Voice of the Industry

The relevance of local payment methods for the B2B and B2C markets in Brazil

Tuesday 23 June 2020 08:20 CET | Editor: Vlad Macovei | Voice of the industry

Luiz Henrique Didier Jr. from Bexs Bank emphasizes the importance of an online experience that includes local payments for Brazilians and the country’s companies, and also presents a B2B case study that illustrates this need

The importance of local payment methods in Brazil’s B2C purchases is well known, accounting for over 90% of online purchases of goods and services. Besides credit cards authorised only for domestic use, there are payment means very specific to Brazilian culture, such as the boleto (bank slips) and payment plans with monthly instalments. Moreover, it is very important that customers see prices already converted into their local currency during the buying experience, which statistics show is a factor that also increases conversions. However, it is not only end consumers who face these challenges when buying goods and services. B2B corporate purchase also have their barriers when it comes to transactions involving FX.

Software companies typically encounter payment barriers in Brazil

Brazilian companies constantly make international purchases as a way to access technologies inexistent in Brazil or to obtain more competitive prices for goods and services. To clearly demonstrate the challenges encountered, there is the example of B2B (SaaS) software, which are constantly being acquired by companies and are proving extremely necessary, especially during these times of physical distancing. Most software providers have not integrated Brazilian payment methods and only offer international credit cards or invoices as means for paying for their services. However, corporate transactions carried out using international cards represent a small share and are authorised only as a last resort by the companies’ financial departments.

For some years now, the country has been experiencing sharp fluctuations in the prices of foreign currencies against the Brazilian real, making purchases more unpredictable, not to mention the taxes and fees charged. In addition to the FX risk for both parts, there also is the concern, complexity and fulfilment of compliance rules for conducting foreign exchange transactions in Brazil. This complexity often leads to lengthy procurement approval times. The result is long turnarounds for effecting transactions, delaying productivity and processes in the areas that would use international SaaS in their daily routine.

SimilarWeb adopted a fluid solution

It is important that international companies that offer goods and services digitally pay attention to the realities of their potential clients and adapt if they want to increase their market share. SimilarWeb, an Israeli intelligence software and marketing strategy company, is one example of a SaaS company that understood the specificities of Brazilian companies and started operating locally using the Payment Service Provider (PSP) of Bexs Bank, effectively breaking down currency barriers. Previously, its business model accepting U.S. dollar payments enabled it to work mostly with large companies in Brazil, while smaller companies faced difficulties in accessing it software. The local payment solutions broke this paradigm and allowed access to SimilarWeb in a way with less red tape and lower costs for companies of all sizes.

According to Urgel Augustin, SimilarWeb Sales Director for Latin America, the partnership allows the Israeli startup to open up a new business front. “Avoiding the volatility of the U.S. dollar gives customers greater predictability in their spending, which facilitates their cash flow management,” he said. “This allowed us to tap a new market, the SMEs, which are very important in Brazil.”

Integration with local payment methods is straightforward and fluid, using API-based integration or a payment link (URL). This provides access to a giant market, while guaranteeing the revenues in the contract, since the tool already calculates all fees and taxes, which are paid by the client in local currency and with precise fulfillment of compliance rules.

Digital payment process accelerates growth in Brazil

With people and companies hungry for new technologies and software, Brazil is a market that can be better explored by new players that understand the behaviour of these consumers and their needs, such as local payment options. Offering an online experience in local currency and with locally accepted payment means ensures that both people and companies can carry out their cross-border transaction securely, making processes faster and simpler.  

About Luiz Henrique Didier Jr.

With over 25 years of experience at leading financial and payment institutions in Brazil, Didier’s fields of expertise include payment processing, marketing, product and business development and Brazilian foreign exchange regulations. At Bexs Bank, as a CEO, his main challenge is to bring innovation and technology to facilitate, through payment transactions and FX solutions, access to global goods and services for Brazilians and to the best Brazilian goods and services for the world.

 

About Bexs Bank

Bexs Bank is specialised in international payments processing and FX transactions for global e-commerce, SaaS and investments. Through a unique API Platform, our solution provides the collection of Brazilian currency via local payment methods, helping both big and small companies to connect with customers in the digital world and to expand their customer base geographically.

 



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Keywords: Bexs Bank, Luiz Henrique Didier Jr., payments processing platforms, bank boletos, domestic credit cards, installments, b2c, b2b, API, Brazil, compliance, SimilarWeb, payment service provider, SaaS
Categories: Banking & Fintech | Payments General
Countries: Brazil
This article is part of category

Banking & Fintech