dLocal, the cross-border payment platform specializing in high-growth markets, marks a regulatory milestone by becoming a certified Payment Initiation Service Provider (PISP) in Brazil, authorized by the Central Bank.
This certification enables dLocal to facilitate Pix payments directly within the Open Finance ecosystem, enhancing the checkout process while also reducing friction by enabling direct payments without “redirecting users to bank apps.”
Brazil’s Open Finance ecosystem is supported by the top five banks, including Banco do Brasil, Bradesco, Itaú, and Nubank, which together represent 92% of the banked population.
This achievement follows a series of milestones for dLocal in Brazil, including the firm’s Central Bank-issued license in July of last year.
With this certification, dLocal is able to initiate Pix payments directly, providing consumers with a more intuitive experience without the need for separate “authorizations in banking apps in the case of Smart Transfers, for example.”
Here’s why Payment Initiation Certification is considered to be key advantage:
- Streamlined Checkout: Pix payments are now faster, eliminating unnecessary steps for the consumer.
- Reduced Friction, Increased Conversion: A smoother, more intuitive experience with fewer barriers between intent and completed transaction.
As covered, dLocal powers local payments in high-growth markets, connecting global enterprise merchants with “high-growth” market consumers.
Via the “One dLocal” concept (one direct API, one platform, and one contract), global firms are able to “accept payments, send payouts, and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.”
Within the Brazilian instant payment (IP) ecosystem, Banco Central do Brasil (BCB) created Pix, the Brazilian IP scheme that enables its users — people, companies and governmental entities — to “send or receive payment transfers in a few seconds at any time, including non-business days.”
By transferring funds between transactional accounts, Pix is a payment method that tends to have a “lower acceptance cost because its framework works with few intermediaries.”
Pix is another element in the set of payment instruments “available at the Brazilian retail payments system.”
As such, traditional payment instruments, such as TED, DOC and Boletos (bank slips) will continue to be offered; the “same holds for credit and debit cards.”
Therefore, the announcement noted that it is the end user’s discretion to choose “the best payment instrument for the occasion.”
