Boku, a global provider of local payment solutions, has received a Payment Institution licence from the Central Bank of Brazil (BCB).

Expanding Operations in Brazil

This authorisation enables Boku to operate as a payment initiator and issue electronic money, enhancing its market presence in Brazil’s Open Finance ecosystem. As a Payment Service Provider (PISP), the company aims to introduce Pix Automático to merchants early next year.

With this new licence, Boku can support individuals without credit cards across LATAM, offering secure recurring payment solutions for streaming services, subscriptions, and digital goods. This is in line with Brazil’s efforts towards digitalisation and greater financial inclusion.

Pix, a popular payment method launched by the Central Bank of Brazil (BCB), is widely used by over 76% of individuals and favored by younger consumers who use digital-first platforms like Nubank. Since its introduction, Pix has accounted for 45% of all payments in 30% of e-commerce transactions, representing a significant shift towards digital payments.

Pix Automático, a recent addition to the system, facilitates automated recurring payments for subscriptions and bills. This feature meets customer demand for convenience in a market prioritizing ease of use over brand loyalty. It aligns with Boku’s 2024-2029 Global E-commerce Report, which suggests that 78% of Brazilian respondents would switch payment methods for benefits such as lower fees, increased security, and improved user experience.

Boku views Pix Automático as a significant step in expanding local payment options in Brazil, fostering financial inclusion and simplifying everyday transactions. The company is committed to helping global merchants tap into this growth by offering secure, accessible alternatives to credit cards. With the new licence, Pix Automático will launch early next year, underlining Boku’s dedication to innovation and choice in local payments.