The Central Bank of Brazil and the National Monetary Council of Brazil have announced new regulations for Open Finance and Pix payments.

The new rules are aimed at streamlining payment initiation processes using the Pix instant payment system, and the measures are intended to simplify online payments, particularly through digital wallets, and facilitate contactless transactions with Pix, eliminating the need for users to access their financial institution’s app directly. 

The regulatory updates also expand the participation requirements within the Open Finance ecosystem. Previously limited to larger institutions, participation will now extend to include financial entities active in key segments such as investments and foreign exchange operations. 

Additionally, the long-awaited definitive governance structure for Open Finance has been established. This structure will possess organisational autonomy to oversee the development and operation of Open Finance services and products.

What is the implementation timeline? 

In terms of implementation timelines, specific regulations for non-redirected payment initiation are expected by the end of July 2024. Institutions are mandated to conduct production tests by 14 November 2024, with the full launch anticipated by the end of February 2025. 

The regulatory framework also outlines varying participation requirements based on institution size and segment involvement. Institutions with significant customer bases and those participating in Pix will be required to participate in payment initiation, while smaller entities will have optional participation, contingent upon their customer base. 

In essence, these developments mark a significant step towards enhancing financial accessibility and operational efficiency through Open Finance in Brazil, supporting an environment for integrated financial services and super apps that consolidate diverse financial offerings into a unified customer experience.

More information about Pix

According to PagBrasil, Pix is a payment method developed by the Central Bank of Brazil that enables transactions to occur in less than 10 seconds, 24 hours a day, 7 days a week including weekends and holidays. 

By selecting Pix at the checkout page, users can either scan a QR Code using their smartphones or copy and paste a Pix code into their banking or digital wallet apps. After that, they can check the receiver’s information and confirm the action. Users do not need a bank account to pay with Pix. They can make a payment using services from any institution participating of Pix, such as a digital wallet.