Central Bank Enhances Pix Security and Sets New Launch Date for Pix Automático
Hey Payments Fanatic!
The Central Bank (BC) has updated Pix regulations for improved security. From November 1st, financial institutions must adopt solutions for Pix key management and fund transactions, aiming to combat fraud and ensure safer payments.
Key Changes:
Financial institutions must use fraud risk management solutions that identify atypical Pix transactions and provide customers with anti-fraud information through accessible electronic channels.
They must verify, biannually, if customers have fraud markings in BC's database and treat them accordingly, possibly ending relationships or setting different authorization limits.
Device Registration:
Transactions over R$200.00 must be made from registered devices to prevent fraud. Unregistered devices can be used for transactions up to R$200.00, with a daily limit of R$1,000.00. This targets fraud from stolen or socially engineered credentials.
Pix Automático:
Scheduled for launch on June 16, 2025, Pix Automático will simplify billing for various sectors, including public services, schools, gyms, and more. Users can authorize automatic periodic debits via mobile phone, enhancing convenience and efficiency while reducing costs and delinquency.
Read more Payments industry news I listed for you below and I'll be back in your inbox after the weekend!
Cheers,
Stay Updated on the Go. Join my new Telegram channel for daily updates and real-time breaking news. Stay informed and connect with industry enthusiasts —subscribe now!
INSIGHTS
📊 2024 Global Ecommerce Report by Boku. "The Changing World of Payments." Check out the full report here
PAYMENTS NEWS
🇦🇪 Visa and First Abu Dhabi Bank collaborate on expansion of B2B Connect network. The collaboration aims to enhance corporate cross-border payments, allowing businesses in the UAE to conduct secure and efficient transactions worldwide.
🇺🇸 Marqeta becomes first issuer processor in the US certified to enable Visa Flexible Credential. Working with Visa and Affirm, Marqeta will enable a flexible payment experience for consumers by providing access to different funding sources on one payment card for the first time.
🇧🇷 FinTechs IP4Y and Zro Bank authorized by Central Bank to operate as Payment Institutions in Brazil. The license is in the form of an electronic money issuer. More on that here
🇺🇸 PayPal Appoints Enrique Lores as New Independent Board Chair. “Enrique's deep expertise in consumer and enterprise technology has been invaluable to PayPal,” said Alex Chriss, President and CEO of the firm. Keep reading
🇿🇦 SA FinTech Peach Payments acquires software firm Operativa. The firm stated that it wanted to use the Fund's investment to accelerate its expansion into new African markets, broaden its product offering, and strengthen its core merchant value proposition.
🇺🇸 Fortis acquires MerchantE’s NetSuite division. This strategic addition will help customers enhance the efficiency of their payment operations and accelerate the deployment of new, embedded financial and commerce enabling services.
🇺🇸 Thredd signs US processing agreement with Google-backed Spendbase. This collaboration marks Thredd’s second U.S. client and signals Spendbase’s market expansion into North America. Continue reading
🇺🇸 Sage integrates with Stripe to improve cash flow management for SMEs. Through this partnership, Sage intends to expand its payments ecosystem, ensuring that a growing number of its customers have access to services that will help them to manage their cashflow.
🇧🇷 Brazilian FinTech company Delend has received the IP/ITP license from the Central Bank of Brazil. With this authorization, the startup can now integrate into the BC# agenda and operate as a payment institution, specifically as a payment transaction initiator, integrating into the Open Finance ecosystem and initiating payments via Pix.
GOLDEN NUGGET
𝗪𝗵𝗮𝘁 𝗶𝘀 𝗶𝗻𝘁𝗲𝗿𝗰𝗵𝗮𝗻𝗴𝗲, 𝗮𝗻𝗱 𝘄𝗵𝗮𝘁 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗰𝗵𝗮𝗻𝗴𝗲 𝗿𝗮𝘁𝗲?
Let’s dive in:
Every time a consumer swipes a card to make a purchase, the merchant pays an interchange fee.
Revenue from the fee gets divided among parties that facilitated the transaction: the banks that send and receive the payment, the card network, the payment processor, and—more recently—fintechs and businesses that embed payments.
When you take the bird-eye view diagram 👆 as an example:
If a user swipes a card issued by a Neobank, $1.70 (interchange fee) goes to the issuing bank and the card network, $0.50 (acquiring fee) goes to the acquiring bank.
Interchange fees are not always the same though.
𝗪𝗵𝗮𝘁 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 𝗶𝗺𝗽𝗮𝗰𝘁 𝗶𝗻𝘁𝗲𝗿𝗰𝗵𝗮𝗻𝗴𝗲 𝗿𝗮𝘁𝗲?
► Credit vs. Debit
Interchange rates on credit cards are significantly higher than those on debit cards.
► Rewards programs
These benefits are financed through higher interchange rates, and have proven to be very popular with consumers.
► Online vs. Offline
Online purchases are less secure than in-person purchases.
► Consumer vs. Commercial
Cards associated with business or corporate accounts carry higher interchange rates than consumer cards.
► Merchant Category Code (MCC)
Every merchant is categorized by the major card networks according to a Merchant Category Code (MCC). This means that there are different interchange rates depending on whether someone uses a card in a supermarket, a retail store, a gas station, or with some other form of merchant.
► The Card Network
Different card networks charge different rates. Visa and Mastercard are known for charging lower rates. Other networks like AMEX are known for charging higher rates.
► Network partner programs
Visa and Mastercard’s partner programs like VPP (Visa Partner Program) and MPP (Mastercard Partner Program) often give specific retailers interchange rates that are much lower than the networks’ published interchange rates.
► Size of the issuing bank (in the US 🇺🇸)
Larger banks are subject to a regulation called the Durbin Amendment that caps interchange rates on consumer debit transactions. Smaller banks are exempt.
As a result, these smaller banks can earn more revenue from interchange rates—and that benefits the FinTechs and embedded finance businesses that partner with them.
Want your message in front of 100.000+ FinTech fanatics, founders, investors, and operators?
Shoot me a message on LinkedIn.
Comments ()