Bre-B: Advancing Real-Time Payments and Financial Inclusion in Latin America

In 2023, Latin American fintech witnessed a decline in investments but is on a rebound path with innovations like Bre-B in Colombia aiming to enhance real-time payments. Dock’s collaboration with Credibanco is crucial in developing financial systems that promote inclusion and efficiency. As the fintech landscape evolves, embedded finance solutions and digitized B2B services are becoming vital components for future growth in the region.

The Latin American fintech sector has demonstrated resilience despite facing challenges in 2023, with less than $2 billion in investments, a stark contrast to the $6 billion seen in 2021. As investment levels rebound, the focus shifts towards finding sustainable growth paths for the future, particularly in Colombia and the broader region. Em Conversa aims to delve into these developments and the potential for fintech resurgence in 2025.

The success of Brazil’s Pix has been monumental in shaping the Latin American payments landscape, with an average of over six billion monthly transactions reported in Q4 2024, according to Matera. Countries like Colombia are now poised to adopt similar platforms, with Bre-B being introduced as a solution to enhance transaction efficiency, lower costs, and increase financial accessibility for the unbanked population through secure technologies like QR codes.

Dock, a digital payments provider in Brazil, is collaborating with Colombian firm Credibanco to launch Bre-B. This partnership leverages Dock’s global platform, Dock One, to facilitate essential payment systems tailored to local regulations while implementing features like card services and real-time payments. The initiative aims to enhance the efficiency of payment processing in Colombia and support broader financial inclusion initiatives across the region.

Dock’s CEO, Antonio Soares, emphasized the significant role of real-time payments in improving financial inclusion in Latin America, particularly in countries like Colombia where traditional banking systems may be concentrated. Bre-B is set to streamline transactions by minimizing unnecessary intermediaries, reflecting a trend observed in Brazil when Pix was launched, reinforcing the importance of adapting to local needs for effective fintech solutions.

He further elaborated on how the regulatory experiences from Brazil will inform Bre-B’s implementation in Colombia, where financial ecosystems differ, yet share similarities. While the Brazilian Central Bank oversees a centralized system, Colombia’s financial landscape includes a mix of centralized and decentralized players, necessitating tailored approaches to ensure competitive and inclusive growth in the real-time payments domain.

Looking at the future, Soares noted that technology will enable other regions to catch up with Brazil, benefiting from the scalable advantages of fintech innovations. The varying levels of card penetration across Latin America present unique opportunities for adopting real-time payments while infrastructure disparities need to be addressed to facilitate broader technology acceptance.

Moreover, financial inclusion is being driven by embedded finance models that allow businesses to leverage their customer insights to offer tailored financial services. Transportation and delivery companies exemplify this trend, providing personalized financial solutions that traditional banking may not efficiently deliver.

As the payments sector evolves, opportunities are emerging in both B2B and cross-border transactions. Although B2C and P2P developments dominate the current market, there remains substantial potential for digitizing B2B services and modernizing traditional cross-border offerings. Prioritizing financial inclusion within Latin America remains imperative before expanding into additional markets.

The emergence of real-time payments in Latin America, particularly through platforms like Bre-B, signifies an important step towards enhanced financial inclusion. With collaborative efforts between firms such as Dock and Credibanco, coupled with technology advancements, there is optimism for leveraging fintech in overcoming historical challenges within the region’s financial landscape. Moreover, the ongoing trends indicate a promising future for both B2B and cross-border payment innovations focused on tailoring services to meet users’ diverse needs.

Original Source: thefintechtimes.com