Business

Brokers will also be able to offer payment services in Brazil, starting in 2021

For Brazil's National Monetary Council, this is another measure to encourage competition in the sector

Photo: REUTERS/Ueslei Marcelino
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  • The country’s Central Bank said that companies should choose between maintaining registration accounts, a model currently in force, and using payment accounts;
  • According to the monetary authority, the measure should encourage competition between payment service providers and expand the scope of operations of brokerage firms.

Brazil’s National Monetary Council (CMN) has endorsed that securities brokers and distributors start providing payment services to their clients as of January 2021, according to a decision published by the Central Bank on Friday.

The country’s Central Bank said that companies should choose between maintaining registration accounts, a model currently in force, and using payment accounts.

READ ALSO: Brazil postpones first phase of open banking to February 2021

“Regardless of the modality chosen, the funds kept in the accounts, while not committed to the settlement of transactions on behalf of clients, must be invested in federal public securities or kept as cash by the intermediation companies,” said the BC.

READ ALSO: In the first full operation week, Brazil’s PIX recorded 12.2 million transactions

According to the monetary authority, the measure should encourage competition between payment service providers, in addition to expanding the scope of operations of brokerage firms and distributors of securities and improving the management of resources in the intermediation segment.

Translated by LABS

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