Institutions start operating with payment initiation

The evolution of Pix and Open Finance Brasil enabled a new role in the ecosystem: the Payment Initiation Service Provider (ITP), also known internationally as PISP — Payment Initiation Service Provider. The Banco Central do Brasil has already authorized several institutions to operate as ITPs, including Itaú Unibanco, Banco do Brasil and Mercado Pago, with many others in the authorization or certification pipeline.

In practice, payment initiation makes Pix transactions even easier. Users can pay for purchases via Pix directly inside e-commerces, shopping apps and delivery apps, and can send transfers and payments through messaging apps and social networks — among other benefits.

How does it work?

Payment Initiators use Open Finance APIs to initiate transactions from users' bank accounts. The consumer no longer has to leave the payment flow to open their banking app and run through the manual steps of a transfer. Instead, the payment experience flows naturally, with redirects and pre-filled information.

What are institutions doing today?

Mercado Pago, for example, already offers its customers a payment initiation option that lets them deposit funds from their bank account into their Mercado Pago account — a flow also known as Cash In.

See an example of the Cash In flow via payment initiation:

Another example is payment initiation embedded in e-commerce checkouts, simplifying the purchase experience:

How to become a Payment Initiator (ITP)

To enter the market faster and join Open Finance Brasil as a Payment Initiator, your institution can rely on Iniciador — a software platform focused on Open Payments so you can stay focused on your core business.

We are specialists in Payment Initiation (ITP). Our platform is certified by the OpenID Foundation and compliant with regulations from the Banco Central do Brasil, the Pix arrangement and the Open Finance Brasil Directory rules. Want to know more? Talk to us.