Brazilian Report

Tech Roundup: The future of instant payments in Brazil

Publicado em 18 dezembro 2020

Por Natália Scalzaretto

You’re reading The Brazilian Report’s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: how the instant payments industry will fare in 2021. A new IoT law could boost hires in Brazil. And the Justice system’s efforts to go digital.

One of the biggest innovations in 2020, the Brazilian Central Bank’s instant payments system PIX has proven to be a hit. During its first month of operation, 46.1 million individuals and another 3 million companies enrolled, and transactions reached a combined BRL 83.4 billion (USD 16.3 billion), accounting for one-third of all wire transfers in Brazil. Still, the new payment method is in its early days, and users and companies can expect further disruption.

Telecoms team up for instant payments. PIX could become an even bigger part of Brazilians’ financial life after a deal between the Central Bank and telecom operators which would allow for cell phone credit charges to be made through PIX. This would accelerate an ongoing development, as the use of the tool by TIM’s customers to pay their bills rose by 30 percent.

Retail payments. The adoption of PIX as a payment method in brick-and-mortar shops has been considerably low, with 84 percent of transactions using the system coming on a peer-to-peer basis. A few reasons explain why vendors have yet to join the PIX frenzy:

- Firstly, regulators have not been clear on fees for companies using the service. And there is a difficulty in confirming transactions have been successfully processed, as notifications go directly to company accounts, which few employees have access to. Another factor could be the time of year, as companies avoid making changes to their payments structure ahead of major retail dates such as Black Friday or Christmas.

- Outlook. Central Bank Director João Manoel de Pinho Mello expects peer-to-business payments to grow, and the competition among the 750 financial players registered to operate PIX will guarantee lower prices.

Fraud. Though the Central Bank ensures the system is safe, scammers have been using PIX for phishing scams. For Carlos Macedo, founding partner at consulting firm Cortex and an expert in the financial industry, it will be up to the Central Bank and commercial banks to educate customers on this new technology.

Open banking. PIX is the first step of a broader open banking system in Brazil. But the debut of this comprehensive new structure was postponed until February, a move that has not fazed experts. Mr. Macedo sees the Central Bank’s decision to bide its time and minimize glitches as a positive move, given how consequential open banking will be to the financial system’s inner workings.

- “From now on,” he says, “PIX and open banking represent a challenge to both fintechs and banks, as the winning business model might not have been created yet and could even disrupt fintechs.”

WhatsApp Pay. As we reported, financial players believe the Central Bank could grant operational permits to the instant messaging app’s new payments system by Q1 2021.

Brazil passes new IoT law, hopes for 10 million jobs

The Internet of Things (IoT) sector will start 2021 with a major boost, as a new law is enforced scrapping four different taxes for machine-to-machine (M2M) systems. With this measure, the Communications Ministry expects the sector to create up to 10 million jobs in the next few years.

What is the law about? IoT and M2M equipment, such as sensors used in lamps or security cameras, will be exempt from the following taxes for over 5 years: taxes on radio diffusion (CFRP), movie industry development (Condecine), installation inspection (TFI), and operation inspection (TFF).

- Plus, the new legislation scraps the need for previous operating licenses for such machines.

Impacts. Exempting such a basic input as sensors could create an entire chain reaction for automation and data collection, especially for the 4.0 industry, smart cities, healthcare, and agriculture.

- Sergio Sgobbi, Institutional Relations director at the Brazilian Association of IT Companies (Brasscom) says that data collection creates the bases for automatization and the better use of resources. “You could have an agricultural machine measuring soil humidity and the presence of plagues while planting seeds,” he told The Brazilian Report.

- Per Brasscom estimates, IoT investments in Brazil should reach BRL 183.4 billion by 2023.

Hurdles. Tax breaks for sensors is the beginning of a long series of challenges Brazil will face in order to go digital. Mr. Sgobbi quotes the lack of connectivity as the main bottleneck. In his view, one of the top problems is the delay in installation permits for antennas, as current legislation states that cities do not have a deadline to analyze permit requests.

- As we have reported, a new law on antennas was regulated earlier this year, but new regulations on deadlines and permits by city halls are still on the way. “We aim to have it solved in Congress next year. Because without it, there will be limitations, as we need five times more antennas than we have for 5G, due to its lower reach,” says Mr. Sgobbi.

After a disastrous 2020, justice system continues move to digital

The National Justice Council approved three new rules that could beef up its systems’ cyber defenses, in the wake of massive hacks that wiped records of almost 250,000 cases in the Superior Justice Court (STJ), the second-highest ranking court in the country, and the hacking attempts on the municipal elections in November.

What’s new? The CNJ created a protocol to prevent cyber incidents (PPICiber/PJ), another to manage cybernetic crises within the judiciary, and a third to investigate cybercrimes.

