Diving Deeper into Brazilian Payment Processing Market
Brazilian payment technologies are already well-known worldwide, thanks to the outstanding success of PIX. This payment method has proven Brazil as one of the most active and technologically advanced countries. Even Europe, inspired by PIX infrastructure, invests into open banking and its own wallet, WERO.
Brazilian payment systems market has experienced some ups and downs in recent years, largely due to iGaming industry. iGaming entered the country with huge number of offshore sites and this led to an increase in the number of payment providers and pushed collaborations between international aggregators and their Brazilian counterparts. The large volumes of payments in favor of casinos in Brazil shacked the market even more: they reduced prices for PIX and led to crazy competition that was hard to imagine just a few years ago.
Later, when authorities decided that gambling has to be profitable and licensed industry, situation rapidly changed. Payment providers also found themselves in the spotlight, as to push out illegal brands with Curacao (or even Anjouan) licenses, authorities needed to prohibited payment processing. Many payment systems also underwent rigorous checks and approvals to comply with new regulations. This affected small providers and aggregators that relied on the wave of iGaming success. However, besides them, there is a stable payment sector in the country that serves, among other things, ordinary local businesses or works with most industries.
Brazil is home to quite large payment providers across all Latin America. Not all of them are useful even for regulated iGaming, but they shape the market, and therefore, we need to shed some light on their performance. They create new technologies, payment methods, lobby various initiatives to the government, thus directly influencing everyone in the country.
Let's discuss the largest payment companies in Brazil in overview from Monoup.
PagBrasil
Of course, our digest will start with the most famous payment organization in the country, PagBrasil. The company began its activities in 2011 as a provider of cross-border payments to Brazil but over time became one of the main PSP in domestic market. PagBrasil is also known for launching Boleto Flash — the first and only Boleto with payment confirmation within an hour. Company received its Central Bank license only in 2013 but had already earned a reputation as an innovator by then.
Payment system was one of the first to launch International PIX for payments abroad. This allowed Brazilians to use their favorite payment method not only within their home country, but also in trips. Interesting that Chinese tourists often face a similar problem, as they are accustomed to WeChat and Alipay. When a country has well-developed local fintech, it allows for cheap payment processing and provides good localized service, but when traveling abroad, citizens may face a completely unfamiliar payment experience and be unable to pay for their purchases. After all, even today, not everyone has a Visa or Mastercard. Therefore, such cooperation, at least with neighboring countries, greatly stimulates tourism and helps travelers “feel at home.” Additionally, PagBrasil was the first to launch 1-Click PIX, using biometric authentication for instant payment without logging into the customer's bank app.
PagBrasil serves a wide range of clients from various industries, including e-commerce and other digital businesses. The payment system offers PIX, Boleto, Apple/Google/Samsung Pay, credit and debit cards. That is, the entire set of payment methods that a Brazilian business might need.
EBANX
A major payment provider for online businesses, EBANX covers almost entire Latin America. Few can boast such a wide range of payment methods and such a high-quality offering. Payment gateway and financial company EBANX focuses on providing local payment methods to international businesses operating in Latin America. That is, companies from Europe, USA, and other locations can use EBANX services to offer their LatAm users a familiar payment experience and create an impression of a truly local product.
When entering a new market, this is one of the most important aspects for any business, as Monoup has repeatedly mentioned too. One of our flagship services is market analysis and connection of suitable local payment systems in most countries. By contacting us, you can get a set of relevant payment methods for your business and desired market of operation without any hassle and in the shortest time.
As for EBANX, it operates not only in the most popular regions of LatAm, such as Brazil or Mexico, but also in exotic destinations: Guatemala, Dominican Republic, Jamaica, covering Bahamas, and even El Salvador. Moreover, the company has already entered African and even Asian markets. In LatAm, payment system offers all available payment methods, including niche and not very popular ones. The popular ones — they are definitely available. Industries that can connect to EBANX include SaaS, e-commerce, gaming, advertising services, tour operators, and even streaming.
Directa 24
D24, formerly Directa 24, is one of those large providers that has long been top choice for iGaming businesses. The company built its reputation in payment processing by offering a wide selection of payment methods and markets, and by regularly attending industry conferences, creating the image of the main gaming payment provider in LatAm.
In particular, iGaming industry has indeed recognized Directa 24 as a reliable partner. However, the pricing of this payment system was not always the most competitive, even expensive. Market prices and quality service always go hand in hand when choosing payment provider, and Monoup always pays attention to these aspects when selecting payment methods for clients. A good combo is almost always possible; with a robust payment structure, you won't have to overpay.
D24 operates in many countries in Latin America, Africa, and Asia. It offers incoming and outgoing payments, payment links, and various integration options. Payment system is focused on collaborating with international businesses and therefore also offers flexible terms for payouts of accumulated funds and comfortable familiar routes.
D Local
D Local, with its central office in Uruguay, being, by the way, the first unicorn in the country, has become an important provider in the Brazilian market as well. The main merchants that can integrate include gaming industry, online education, various e-commerce websites, food delivery services, and even other fintech.
D Local serves a number of large businesses, including Zara, Kiwi, MoneyGram, Google, Microsoft, Amazon, and even Shein. This once again testifies to the quality of solutions provided but also signals that payment system is oriented towards similarly established stable merchants. For a startup, opening an account may not be easy.
PSP focuses only on emerging markets and offers the already known service — local payment methods for global businesses. This approach brings valuable knowledge of the nuances of various markets that may be unknown to international aggregators. Choosing payment systems oriented towards the desired region is an important part of market entry strategy. D Local supports more than 300 local payment methods, which will help increase approval ratios in each individual country of your choice.
At the same time, note that due to such a strong market position and service of more than 400 significant merchants, fees of this payment system may be somewhat higher than expected. Consider all market offers before choosing a truly suitable provider and we really meat it.
Mercado Pago
And we wrap up our digest with one of main players in payment and fintech market — Mercado Pago. Many associate it specifically with the payment wallet, but company's activities are not limited to this.
Launched in 2003, Mercado Pago became one of the first fintech companies in the country, founded by its parent company Mercado Libre, the largest e-commerce platform in Latin America. The payment system soon expanded to the entire market and began its activities with offline business and POS terminals. Later, QR code payments and entry into new markets were achieved. In 2020, company obtained a banking license and added insurance and investments to its range of services.
Mercado Pago processes payments in key Latin American countries, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay, and Venezuela. This allows it to meet the major needs of merchants, focusing only on the most demanded markets. And one of these is definitely Brazil.
Brazil is a promising and dynamic market for many projects. Besides the successful iGaming industry, Brazilians are interested in games, streaming services, dating, shopping, and much more. The main thing is to find your consumer and tailor services to their preferences. Market analysis will help here, which is also crucial in payment systems. Knowing which payment methods are truly popular, which providers offer them, and what structure you can build for your business model, you can launch without delay and start moving money. There's no need to spend time on this anymore, as this task can be trusted to Monoup. Drop us an email for all the details!
