Launched in 2019, Volt.io showed how open banking had the power to transform the way companies, wherever they are, receive payments from their customers. A super open payment gateway was built that allows merchants around the world to receive direct account-to-account payments – in real time.
The iGaming Brazil portal brings today an exclusive interview with Nathan Marion, General Manager of Volt.io, where he analyzes the current existing payment structure, in particular, the revolutionary Pix.
According to him: “Brazil’s real-time payments infrastructure has already profoundly impacted individuals and companies, reducing costs and improving the way people transfer money to each other, accept payments or pay for a product or service.”
Check the interview in full.
iGaming Brazil – How long have you been at Volt.io working with payments?
Nathan Marion – I have been in the payments business directly or indirectly for over 10 years. My background is sales, digital and technology, and I have a passion for financial technology (fintechs), as these can have a real impact on people’s lives and day to day. I really like the example of Pix, an initiative by the Central Bank of Brazil that changed the payment scenario in the country and impacted the lives of many Brazilians.
At Volt.io for 1 year, leading the company’s expansion in Latin America, and contributing to this revolution in instant payments that is taking place all over the world.
iGaming Brazil – According to data, Pix reached about 130 million users in May last year, with 120 million individuals and almost 10 million companies. Could you take stock of instant payments (Pix)?
Nathan Marion – Pix is an adoption phenomenon in Brazil and a global example of implementing an instant payments infrastructure in a country. In Nov/22, Pix completed 2 years, and in such a short time it already had such an impact on our financial system, on people’s lives and on online and offline businesses in Brazil. Some relevant numbers that express that 2022 was the year of the Pix:
– 130 million people, representing 77% of the adult population in the country, use Pix;
– 11 million companies made at least one transaction with Pix;
– From 10/21 to 10/22, Pix grew 118% from 1.2 billion transactions to 2.5 billion transactions;
– P2B transactions (People paying Businesses) grew from 5% to 23% of total Pix transactions.
– Exceeded BRL 1 trillion in transaction volume in a single month (September/22);
– In 2Q/2022 it became the most used digital payment method (number of transactions) in Brazil, surpassing cards;
It’s impressive to see that these numbers continue to grow month-on-month. Last December 20, 2022, Pix broke a new record by surpassing the 100 million transaction mark in a single day. And that impact of instant payments is what we’ll see happening around the world in the coming years.
Pix is an increasingly important part of Brazilians’ everyday lives – and it shows the power and impact that real-time payments can have. And that impact of instant payments is what we’ll see happening around the world in the coming years.
iGaming Brazil – What is the impact of the success of Pix and instant payments on our neighbors in Latin America?
Nathan Marion – According to the President of the Central Bank of Brazil, Roberto Campos Neto, Pix cost less than US$ 4 million to develop. If we look at the rapid adoption by the population and the impact on the economy, with reduced costs for people and businesses, democratization of access to basic financial services, reduced use of paper money, efficiency in the transfer process, among many other positive points; there is no way not to have an impact on the region. And that’s why we already see similar initiatives and many countries mirroring the Brazilian experience to implement their instant payments infrastructure. The truth is that there are currently around 60 countries in the world that are implementing or have already implemented some method or infrastructure for instant payments. We see that this is a global movement in which Brazil stands out.
At the end of last year, Roberto Campos Neto himself announced that the Central Bank would publicly release the Pix protocols allowing other countries and central banks to “copy” for free. It would be a kind of “Open Source” for Pix.
iGaming Brazil – When will Pix become international?
Nathan Marion – The Central Bank of Brazil announced that it was starting conversations with the Bank for International Settlements (BIS), which is also seen as the “Central Bank of central banks” to study an initiative still as a prototype of the Nexus that aims to connect instant payments from different countries creating global connectivity for international transfers using local payment methods. It is a very interesting project, but still in the very early stages of analysis. The market does not expect much progress before 2024, and BC itself has included the “Pix Internacional” project as a “prospect product” in its 2023 agenda.
What many don’t know is that Pix can already be used for international transactions. Through companies like Volt.io, foreign companies can enable Pix as a payment method, thus allowing Brazilian users to pay with Pix (with their Brazilian bank account in Reais), but these companies will receive the amounts in their currency of choice in their bank account abroad. In other words, Brazilian consumers can buy products and services from foreign companies, or send money abroad, paying with Pix.
iGaming Brazil – Why does Volt.io differ from other companies in its sector?
Nathan Marion – Dozens of countries are implementing local payment infrastructures, which are also known as real-time account-to-account (A2A), through their own infrastructure or local payment method, or through an Open Banking regulation.
Real-time A2A is an opportunity for merchants to enable consumers to initiate direct payments from their bank accounts quickly, conveniently and securely. Commercial establishments receive their funds in the same second, instead of days, as with other traditional payment methods, and with significantly lower rates. Instant payments (A2A) are also inherently more secure, authenticated minimizing and eventually eliminating fraud from other methods.
Even so, the new real-time global infrastructure has a domestic focus, as examples of Pix, only available in Brazil. Instant payment forms and methods are owned and operated by local regulators and banks in each domestic market. They are also typically technologically fragmented.
Volt then makes available in a single API/Integration access to all next-generation instant payment networks, enabling any merchant or payment provider to have access to the main instant payment methods in the main global markets.
iGaming Brazil – What are Volt.io’s next projects for this year? And what is the projection of the use of the pix from now on.
Nathan Marion – Volt.io continues to expand globally in the Americas and APAC builds the international real-time payments network by connecting local instant methods (e.g. Pix)_ to a single global platform and enabling companies and payment providers from all over the world to connect quickly connect to all these countries in a single integration with Volt.io.
In addition, we continue to provide the best and most advanced instant payments and Open Banking where we already operate.
Regarding Pix in 2023: In Dec/22, the Central Bank announced at the Pix Forum the priorities and features to be developed for Pix in 2023. The big focus for next year is on a security device to curb the use of “orange” accounts and minimize fraud in the instant payments ecosystem and Pix Automático, which will make it possible to meet the growing demand for recurring payments such as subscriptions, streaming services, public services, schools, among others, which today are only served by the card credit or debit account. In my view, Automatic Pix will further accelerate the adoption of Pix in P2B (Person to Business) which will have an explosion of growth, given the numerous advantages that Pix will bring to this recurrence segment.
The 2023 agenda also includes a new version of the MED (Special Return Mechanism), MED 2.0, focusing on increasing the efficiency of return in case of fraud. I also study more closely, together with the market, Pix Garantido, which are the initiatives already applied by the market for Pix installments, and Pix Internacional, which I explained better earlier. We also have great expectations about better integration of Pix with Open Finance, two BCB initiatives that have a great impact on the Brazilian Financial System, which has a lot of synergy in payments, but still little explored.
