News

Mercado Pago brings payment initiation to 10 million sellers

Monday 23 May 2022 13:29 CET | News

Mercado Pago, Mercado Libre's financial company, has prepared to make the payment initiator available soon to the more than 10 million sellers who use the tool, according to broadcast.com.br.

Through the initiator, developed by the Central Bank of Brazil and part of the Open Banking framework, the company hopes to increase the number of virtual shopping carts that turn into sales – the so-called conversion.

PIX accounts for about 25% of the volume processed by Mercado Pago and shows greater success in getting a purchase through to the end. According to the company, about 75% of transactions in which PIX is the means of payment reach the end. In boleto, which has been largely replaced by instant payment, the conversion is much lower, around 40%.

The idea of Mercado Pago is to use the initiator to go after the 25% that, even using PIX, do not complete the purchase. The tool, roughly speaking, allows the customer to authorise the institution that processes the payment to debit the funds directly from the bank account. This eliminates a series of steps, like opening the bank app, pasting the PIX code, and validating everything with the password, and then returning to the store. This is when many customers give up.

Approved by the Central Bank in February 2022, Mercado Pago is part of a small group enabled to offer the payment initiator feature, together with Banco do Brasil, BTG Pactual, and Itaú Unibanco. The company already offers individual customers the possibility of using the initiator to bring in resources from other institutions. The product for companies, therefore, is the second one.


More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Mercado Libre, payment initiation, PISP, Open Banking
Categories: Banking & Fintech
Companies: Mercado Pago
Countries: Brazil
This article is part of category

Banking & Fintech

Mercado Pago

|
Discover all the Company news on Mercado Pago and other articles related to Mercado Pago in The Paypers News, Reports, and insights on the payments and fintech industry: