Boleto payments: making use of voucher payments online
Brazil and its forays into payment integration beyond banking institutions have been an ongoing phenomenon that online casino owners have been leveraging. With some Brazilians still unregistered in the country’s banking system, being able to cater to them can be a difficult process without the proper infrastructure. Luckily, other payment method options have been popping up with many of these backed by the Central Bank of Brazil such as the Boleto — simple voucher system that still plays a role in the digital landscape of Brazil and the various businesses that have dipped their toes in the online space.
Running payments through vouchers: pros and cons
What Is Boleto?
Boleto is a basic cash voucher, literally meaning “Ticket”, is still used up to this day, however, businesses report the drop of their digital payments amount in Boleto transactions over the last years. Claiming these vouchers might entail the payee having to find a nearby branch store or ATM but recent developments have allowed for payment integration with online banking applications. Boleto ticket details have even started to be sent through email, further expanding the opportunities for payment integration with other online services.
Boleto was an instrument to give non-banking Brazilians a way to participate in the local market and even global offerings like online casino services. Although there have been other options for payment processing for iGaming, this voucher-based system still holds on as a simple and easily accessible way for some part Brazilians. Boleto was simple and hassle-free for a notable part of Brazilian society for a long time. Due to lack of trust to a local banks and financial system with cash overloading the streets — that was the only way to give “online” a chance. Boleto became a bridge between offline and digital and still stays it for someone.
Weighing Out the Pros and Cons of Boleto
The Boleto payment system have all the advantages and disadvantages of a voucher that is required to document transactions. Voucher acts as an authorising document that approves cash transactions while ensuring that all details are correct. With this payment method, it can be used by businesses as both an invoicing solution and a way to track transactions through measures such as bar codes, instructions, and due dates where the Boleto must be claimed or it is rendered unusable.
Some of the pros of integrating this system in your online casino include:
- A local experience for players in Brazil; even those without banking accounts;
- Protects against fraud due to the voucher format;
- Payment integration is a simple process.
For Brazil players, Boleto system is a familiar payment method that any online casino can offer and be right. It can be easily integrated into a payment gateway for both online and offline transactions, making top-ups simpler without necessarily having to connect to a banking account. Each transaction generates a unique barcode for that single ticket, keeping things simple for those who may not be as technologically savvy.
Even it all sounds good, but voucher payments fail to provide the functioning of big transactional mechanisms. There are some cons that might be of concern:
- Requires to settle the voucher, previously buying it;
- Connected to a 2–3-day delay for fund settlement;
- Not as convenient as instant payment methods for both participants;
- Creates additional layer between merchant and player.
With alternatives such as PIX that was mentioned in another article, businesses see for themselves the value of transaction speeds in everyday operations. Boleto does immediately confirm transactions once the ticket is claimed but it still imposes a 2-3 days delay for transferring funds from the payment provider to business’ account. In terms of accounting, it can affect how a business records its cash flow and may delay payments further depending on how much cash is on hand. There is also the problem of being seen as an online casino with slow transaction times but this may not be as large of an issue since only the Brazilian market can access the Boleto ticket system.
Why Boleto have lost to PIX
With the Brazilian market for online casino services reaching revenues of around 1.96 billion USD, there definitely is a chance to build a business and find success. Additional information includes the fact that the growth of this revenue is still expected to rise up by around 15.39%, making Brazil a surprisingly good market for all sorts of e-commerce ventures with 2.7 million users already staked in. Keeping payment method types such as Boleto can really slow down the progress and do not respond to the current requirements. Players, who want the easiest way of loading up their wallets and having a good time, expect something faster and easier. And here PIX showed up.
Destroying all that was previously known, PIX presented the new way of payments and make Brazilians to see the good side of being banked as well. Simple QR code algorithm and two taps payment process have won over the long cash payments and voucher redeem. However, some still use Boleto, the number of users continuously falling.
If a reliable service for payment processing for iGaming is the concern, then Monoup can be a great choice. Aside from the payment provider, an online business will have to consider the payment gateway and whether the whole routing process and payment method is a fit. Consulting with professional firms that specialize in creating payment routing and risk management can help you stay afloat and keep you in the game. Monoup is here exactly for these kinds of situations! Simply contact us through the official website or send an email to inquire about our consultations and other services.
