Brazil’s Central Bank will Implement Instant Payment System

RIO DE JANEIRO, BRAZIL – The development of the instant payment system is progressing. This week, the Central Bank (BC) announced that it will be responsible for developing the database and system administration.

The idea is to replace transactions with cash or through bank transfers and debits of transactions between people.

According to the Central Bank, instant payments will be made in a few seconds and will be available for 24 hours every day of the week.

The decision to develop the system will allow banks and fintechs to continue defining their business models for instant payment.

Currently, transfer payments are made through banking channels and the amounts reach the recipient on the same day, as long as the transfer is made on working days at a time set by banks from 6:30 am to 5 pm.

The cost of the transfer is defined by the banks for each operation or has the value included in a service package. With the system of instant payments, the Central Bank’s expectation is that there will be a reduction in these costs for customers.

According to the Central Bank, there will also be cost reduction for companies that receive transfers. The Central Bank says that the merchant will only need to have a unique identification code to allow its customers to read this code via their smartphones. This code will contain all the information necessary for the resources to be transferred instantly.

According to the Central Bank, initiating an instant payment should be as simple as selecting a person from the mobile phone’s contact list.

To make the instant payment, you will need a smartphone, a payment service provider (PSP) account of the consumer’s choice, and the app.