PIX payment system introduced an update, tech giant Lenovo connected Trustly. Why? Read in the piece below.
The first issue of Mono Talks fintech news brings a set of fresh news about fintech and iGaming. We've gathered not only interesting, but also important news, and we'll explain why they're important and analyze them in detail.
Central Bank of Brazil has decided to change and improve PIX and Open Finance payment flow. The updates are planned to be implemented by the end of this year and will include payment process change. The goal of this update is to eliminate entire need for the payer to open online banking app when making a payment, thereby simplifying the process and reducing possible errors. Although PIX, among other payment systems used in iGaming, boasts one of the highest approval ratios and a well-designed payment flow, there are still few errors happen with this payment method. Brazilians are already familiar with the core principles of PIX and Open Finance, which is already 50% of the success. We will see what to expect in the future after the planned update, but potentially, this could raise the approval ratio of payments to the maximum possible value.
Major financial service providers in the country are required to test the new flow by the end of the year, and full launch will take place at the beginning of 2025. This is quite fast for government programs, and here the Brazilians are clearly beating European bureaucracy.
The second interesting piece of news also concerns open banking technology, on which PIX and many similar methods around the world are based. The well-known European open banking provider Trustly has announced a partnership with Lenovo. We have already written several times in our Telegram channel and on the website that open banking is indispensable today, and this collaboration is further evidence of that. The method has won trust of users, starting from the UK (the birthplace of the technology) and Europe, to Asia and even the CIS (by the way, the System of Fast Payments in Russia is also an open banking). Lenovo aims to offer its users in the EU and UK the most convenient payment method, and the analytics clearly points to open banking, which is used even more than traditional card payment.
There are set of difficulties and obstacles on the way to a successful credit card payment. Using many gaming projects as an example, we can look at the standard structure of payment errors in card processing. Among others 3DS code errors and blocks from the issuer or acquirer happen the most. The approval ratio can drop significantly and therefore bring losses in profit for business owners. Open banking does not face most of these difficulties and is also interesting because it eliminates the possibility of chargebacks. This gives the merchant more confidence in the security of transaction and minimizes chances of encountering fraudulent user. In this regard, penetration of payment method is only growing among countries and merchants. The only question is when this growth will affect the core algorithm of payment: will it lead to scrutiny on the part of AML and KYC?
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