The solution intends to enhance the experience for businesses who take Pix payments, the immediate money transfer tool that has been the most popular payment method in the country, with over 26 billion transactions in its first two years of existence.
Bipa, a cryptocurrency trading platform, is one of the first Belvo customers to use the service. Bipa users can use Belvo's Open Finance payments system to fill up their accounts and acquire Bitcoin without having to go through the typical Pix processes.
Users can initiate Pix payments directly inside third-party settings using this Open Finance payment option, which is less frictional than standard Pix methods such as QR codes or Pix Copy Paste. These enhancements provide higher conversion rates, a better user experience, and a lower chance of fraud.
Because of its account-to-account (A2A) nature and automated redirection, this Open Finance payments solution adds an extra security layer to the table.
Open Finance payment initiation may be applied to a variety of use cases, ranging from ecommerce checkouts to collection processes (such as loan instalments), and can replace systems such as boletos or BolePix. For these participants, the model implies having all of Pix's advantages, such as cheap cost and rapid liquidation, but also giving greater conversion rates and a safer experience, as well as full compliance with the Central Bank of Brazil's regulatory standards.
Payment initiation entails initiating the payment using secure authentication techniques such as online banking credentials. This can aid in the prevention of fraud and ensure that only authorised payments are initiated. Also, the merchant does not receive the customer's sensitive financial information, which reduces the risk of fraud.
The same technologies that safeguard secure access to customers' accounts for Open Banking data aggregation are also in place to protect the sharing of banking credentials in payment initiation, including up to three levels of encryption. Moreover, additional processes, including advanced anti-money laundering (AML) monitoring systems, have been put in place to protect the transfer of money.
Belvo has lately doubled down on its bet to alter A2A payments in Latin America after solidifying it as an Open Finance platform in the region with its data aggregation and enrichment solutions. In Colombia, the firm has released an Open Finance-based solution aimed at retailers and fintechs to accept Pagos Seguros en Lnea (PSE) while providing a better customer experience. This A2A payment option is already accepted by over 20,000 businesses across the country. Belvo now anticipates much greater adoption.
Moreover, Belvo gained authorisation from the National Banking and Securities Commission (CNBV) in June 2022 to organise and operate an Institución de Fondos de Pago Electrónico (IFPE). Belvo is now allowed to provide its Mexican clients’ services to process and issue bank-to-bank payments via its API platform, thanks to this licence. This project has taken the corporation more than a year to complete, and it has finally gotten regulatory clearance.
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