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AZA Finance, an African fintech company, a global leader specialising in providing secure and efficient financial infrastructure for payments, foreign exchange, and treasury services, has opened a new corridor for money transfer operatives to make remittances to Brazil with PIX and TED. This move is part of AZA’s strategy to expand its footprint and make cross-border payments more accessible and efficient in the Latin American market.
What is PIX?
PIX, “Instant Payment System,” is a new payment system introduced by the Brazilian Central Bank in 2020. A simple QR code or mobile app allows individuals and businesses to make instant payments and transfers 24/7, including weekends and holidays. With PIX, transactions can be completed in seconds, compared to traditional bank transfers, which take days. The launch of PIX has revolutionised the way Brazilians make payments and transfers, contributing to a significant increase in remittances in Brazil. PIX is now Brazil’s leading money transfer method, far surpassing cash transfers, cards, or wire payments.
What is TED?
TED (Transferência Eletrônica Disponível) is a type of electronic funds transfer system used in Brazil. It allows individuals and companies to transfer money between different bank accounts within the country. TED transfers are typically processed on the same day or within a few hours, making them a convenient and efficient payment method.
The impact of PIX and TED on remittances in Brazil
According to data from the Brazilian Central Bank, remittances to Brazil reached a record high of $11.4 billion in June 2021, up 10% from the same period last year. Since its launch, PIX has gained massive popularity in Brazil, with over 1.2 billion transactions worth more than $460 billion in its first year of operation. In August 2022, PIX had 124 million active users (60% of Brazil’s 213 million total population)
The launch of PIX has contributed to the increase in remittances in Brazil. According to the World Bank, Brazil is the second-largest recipient of remittances in Latin America and the Caribbean, with over $7.6 billion received in 2020. With PIX, money transfer operators can now offer faster and more convenient payment options to their customers, which is likely to increase the volume of remittances in Brazil further.
Remittance flows back and forth from Brazil have been growing steadily over the past few years. According to the Central Bank of Brazil, remittance inflows in 2020 reached a record high of $11.2 billion, up from $10.5 billion in 2019. This growth is expected to continue in the coming years, especially with the launch of new payment systems like PIX.
While TED transfers are not directly associated with remittances, they have impacted Brazil’s overall banking infrastructure and financial system. TED transfers have provided a faster and more reliable way to send money within the country, reducing the reliance on traditional methods such as checks or physical cash. This has contributed to greater efficiency and convenience in domestic financial transactions for individuals and businesses.
AZA Finance Launches Instant Money Transfer Corridor to Brazil
Recognising Brazil’s status as one of South America’s largest economies, AZA Finance offers a bank payment corridor. This corridor simplifies sending funds to Brazil while leveraging the power of Brazil’s domestic payment systems, PIX and TED. PIX, Brazil’s instant payment system, has transformed money transfers within the country. With AZA Finance, users can take advantage of the speed and convenience of PIX for real-time fund transfers. Additionally, AZA Finance’s bank payment supports TED (Transferência Eletrônica Disponível), Brazil’s traditional interbank transfer system, facilitating larger transfers between different banks within Brazil. Whether users prefer instant transfers with PIX or require the flexibility of interbank transfers with TED, AZA Finance has got them covered.
About AZA Finance
AZA Finance is an African fintech company offering secure and efficient financial infrastructure for payments, foreign exchange, and settlement. With over a decade of experience, AZA Finance is committed to helping your business thrive in Africa. With our API and web platform, it has never been easier to transact, exchange, payout, and settle in all major African and G20 currencies. Our global infrastructure is a trusted gateway for leading global remittance providers, multinational corporations, and innovative enterprises worldwide.
- More than ten years as Africa’s leading cross-border payments provider
- Transparent pricing and deep liquidity across 115+ markets via our robust API and intuitive web platform
- Certified by world-class security standards, including PCI-DSS, ISO27001 and SOCII
- Fully regulated and licensed, including by the Bank of Uganda, the Bank of Spain and the UK Financial Conduct Authority
- Direct payout to bank accounts, mobile money wallets, and cash
- Featuring seamless onboarding and automatic beneficiary screaming for effortless transfers
- 99.5% uptime and 24/7 support, making it easier than ever for your business to operate
Click here to learn more.