Fernanda Zago , CEO of WePayOut , depicts how new FX regulatory changes in Brazil can positively impact cross-border payment services
The fintech and payments sector has been growing tremendously in the last five years in Brazil, especially in the cross-border field. What do you think could be the prospects and reasons for this growth?
Recent developments in the FX regulation space in Brazil will bring important changes in the way cross-border payments are made. Historically, cross-border payment solutions in Brazil date back more than a decade when the use of international credit cards and foreign ecommerce began to have a greater structure to start sales in the country.
However, this solution was not the most appropriate because the level of conversion in payments was low, since the level of rejection, especially in high-risk industries, was very high. Another problem was that the people who were interested in international ecommerce did not own an international credit card, and many of them did not even have a bank account.
Much has evolved since then with the fintech companies, also known in Brazil as facilitators of international payments – financial companies with a focus on helping international companies send or receive funds in the country.
What is the role of an international payment facilitator?
The Brazilian exchange regulation first established in 1920, which encompasses more than 40 laws, tried to keep up with the technological developments and payments that were modernised to meet this new economy. However, the regulation did not have (in a clear and unified way) guidelines for the operation of each player, in many cases receiving harsh criticism from industry associations for the lack of competitive equity.
For approximately a decade, facilitators operated through the regulation circulars or even under legal opinions. Furthermore, the service of remittances could only be […]
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