alain Delcourt
Alain Delcourt is Managing Director at BoaCompra, a PagSeguro company. He has 20 years of expertise in ecommerce, payments, and digital goods distribution in Latin America. Prior to BoaCompra, Alain co-founded several ventures, which turned him into a versatile executive, known for his skills to build multicultural teams and highly collaborative work environments.
About BoaCompra
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