*By Túlio Iannini
After the success of Pix, an instant payment system, which reached 134.5 million unique users in a single day. Now new services, developed by the open finance ecosystem, promise to revolutionize the financial market, with emphasis on the Payment Initiator (ITP), a modality that is part of phase 3 of open finance and that allows users to initiate payments directly from their bank accounts for merchants or service providers, bypassing traditional payment methods such as credit or debit cards.
Payment initiation services are usually performed through application programming interfaces (APIs) that connect the user’s bank account to the merchant’s payment platform. Research points out that ITP can reach an impressive 20% share of all volume generated by Pix in 2023.
This innovative solution provides greater security, cost reduction for consumers and agility when buying. In e-commerce, for example, it reduces the number of steps required to carry out a transfer or payment (transactions that lasted 50 seconds can be reduced to 30 seconds).
In addition, with the ITP it is possible to expand possibilities for strategic partnerships between fintechs and technology companies. By joining together, these companies will have access to technology and licenses from institutions authorized by the Central Bank and that offer this type of service. With this partnership, fintechs and technology companies will be able to broaden their horizons in a market traditionally controlled by large financial organizations, offering innovative and competitive solutions through payment initiation.
With ITP it is possible to enhance the Customer Experience by enabling direct bank-to-bank transfers, providing a smoother and more seamless checkout solution for customers and potentially increasing conversion rates for online merchants. And this is a phase of the tool that will soon offer other possibilities.
In short, the ITP has significant potential to boost the financial market and is leading to the democratization of access to financial solutions for many users of companies such as Magalu, Mercado Livre, Nubank, Shein and several others. With ITP, the prospect of growth in the financial market is positive, we can see a promising and innovative future for more people.
Túlio Iannini is founder and CEO of U4C , specialist in ITP – Payment Transaction Initiator – and entrepreneur in financial technology. He has been working in the fintech market for eight years, having participated in entrepreneurship mentorships at Stanford University, Singularity University and also in the Endeavor Scale-Up program.
Press information:
Alice Vieira
