International payments fintech EBANX recently obtained authorization from the Brazilian Central Bank to operate in the country as a payment initiator via the popular PIX instant transfer system.
According to the company, the Payment Initiation Service Provider (PISP) license expands the range of services the fintech can offer its customers.
Now, companies served by EBANX will provide consumers with the ability to pay for online purchases with PIX directly through the checkout of their website or app without the need to access the bank’s app to complete the payment.
PIX has revolutionized the Brazilian economy by speeding up payments in unprecedented ways. This new feature, then, has the potential to make PIX payments in e-commerce more straightforward and more secure for millions of consumers.
Faster, more secure transactions
“The payment initiator speeds up the payment process, reduces friction, and increases transaction security: the user no longer needs to leave the store’s website or app, log into the bank’s app, or worry about copying and pasting the QR Code and checking that everything is correct. Payment with PIX in digital commerce is much more fluid this way,” says Erika Daguani, VP of Product at EBANX, in a statement.
Companies that sell online and are fintech partners in Brazil can benefit significantly from this new service, increasing their retention and conversion rates. Data from EBANX’s Beyond Borders 2022/2023 study shows that PIX already accounts for more than 16% of total e-commerce sales volume in the South American country.
Reducing payment steps
The PISP license was created in the context of the expansion of Open Banking in Brazil and authorizes companies to initiate payments and transfers via PIX on online purchases, aiming to simplify the consumer journey and reduce the number of payment steps. Only about 20 institutions are licensed to offer the service.
“PIX as a payment initiator is another example of the Central Bank’s focus on the user experience and usability of PIX; it is a major advance for Brazil’s alternative payments industry. We are very happy to offer this service to our clients and promote access to real-time payments, easily and securely, to millions of users,” added Daguani.
In recent years, Ebanx has become one of the leading payment platforms in growing markets. The company has more than 500 partners in Brazil and consolidated operations in LatAm and Africa.
Founded in 2012, Ebanx’s proprietary technology and infrastructure allow global businesses to connect with hundreds of payment methods in the company’s countries.