- (PPICiber/PJ) will have a set of guidelines to prevent high-level cyber incidents, in order to establish functions to manage risks and allow a proper decision-making process.

- The crisis management protocol will assemble an efficient response to incidents, especially when they happen on a large scale or have long-standing impacts.

- The investigation protocol drafts basic procedures to collect evidence in case of wrongdoing and how to report it to the police.

- When a crime is committed against the institutions of the judiciary, a crisis committee will be set up according to the new guidelines.

Innovation. The CNJ also regulated the use of AI this week by using a platform called Sinapses, which will centralize every source code and AI routine updates. It will also include models ready for production, with a description of their case use, accuracy, and an API for integration. However, it will be up to each court to use the platform, as well as train their staff to do so.

- The use of AI may help the judiciary find solutions to automate legal and administrative procedures, which may shorten Brazil’s notoriously lengthy legal process. Moreover, it could generate savings and provide judges with data analysis to support their decisions.

Take note

- Regulator. The Senate confirmed Vicente Aquino as a board member at telecoms regulator Anatel. In his first two-year term, Mr. Aquino was responsible for analyzing the Time-Warner merger in Brazil, as well as issuing the first draft of rules for the 5G spectrum auction.

- Budget. São Paulo lawmakers slashed the budget of research foundation Fapesp by 30 percent in 2021. The institution has been at the forefront of many coronavirus-related studies but will have only BRL 1 billion available next year, despite the state having a slightly larger budget to work with. Earlier this year, Governor João Doria was criticized for trying to make research centers give their profits to the state, instead of using them for reinvestment — the move was struck down by lawmakers. Internet.

- Telecom operator Claro and agriculture equipment maker John Deere reached an agreement to expand rural connectivity to 15 million hectares in 2021, by installing Claro’s antennas in properties at BRL 20 per hectare. Claro bears the investment, while John Deere dealers will be in charge of sales from January 15 onward. Telecom. Operators Claro, TIM, and Vivo purchased Oi Telecom’s mobile telephony assets for BRL 16.5 billion, an important step in Oi’s court-supervised recovery process. Now the trio’s market share is projected to grow to 29, 32, and 37 percent, respectively. BTG Pactual sees TIM as the biggest winner of them all, snatching 54 percent of Oi’s spectrum, which grants the company an extra BRL 7.3 billion in market value. The deal is pending regulatory approval, however, in what promises to be a lengthy process.

- Cybersecurity. Anatel approved a new cybersecurity framework for the telecom sector. Now, operators will elaborate and implement cybersecurity guidelines to control and prevent vulnerabilities in critical networks, having processes to keep services up and running and a plan to tackle incidents. Anatel will be in charge of providing assistance and following up the process; companies will have 180 days to adapt, starting on January 4.[/restricted]

Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

Essa notícia também repercutiu nos veículos:
Agora São Paulo Folha de S. Paulo Yahoo! Yahoo! Yahoo! Estadã TV Globo CBN Notícias O Estado de S. Paulo Estadã A Tribuna (Santos, SP) Correio Popular (Campinas, SP) G1 Portal Exame Estado de Minas online IstoÉ online O Povo Diário do Grande ABC online UOL BOL Portal R7 Folha de S. Paulo Estadã G1 UOL BOL G1 Portal R7 TV Globo TV Globo Yahoo! O Globo online Diário do Pará O Estado de S. Paulo Folha de S. Paulo TV Cultura Portal da TV Cultura Diário do Grande ABC online O Povo UOL IstoÉ online BOL Portal R7 Estado de Minas online Yahoo! TV Globo IstoÉ Dinheiro online Yahoo! Yahoo! O Globo online O Globo online Estadã Estadã Folha de S. Paulo O Estado de S. Paulo Estadã SBT Interior A Tribuna (Santos, SP) Folha de S. Paulo A Tribuna (Santos, SP) O Estado de S. Paulo Estadã Estadã Folha de Londrina online Santa Portal Mix Vale Portal do Holanda DL News Notícias ao Minuto (Brasil) Jornal da Ciência online Meon ID News Revista Oeste online Jornal GGN MSN (Brasil) Press From Brasil (EUA) Terra Head Topics (Reino Unido) Blog da Cidadania Revista Fórum online Veja São Paulo online IG Assembleia Legislativa do Estado de São Paulo Brasil 247 Blog do Miro Carta Campinas JorNews Rádio Liberdade FM 87,9 Jovem Rio 87.9 FM Pequi FM 87,5 Rádio Cultura FM 101,7 Rádio Nova Aliança FM 105,9 Wiy Solutions Cruesp - Conselho de Reitores das Universidades Estaduais de São Paulo Jornal da USP online Metropóles Votunews CliqueABC A Gazeta RM MSN (Brasil) Bomba Bomba Correio Popular (Campinas, SP) online Dinheiro Rural online Terra Carta Capital online Jornal da USP online Adusp - Associação dos Docentes da Universidade de São Paulo Jornal da USP online Galileu online UNICAMP - Universidade Estadual de Campinas Jornal da Ciência online Jornal da Ciência online Diário de Votuporanga online Jornal da Ciência online Jornal de Itatiba online Guarulhosweb Folha de Valinhos online Zero Hora online FasterNet Mercado News Jornal do Oeste (Toledo, PR) online Mix Vale 6 minutos A Crítica (MS) online Barulho Curitiba Aqui Notícias online Diário do Sudoeste (Pato Branco, PR) online Diário de Notícias online CGN Portal do Holanda JorNews Notícias ao Minuto (Brasil) Rede Massa SBT Tribuna do Agreste Tribuna do Interior online Tribuna do Sertão Vitória News TN Online HiperNotícias Head Topics (Reino Unido) Refugo Jornal da Ciência online Jornal da Ciência online ABC - Academia Brasileira de Ciências A Cidade On (São Carlos, SP) Agora É Terra Brasil Notícias Índices Bovespa Outline (EUA) Rádio Cidade Nova FM 104,9 Rádio Cultura FM 101,7 Rádio Nova Aliança FM 105,9 Rádio SAT Peruíbe SP Pequi FM 87,5 Imbaú FM 87,9 O Liberal (Americana, SP) online Rádio Liberdade FM 87,9 Jovem Rio 87.9 FM eplay Portal A Verdade 24 Brasil Repórter Diário ABIPTI - Associação Brasileira das Instituições de Pesquisa Tecnológica e Inovação Portal Gazeta de São Carlos Jornal GGN Folha Metropolitana Jornal Estação Adusp - Associação dos Docentes da Universidade de São Paulo Plantão News (MT) SEAAC Solidariedade SP Capital Guia Certo USA (EUA) Olhar Capital Portal Alô News Nova Brasil FM 89,7 Última Hora News (Aracaju, SE) Diário de Notícias Diário de S.Paulo USP São Carlos Jornal da USP online Jornal de Mato Grosso Jornal Garopaba Jornal Tijucas 24 Brasil JorNews MSN (Brasil) Press From Brasil (EUA) Terra Jornal da USP online Bomba Bomba Bastidor Político Metropóles Terra Portal da Band Revista Fórum online Yahoo! Finanças Arzo News Rádio BandNews FM Head Topics (Indonésia) Jornal da Franca Jornal da Ciência online Jornal da Ciência online Jornal da Ciência online Head Topics (Indonésia) Extra (Rio de Janeiro, RJ) online Yahoo! Vida e Estilo Democracia Política e novo Reformismo Bomba Bomba Tribuna de Ituverava online Jornal da USP online Blog Pensar Netuno Zero Hora online Folha Vitória online ISN Portal Terra Dinheiro Rural online A Crítica (MS) online Jornal de Itatiba online Guarulhosweb Tribuna do Sertão Correio Popular (Campinas, SP) online Carta Capital online JorNews CGN Leia Já RedePRESS Adusp - Associação dos Docentes da Universidade de São Paulo Assembleia Legislativa do Estado de São Paulo TV Alesp Jornal da Ciência online WatsupAmericas (EUA) USP São Carlos 6 minutos Portal do Holanda Vitória News Jornal do Oeste (Toledo, PR) online Diário do Sudoeste (Pato Branco, PR) online Notícias ao Minuto (Brasil) Aqui Notícias online Mix Vale Diário de Notícias online Tribuna do Interior online Barulho Curitiba FasterNet Tribuna do Agreste Rede Massa SBT Campinas Press Folha de Valinhos online Head Topics (Indonésia) TN Online Esquerda Diário Biblioteca Jurídica Pequi FM 87,5 Repórter Diário O Liberal (Americana, SP) online eplay UDOP - União dos Produtores de Bioenergia Liga Democrática A Notícia Agora Movimento pela Ciência e Tecnologia Pública ADunicamp - Associação dos Docentes da Unicamp Adunesp - Associação dos Docentes da Unesp Diário de S.Paulo Política Distrital Jornal da USP online Jornal da USP online Extra (Rio de Janeiro, RJ) online PSTU - Partido Socialista dos Trabalhadores Unificado Carta Campinas Estação Nêumanne Brasdangola Blogue Jornal da USP online MSN (Brasil) Diário do Litoral (Santos, SP) USP São Carlos Revista Fórum online Bomba Bomba Ata News Mix Vale El País (Espanha-Brasil) online Portal do Governo do Estado de São Paulo Yahoo! Vida e Estilo Yahoo! Finanças Secretaria da Educação do Estado de São Paulo Portal RBN Ternura FM IHU - Instituto Humanitas Unisinos A Tribuna (Santos, SP) online ABC - Academia Brasileira de Ciências Jornal da Ciência online MSN (Brasil) GistTree (Nigéria)