Instant Payments with Credit Card: amplifying possibilities Qorus Banking Innovation Awards 2023

The Instant Payments platform called Pix was released by the Brazilian Central Bank: instant and free, any Brazilian can register several unique Pix keys with any institution and move their money around free of charge. As the Brazilians were storming to adopt the new payment method by the millions (see How Pix Ignited Digital Payments in Brazil, featuring Rodrigo Teijeiro, RecagraPay's founder and CEO), RecargaPay, the payments superapp, amplified the Pix capabilities connecting it to the credit card and BNPL features, creating the "Pay Pix with any credit card" feature and disrupting the financial market. And why is this innovation relevant? The "boleto" payment method used to be the favorite among merchants, because it was the cheapest option to get the payments from their customers. But the boletos had a time issue: it took a few days to compensate any payments, leading the merchants to hold their inventory for the time being until the payments were confirmed. Sometimes, the client changed their mind and did not complete the purchase, leading the merchant to put back the item in the inventory and make it available once again. Not only the activity is time consuming, but also costly. When Pix came around, and RecargaPay amplified it with Credit Card, the whole financial ecosystem started benefiting from the new method: - Merchant's can offer discounts through Pix, since the payment arrives instantly and solves a friction problem with stock/inventory. Invoices became much faster and business predictability made it easier for them to deal with finances. - The client can benefit from a wide range of discounts provided by the merchants (who want to be paid in the Pix system), and does not need to dispose 100% of the purchase money at once, by selecting "Pix with any credit card" feature at RecargaPay and choose the card and in how many installments they want to pay. - RecargaPay's role is simple: settle the purchase debt with the merchant, and agree with the customer how many installments they want to pay us back, charging a small fee. And the whole process is made in only one shopping cart, which is a key differentiator against the competition.