Cross-border payments platform dLocal has recently achieved certification as a Payment Initiation Service Provider (PISP) from Brazil’s Central Bank. This new designation allows dLocal to process Pix payments directly within Brazil’s Open Finance framework, making the payment process more seamless by eliminating the need for users to switch to banking apps during transactions. The Open Finance ecosystem in Brazil, supported by major banks such as Banco do Brasil, Bradesco, Itaú, and Nubank, serves 92% of the nation’s banked population. By integrating with this framework, dLocal aims to enhance the efficiency of digital transactions in the country.
This PISP certification marks another milestone in dLocal’s regulatory journey in Brazil, following the acquisition of a Central Bank license in July 2023. With this new certification, dLocal now offers direct Pix payment initiation, enabling quicker and more straightforward transactions. For example, users utilizing Smart Transfers can bypass additional steps like authorizing payments through separate banking applications.
Payment initiation plays a crucial role in expediting Pix payments, streamlining the process for users and businesses alike. By reducing friction during the checkout process, companies may observe higher completion rates for transactions. This efficiency is particularly valuable in the fast-paced digital economy, where speed and convenience are paramount.
Pix, developed by the Central Bank of Brazil, is an instant payment system that allows users to transfer funds between accounts within seconds, even outside regular business hours. Compared to traditional payment methods, Pix boasts lower operational costs due to its decreased reliance on intermediaries. In addition to Pix, Brazil offers various established payment methods such as TED, DOC, bank slips (Boletos), and credit or debit cards, providing users with a plethora of options based on their preferences.
As a leading payment services provider in emerging markets, dLocal specializes in connecting global merchants with consumers across Africa, Asia, and Latin America. Through its ‘One dLocal’ platform, the company consolidates payment processes with a unified API, contract, and system, simplifying transactions for businesses operating on a global scale.
Overall, dLocal’s certification as a Payment Initiation Service Provider in Brazil represents a significant step towards enhancing the digital payment landscape in the country. By enabling direct Pix payments and streamlining transaction processes, dLocal aims to drive efficiency and convenience for users and businesses alike. With the continuous evolution of payment technologies, partnerships like this between dLocal and Brazil’s Central Bank pave the way for a more seamless and interconnected financial ecosystem.
