Technology

Brazilian government wants to allow taxes and utilities to be paid also via fintechs

The information was disclosed by the newspaper Valor Econômico. Today, this type of payment is concentrated in the major banks

cash coming out of an ATm machine
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  • In the first nine months of 2019 this service combined revenues of BRL 8.9 billion for Itaú Unibanco, Banco do Brasil, Bradesco, Caixa Econômica Federal and Santander;
  • For now, according to Valor, the market itself is expected to find a solution to make this process more flexible.

Brazil’s federal revenue service agency, Central Bank, and National Treasury Secretariat are considering measures to expand tax and utility payments through fintechs, small banks, and card companies. The information was disclosed by Talita Moreira and Flávia Furlan, staff reporters at the Brazilian newspaper Valor Econômico.

According to the publication, today the collection of these services and taxes is concentrated in the large banks–in the first nine months of 2019 this service combined revenues of BRL 8.9 billion for Itaú Unibanco, Banco do Brasil, Bradesco, Caixa Econômica Federal and Santander.

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Today, when a Brazilian customer wants to pay an electricity, telephone, or tax bill electronically, the government (federal, state, or municipal) or service provider must have an agreement with the customer’s bank.

For now, according to Valor, the market itself is expected to find a solution to make this process more flexible, and the issue has also been discussed with the federation of banks, Febraban, and the Brazilian Association of Banks (ABBC).