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What Visa has in store for Brazil

Bnamericas Published: Wednesday, January 29, 2020
What Visa has in store for Brazil

Visa believes some innovation solutions will finally be able to take off in Brazil as of this year.

The US card giant also sees a change in habits among consumers leveraging applications that were already on the market. This is the case of payment by approximation. In addition to the use of mobile devices such as cell phones and watches, contactless payments are likely to gain ground in debit and prepaid cards, Visa said in a press release.

In 2019, the format reached the public transportation systems of the two largest Brazilian cities. Rio de Janeiro was the first city in Latin America to adopt the use of credit cards in metro turnstiles while São Paulo implemented the system in selected bus lines, promising a gradual expansion.

Visa says implementation is simple and sees this form of payment being incorporated into the daily lives of more Brazilians this year.

INSTANT TRANSFER

Another bet is on push payments, or the use of cards for money transfer. Brazil’s central bank is expected to regulate the system this year.

Called Visa Direct, the company’s solution is being tested with different players in the ecosystem and allows consumers or businesses to make transfers to an account associated with a card or any other payment device.

The operation can be carried out in up to 10 seconds, said Visa. It covers transactions between individuals, from individuals to companies, from companies to individuals, and between two companies.  

The platform can be integrated to external APIs using the same security standards as traditional transactions, according to the company. The payment method is also seen as being inclusive, as unbanked users can also use the solution through physical or virtual prepaid cards. 

The system to be greenlighted by the central bank has the potential to replace operations such as TED, DOC and debit card payments - which are more expensive either the both consumer and the store owner.

TOKENS

Visa also expects to expand the use of tokens, the technology that replaces the traditional card number for an unique sequence of characters generated at each transaction, which is said to better shield sensitive information during the operation.  

When realizing that their experience is safer, consumers will opt for the convenience of buying with just one click through their cell phone, Visa said. In the near future, the company sees the inclusion of tokenization technology on IoT connected devices such as car or TV sets.

BLOCKCHAIN AND DEBIT CARD IN E-COMMERCE

Starting this year, companies will be able to make international transactions involving high values through a network based on a blockchain platform. Blockchain allows transactions to be faster and more transparent, as it records the operation step by step. 

Meanwhile, sensitive information gets protected by tokenization.  

Visa also expects an increase in the use of the debit model in e-commerce. The number of online stores that carried out debit transactions under the Visa banner increased 70% from June 2018 to July 2019. 

Visa said that the new 3DS 2.0 authentication standard assesses whether an operation is legitimate or fraudulent right at the start of online payment with both credit and debit cards, examining ten times more risk factors such as the type of browser and device.

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