To expert, volume of business is also reflected in increased number of companies requesting authorization to operate
Brazil’s card sector closed 2021 following a 33.1% growth and BRL 2.65 trillion in transactions.
Moreover, the Brazilian economy is becoming increasingly digitized: remote card purchases (credit, debit and prepaid) increased 30.8% from 2020 to 2021, moving a total BRL 569.7 billion. The data are from the Brazilian Association of Credit Card and Services Companies (Associação Brasileira das Empresas de Cartões de Crédito e Serviços/Abecs).
In the assessment of Giancarllo Melito a partner at Barcellos Tucunduva Advogados, the volume of business is also reflected in the increasing number of companies requesting authorization to operate.
"Currently, our office is managing more than 50 requests for Central Bank authorization to operate," reveals the lawyer.
In the last six months alone, nine companies – such as Crystal, Somapay, Celcoin and Shopee – led by the team were authorized to operate as Direct Credit Societies and Payment Institutions (PIs).
Melito explains that companies that wish to become Payment Institutions have to comply with a number of Central Bank of Brazil (Banco do Central do Brasil/BC) rules.
"In general terms, it’s important to demonstrate the company's economic capacity, the lawful origin of resources, the suitability of partners – especially controllers –, and the sustainability of the business," says Melito.
The BC has regulated Payment Institutions since 2013. In March 2022, it released a rule referring to Public Consultation Notice 78, which provides for requirements according to the size and complexity of each institution.
According to Melito, all changes are expected to take effect in January 2023.