Brazil to allow credit fintechs to initiate payment transactions (updated)

PagSeguro Digital

25/11/2022 21:52

(Adds details)
       BRASILIA, Nov 25 (Reuters) - Brazil's National Monetary
Council on Friday decided to allow credit fintechs to initiate
payment transactions, the central bank said, a move that will in
practice clear them to provide payment services to consumers and
business establishments.
    To operate as payment initiators, fintechs currently need to
open another company specifically for this purpose. With the
change, they will be able to offer this service within their
routine operation, said the central bank. 
    Payment initiators, according to the central bank, "initiate
a transaction ordered by the final user but never manage the
payment account, nor hold the funds of the transactions."
    The central bank stressed that the change should promote
innovations in the financial system and increase competition
between companies authorized to provide this service.
 (Reporting by Isabel Versiani; Editing by Steven Grattan and
Cynthia Osterman)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))