The Next Global Leader? A Spotlight On Brazil’s First Open Banking Payment
16:07 22 Jul 2022 On January 13 2018, the UK became the birthplace of Open Banking. Since that epochal moment just four years ago, the blueprint created in Britain has inspired nations around the world to launch their own Open Banking and Finance journeys.
Today, one of the ecosystems we are most excited about is evolving at a breathtaking speed in Brazil. It is less than two years old, yet is outpacing even the most established markets in its implementation and adoption of Open Banking and Open Finance. Which leads us to ask one obvious question: could Brazil become the global leader?
When Did Open Banking Launch In Brazil?
Implementation in Brazil took place in four phases. The first phase launched on February 1 2021 and opened up access to information about products and services as well as physical location. Phase 2 followed just a few months afterwards on August 13 2021, enabling the sharing of customer and transactional data. Following fast on its heels was Phase 3, which introduced payment initiation on August 30 2021. Then came the ultimate destination: Phase 4 and the transition to Open Finance.
After the launch of Phase 4 was delayed by several months, Brazil’s National Monetary Council (Conselho Monetário Nacional) approved a Resolution in March 2022 that officially launched the country’s Open Finance project. Mercado Pago then became the first payment initiator in Brazil, enabling users to make payments or transfers via PIX without having to go into their bank app to complete the transaction.
PIX is an instant payment system used by over 100 million people in Brazil – half the total population. The Central Bank opened PIX for registration on 5 October 2020. Just five days later, almost 25 million keys were registered, demonstrating the huge appetite for financial innovation in Brazil. With more than 30 million unbanked people in the country, the adoption of Open Finance looks certain to become an enabler of financial inclusion.
Implementing Open Finance
The Brazilian implementation of Open Finance is one of the most ambitious on the planet, incorporating pension funds, foreign exchange, investments, and insurance products. Many observers now expect the Brazilian Open Finance ecosystem to become the largest in the world.
Figures provided by Chicago Advisory Partners show there are now more than 700 institutions participating in Open Banking, with 160 institutions that are active in providing transactions. In March there were more than 300 million API calls.
The major milestone in 2022 was the first Open Banking payment. To help our global community learn more about this game-changing moment, OBE gathered some key members of our familia to discuss the journey so far as well as the future roadmap. We filmed a must-see video in Portuguese featuring the following Open Finance pioneers and leaders:
- Carlos Jorge, Co-Founder at Chicago Advisory Partners and General Secretary at Open Banking Brazil
- Mariane Silva Flores, Payments and Regulatory Specialist
- Alexandre Siqueira, Cyber Security Tech Leader at Mercado Livre
" alt="">
" alt="">
" alt="">
" alt="">
" alt="">
" alt="">
" alt="">
" alt="">