Central Bank of Brazil regulates new type of payment institution and changes volume parameters for purposes of operating authorization

On 22 October, the Central Bank, through BACEN Resolution 24/2020, changed art. 4 of Circular No. 3,885/2018, including another type of payment institution in the list provided for in the regulation: that of the Payment Transaction Initiator.

The new modality, already provided for in the regulation of Open Banking, consists of a “payment institution that provides payment transaction initiation service without managing payment account” and, necessarily, “without stopping at any time the funds transferred in the provision of the service ”. In other words, “payment service initiation is considered to be the service that initiates a payment transaction ordered by the end user, in relation to the deposit or payment account, commanded by an institution that does not hold the account, to the institution that holds it.”

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