Belvo to operate as Payment Transaction Initiator in Brazil

Wednesday 28 September 2022 09:57 CET | News

Central Bank of Brazil (Bacen) has authorised Belvo, an Open Finance platform, to operate as a Payment Transaction Initiator (ITP) in Brazil.

With this license, Belvo will be able to offer its customers the possibility to transfer money via Pix between accounts of different institutions. All within their own platforms, a process with less friction for the final consumer. The use cases Belvo intends to develop include different payment solutions with high potential in the Brazilian market: business models such as lenders, ecommerce checkouts, personal finance managers, and enterprise resource planning (ERP) software providers can benefit from payment solutions.

By connecting with Belvo, lenders will be able to centralise and automate the process of collecting parcels, fees, and emitting payments, in a more practical process.

This solution also has potential for the business to business (B2B) payments market and its operators. For instance, payment initiation allows ERP systems to offer their customers the option of making payments directly through their platform interfaces, making it easier to operate financial tasks and accounting.

Belvo’s plans for Brazil and Mexico

Receiving this authorisation from Bacen is a step toward Belvo's mission in Brazil and Latin America to democratise access to financial services and promote Open Finance in the region. From this step, Belvo aims to improve its offer to the Brazilian market, with a complete product that goes from aggregation and enrichment of financial data to payment initiation.

Central Bank of Brazil (Bacen) has authorised Belvo, an Open Finance platform, to operate as a Payment Transaction Initiator (ITP) in Brazil.

At the beginning of June 2022, Belvo also received a similar license from the Mexican government to start offering its payment solutions in the country. Through the license, Belvo can offer its clients in Mexico services to process and issue bank-to-bank payments through its Application Programming Interface (API) platform. The company has been working on this project for more than a year before receiving regulatory approval.

The use cases that Belvo develops include different payment solutions that are in high demand in the market. All in compliance with the provisions of the Mexican Fintech Law and in line with the plan approved by the regulator.

Belvo’s developments in Latin America

Belvo is an Open Finance API platform in Latin America, founded in May 2019. The company enables fintechs and financial institutions to access and interpret data and initiate payments from their end-users’ accounts – to power more modern, accessible, and inclusive products.

In December 2021, Visa invested in Belvo's Series A funding round, helping the company raise USD 43 million to enter a new phase of market expansion and collaboration with other strategic partners.

The two companies have also formed a partnership, agreeing to work together to support new payment flows, integrate both Visa and Belvo’s APIs for improved consumer experiences, and develop new solutions around areas such as identity verification. In addition to supporting new fintechs and developers, Visa works with Belvo and its traditional bank clients to create solutions for new market segments. For instance, if a bank in the region wants to create a new application to reach a niche segment like gig economy drivers, Visa and Belvo can work together to bring this to life via Belvo’s Open Finance APIs.

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Keywords: ecommerce, Open Finance, regulation, money transfer, payments
Categories: Banking & Fintech
Companies: Belvo, Central Bank of Brazil
Countries: Brazil
This article is part of category

Banking & Fintech



Central Bank of Brazil

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