Open Finance, an open banking data system created by the Central Bank, will make payments via Pix more practical and faster. The Payment Transaction Initiator (ITP) is a tool for e-commerces that aims to eliminate some steps of traditional means of payment, reducing purchase time by Pix by up to 50% – as shown by an ABFintechs study.
Currently, to make an online purchase through Pix, several steps are required, including the need to copy the Pix code, leave the website, open the bank application, log in, paste the Pix code, authorize the transaction, return to the website, etc. With the ITP, the consumer must choose a bank, where he will be immediately transferred to the Pix area, with all transaction information already filled in. After the user approves the transaction, it will be transferred back to the website automatically.
For Marcel Nicolay, CTO of fintech Malga, reducing the steps required to complete the payment will represent a significant improvement in the PIX payment experience. According to him, in some cases the buyer needs to go through up to nine steps to complete a purchase — which causes many buyers to give up on the acquisition.
How does OpenFinance work?
The Payment Transaction Initiator uses Open Finance’s connections to its Application Programming Interface (APIs) — which is a set of standards that enable communication between banking platforms about a common customer’s information. Allowing, for example, to pay a Pix with a balance from different banks.
The Central Bank intends to take the technology to other means of payment, such as bills, TED and credit cards, but the focus this year is on applying the ITP with Pix. According to a recent survey by MasterCard, the instant payment tool is used in 42% of online business transactions.
According to the executive, fintech Malga is developing a single layer of integration with banks, aiming to offer shopkeepers access to a tool for payments, transfers and other operations performed from the website or application itself — offering a better experience for its consumers.
“As more banks and fintechs are integrated into the startup, we expect payment via PIX to gain even more strength and become the main payment method for digital businesses in 2023”, concludes Nicolay.
