Within the framework of the Latam Fintech Market held in Barranquilla, the topic of The immediate payment system that the Bank of the Republic is implementing and will be called Bre-B was a major part of the agenda.
This is a matter of public interest at the door the entry into operation of this system in May 2025, according to the schedule of the Bank of the Republic and which will interconnect all payment systems and digital wallets in real time.
Read: Colombia prepares for a new model of immediate payments
In the discussion on this topic, Orlí Machado, CEO of CMSW, the firm responsible for the development of Brazil’s instant payment system PIX, considered a global success story and a Pronus partner in Colombia, participated in the panel Immediate and Interoperable Payments: the key to transforming the Colombian economy.
According to Orli Machado, CEO of C&MSW, It is in the interest of banks in any market in the world to have a low-cost instant payment system because “although they may lose a portion of the income that comes from the transfer business, can earn five times more with the new service architecture.
The Brazilian executive said that Colombia is the hottest Latin American country right now on this topic, where regulators and the financial market are working together to create a really promising payment system. “And CMSW is there to make its contribution. Interoperability in digital payments is creating new opportunities and challenges for the Colombian economy,” he said.
Read: They define which company will be the provider of the immediate payment system in Colombia
For Machado, “Colombia has great potential. With our Colombian partner Pronus and its CEO Camilo Zea, we listened to industry leaders share their perspectives on the impact of digital payments and how they are collaborating to advance in this field.”
PIX
iStock
Just to mention, MSW has not only 25 years of existence, but 40 years of experience in payments and Orli Machado, is one of the greatest authorities on the subject in the world, which has allowed the company to reach the leadership position in the Brazilian market and therefore begin international expansion, said Ricardo Lanfranchi, CEO C&MSW USA.
“The collaboration between C&M and Pronus is just the beginning,” said Orli Machado, looking ahead, in Colombia, As the instant payment system develops, more financial institutions are expected to join in, adopting new technologies and services to meet consumer demands. The key to success will be adequate regulation, robust infrastructure and continued cooperation between the public and private sectors.
“Bre-B has a number of challenges that, in the opinion of Pronus Payments, our operator of instant payment infrastructure based on the technology used in PIX-Brasil, have not been resolved by participants and regulators,” said Camilo Zea, CEO of Pronus.
Zea said that first of all, there is no obligation for interoperability yet, so so-called liquidity “gardens” such as wallets or payment systems where interoperability only applies between a few participantsthey still maintain their privilege as a “closed” club.
Therefore, he considered that “Only when the regulator forces these gardens to be interoperable will the barrier that grants current privileges to a few participants be broken and we will be able to implement the system in a truly powerful way and under conditions of competition and zero price for users. It is in this interoperability where the enormous opportunities for financial inclusion for all Colombians are born.”
Immediate payments
iStock
For the CEO of Pronus, the market and the regulator “have over-emphasized the role of P2P payments (between people). Although such payments are the basis of the scheme, they will not generate income for banks in the near future, so these banks must redefine their strategy to look for a technology that allows them to not only offer P2P payments but also other value-added services that would charge (and would more than compensate for the drop in P2P income) such as payments between local companies, or between local and international companies, all in real time, collections and invoice reconciliations in the context of said payments between companies, cross-border payments, etc.”
According to Zea, “the bad news is that while some of the traditional local payment systems could offer or even currently offer immediate P2P payments, they do not have the technology necessary to offer other value-added services for society. Immediate payments are for the benefit of people (P2P), but also of small, medium and large companies, as well as the relationship of the Government with them. The current payment system in Colombia does not technologically allow extending to companies the great benefits of immediate payments.”
Add Comment