New foreign investments in the Brazilian financial market have been facilitated by recent measures that removed the need for a specific authorization from the President of the Republic. Nevertheless, operating a traditional financial institution remains bureaucratic and costly. The November edition of LS Brazil Outlook discusses alternatives to offer financial services in the country.

We begin with a discussion on banking-like services that may be rendered by payment institutions such as card issuers and acquirers, followed by a comparison between these institutions and the heavily regulated financial institutions. Our third article points out that such lighter regulatory regime is complemented by the recently launched sandbox regulation and opportunities it opens for ventures in the foreign exchange and cryptoassets markets. Finally, we stress the lighter regime applicable to financial institutions studying the case of Payment Initiation Service Providers (PISPs), a new kind of payment institution created in the context of the Brazilian Open Banking.

The Brazilian payment services industry is flourishing, and regulation is supportive to new foreign investments in this field. Enjoy your reading.

On this issue | November 2020

The new “banking” activities of payment institutions – an opportunity for entrepreneurs

The new “banking” activities of payment institutions – an opportunity for entrepreneurs

New rules freed payment institutions from the regulatory burden applicable to a financial institution and its stringent requirements and allowed them to render certain banking-like services, such as custody of funds and client financing

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Financial and payment institutions: a comparison

Financial and payment institutions: a comparison

A comparative analysis shows that payment institutions are subject to lighter requirements than financial institutions in terms of capitalization, incorporation process, internal structures and other aspects, in exchange for not being allowed...

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New Brazilian financial regulation welcomes ventures in FX and cryptoasset markets

New Brazilian financial regulation welcomes ventures in FX and cryptoasset markets

Guidelines for the Brazilian sandbox for financial and payment innovations have just been established. The sandbox creates opportunities for ventures in the foreign exchange and cryptoassets markets, and the first cohort is scheduled for 2021

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Open banking and payment initiation service providers: new opportunities for foreign digital businesses

Open banking and payment initiation service providers: new opportunities for foreign digital businesses

Open Banking and payment initiation service providers reduce costs and create business opportunities for foreign digital businesses

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