Brazil Payment Landscape
Brazil Payment Landscape
Brazil is the largest economy in Latin America, and the payment landscape is regulated by the Central Bank of Brazil (Banco Central do Brasil, BCB), at the core of which is the central bank-led instant payment landscape. Pix Pix has become Brazil's national payment infrastructure, with Pix QR codes being the main gateway for online acquisitions, and bank notes Boleto, Parcelamento, and digital banking are just as important. Understanding the Brazilian payment landscape helps evaluate PayCools' acquisition direction in this market.
Regulatory & Payment Structure
| Body | Responsibilities |
|---|---|
| BCB (Central Bank of Brazil) | Supervision of payment landscapes, operation of core systems such as Pix and Str, and formulation of rules for payment institutions and payment arrangements |
| Payment Institution (IP) | Institutions that provide services such as acquisitions, wallets, transfers, etc., need to be authorized by the BCB and included in the payment arrangement |
| CIP / Núclea | Liquidation and bill infrastructure operators, registration and liquidation of bills carrying Boleto and other bills |
| Open Finance Brasil | BCB-led open financial system to promote the sharing of data and payment origination in phases |
Pix Instant Pay
Pix was launched by BCB in 2020 and is Instant payment landscapes covering banks and payment institutions, has become the most popular electronic payment method in Brazil.
- Arrival time: Real-time (seconds), 7 × 24 hours operation
- Pix Key: Use CPF/CNPJ (tax identification number), email, phone number, or random key as the payment identification
- Pix QR: QR codes based on BR Code (EMV standard), divided into merchant dynamic codes and static codes, are the main entrance for offline and online code scanning payouts
- Pix Copy Paste: Transfer payment information as a string, often used for online checkout
- Pix Automático: Regular automatic debits for subscription and recurring billing scenarios
eWallet & Digital Banking
Nubank
The largest digital bank in Latin America, offering digital accounts, credit cards and Pix collection and payment, with a leading user base.
Mercado Pago
A wallet and acquiring platform derived from the e-commerce ecosystem, supporting Pix, QR code collection and inter-account transfers.
PicPay / PagBank
Scan the wallet with social payments to cover personal transfers and merchant payouts.
Digital Banking
Inter, C6 Bank, BTG and other digital banks provide accounts, cards and Pix services, and the penetration rate continues to increase.
Boleto Bank Notes
Boleto Bancário is a unique payment method for bank notes in Brazil and is still widely used in e-commerce and bill payment:
- Process: The merchant generates a ticket with a barcode, and the user pays through the banking app, online banking, agent outlets or lottery points
- Arrival: Usually 1 business day or so for confirmation (some channels support same day confirmation)
- Registration: The current boleto needs to be registered with the clearing house (boleto registrado) to improve safety and consistency
- Applicable scenarios: E-commerce Payouts, Billing and Installment Downpayments for Cardless/Low Card Penetration Populations
Cards & Installments/BNPL
- Credit/Debit Card: Visa/Mastercard/Elo/American Express, etc., online payment generally includes 3D Secure (3DS 2.x)
- Parcelamento (Staging): Brazil has a strong culture of credit card installment (parcelado), which is an important means for e-commerce to increase customer unit prices. Common "interest-free installment"
- BNPL (Buy Then Pay): Derived on the basis of Pix and card installment, some platforms provide instant credit and installment, covering people without cards
Compliance Essentials
- License Plate: The payment service must be authorized by BCB as a payment institution (IP) and included in the corresponding payment arrangement (arranjo de pagamento)
- KYC / AML: Customer Identification, Due Diligence and Suspicious Transaction Reporting (COAF) in accordance with the Anti-Money Laundering Law (9.613/1998)
- Data protection: Subject to the LGPD (No. 13.709/2018), cross-border transfer of personal data is subject to compliance conditions
- Tax: Financial transaction tax (IOF) is applicable in cross-border and some transaction scenarios, pay attention to the rate and reporting requirements
- Forex & Cross-Border: Cross-border collection and payment must be handled through channels authorized by the BCB and comply with foreign exchange reporting regulations
Capability mapping for PayCools in Brazil
| Ability | Description |
|---|---|
| Acquisition | Support Pix dynamic QR code payout |
| Pay on behalf of others | The specific support capacity depends on the opening of the channel, please consult PayCools Business |
| Ledger/Refund | The ability to split accounts and refunds is subject to the availability of channels |
Supported Acquisition Channel Codes
| Payment Type | Channel Code | Description |
|---|---|---|
| QR | BR_PIX_DYNAMIC_QR | Pix Dynamic Code |