The customers of fintechs credit cards will be able to make purchases or financial transactions without the need to enter the institution’s application, just by clicking on links provided by the resource recipient. The National Monetary Council (CMN) authorized these institutions, a type of startups financial institutions, to act as payment transaction initiators.
Created in the third phase of the open finance, progressive sharing of information between financial institutions, payment transaction initiators allow the transfer of funds without the need to enter the application from which the funds originate. The tool has been used for a few years for credit cards from large banks, but has expanded to other payment methods and to other types of financial institutions.
In a note, the Central Bank (BC) explained that the change will improve competition in the financial sector. “This improvement is complementary to the activities of the fintechs of credit and, for the Central Bank, it has the potential to promote innovations in the National Financial System (SFN) and to increase competition between agents authorized to provide this service, in addition to bringing the necessary legal security to entities in the sector and having strong synergy with Pix”, highlighted the statement.
This is the second easing for the fintechs in the last days. Last week, the BC postponed by six months the prudential capital requirement for fintechs larger companies, which in recent years have started to offer financial services similar to those of banks, but without the same financial regulation. The rules, which would come into force in January, were extended to July 2023.
Since 2018, BC authorizes the operation of fintechs of credit, which are divided into two types. There are 93 Direct Credit Societies (SCD), which lend money with their own capital, and 10 Societies for Loans between People (SEP), which mediate operations between creditors and debtors.
Although the CMN meeting took place yesterday (24), the votes were only released this afternoon (25) because of the optional point in federal public bodies on the day of Brazil’s debut in the World Cup.