Until recently, cross-border payments in Brazil could be considered a real Achilles' heel for international merchants. However, regulatory and technological advances have completely transformed this scenario, making the country an attractive destination for global players. In this context, we can mention the simplifications introduced by Pix - the country's revolutionary instant payment system.
With the new reality of cross-border payments in Brazil, multinational companies are increasingly betting on this emerging market. Pix's integration opens new ways for foreign companies of all sizes and sectors. After all, it is the preferred payment method for Brazilians, enabling fast, convenient, and secure transfers.
Launched in 2020, Pix quickly became the most used payment method by Brazilians. In 2022, the system processed the equivalent of 15% of all instant payments made worldwide, making Brazil the second largest in terms of the number of transactions, with one of the highest growth rates in the world. This data is available in the Prime Time for Real-Time Report, an ACI Worldwide initiative in partnership with GlobalData.
But that's not the only reason why international merchants should consider investing in Brazil. Data from the Central Bank (BC) shows that financial inclusion in the country is well over 90%. Moreover, both the public and private sectors are exploring alternatives to overcome potential inefficiencies. While the government updates laws and systems, solutions offered by fintechs are simplifying cross-border payments in Brazil.
1. Efficiency and speed
With real-time transactions, Pix streamlines payments, bringing unprecedented efficiency to international businesses of all sizes and segments.
2. Reduced costs
By avoiding intermediaries and high fees, Pix offers a low-cost alternative for international transfers, benefiting businesses on a tight budget.
3. Friendly regulation
Compared to other countries, Brazil has a relatively closed foreign exchange market. However, it is possible to navigate this market, despite different tax regulations and specific laws governing payments in the country. Brazil is also dedicated to attracting foreign companies and is working on more flexible regulations, gradually reducing fees, and simplifying access to the foreign exchange market. However, having an experienced partner to help you access the Brazilian market guarantees greater security and stability for your business.
4. Simplified access
With Bazk, a truly Brazilian fintech, you can simplify the complete process of making cross-border payments in Brazil - it allows international transactions to be made using the local payment methods preferred by these consumers - without complications. In other words, Safepag is a strategic partner to ensure regulatory compliance and scale your results in Brazil.
Despite being the 8th largest domestic market in the world, many companies still feel intimidated by the Brazilian regulatory landscape. Dealing with a variable financial operations tax (IOF), taxes withheld on certain foreign exchange transactions, and stricter requirements to access the market may appear challenging.
In this regard, a partnership with Bazk gives the merchant more confidence to invest. This solution can make it easier for companies in all sectors to make cross-border payments in Brazil. Besides making operations more agile, secure, and transparent, the compliance-first approach provides the peace of mind needed to explore the Brazilian market.
With in-house development and a dedicated team, Bazk offers hassle-free implementation. So, get in touch and find out how we can help your business today!
