When given the choice, Brazilians use national payment methods for about 90% of their online purchases. The country’s online payments market is restricted by law, dominated by a few local banks, and has its own standards. Domestic payment solutions are also more cost-effective for consumers, since they save the 6.38% IOF tax applied to international transactions and the cost of currency conversion.
Domestic Credit Cards
Credit cards issued by local banks are in most cases limited to national purchases in Brazilian real. Credit card payments with installments are an absolute must in Brazil. Payments by installments can represent 75% or more of all credit card payments, depending on the products sold by an online store.
“Boleto bancário” is the leading push payment method for businesses as well as consumers. It enables anyone to pay for online purchases, in cash at any bank branch, at ATMs or electronically via online banking. It is a secure payment method since there is no chargeback risk.
The drawback of boleto bancário is the delayed payment confirmation which might take up to three business days. That’s why PagBrasil has developed Boleto Flash®, the only boleto in the Brazilian market with a same-day payment confirmation. Our unique technology allows a paid Boleto Flash® to be confirmed within one hour on business days. Boleto Flash® is also responsive to frictionless payments on mobile devices.
Debit Cards and Online Banking Transfer
Online debit card payments and bank proprietary online transfer payment methods are growing in share. These methods are appealing because of their instant payment confirmation and lack of chargeback risks.
Debit cards are still a novelty for e-commerce in Brazil and have only recently been made available for online payments. Nevertheless, combining card present and online payments, debit card payments represent 35% of all card payments and 50% in terms of the number of transactions, being situated slightly above credit cards. By the end of 2015, there were nearly 100 million active debit cards in Brazil and over 86 million active credit cards.