MAGALU payment system promises to be better than PIX

MAGALU payment system promises to be better than PIX
MAGALU payment system promises to be better than PIX

Magazine Luiza’s fintech, the company’s parallel financial services company, made an announcement about the newest system that facilitates shopping for e-commerce. The Payment Transaction Initiator (ITP) is launched with the Open Finance function and considered, in a way, simpler and more practical than the PIX.

Read more: Magalu’s strategy to increase sales is to release lines of credit for customers

The company’s first customer is KaBuM!, an e-commerce for technology and games.

According to a statement made by the company, the instrument gives the user the option to initiate a payment order without having to access the bank’s website or application, or copy or paste a barcode, for example. Magalu’s manager, Patrícia Iked, who is also responsible for the company’s Open Finance area, said that the use of this tool – ITP – is a very interesting opportunity for companies to improve the customer experience and also to reduce dropouts at the moment. end of purchase.

Discover Magalu’s new payment method

Only with the advent of Open Finance, which inaugurates the sharing in a standard way about data and products, financial information and services by institutions that are authorized to use the tool by the Central Bank (BC), it became possible to create this new modality payment initiation. A license from the entity was received by fintech to use the modality that is already available at the KaBuM! checkout.

When the customer makes a purchase, he can use the balance of the bank where he has an account to be able to make a cash payment. ITP removes that need for, for example, having to copy and paste the PIX code or even the barcode of a product to the financial institution’s website or application.

This new system also makes life easier for companies when it comes to coordinating inventories, since payment is accounted for in a much more agile way, according to information from Magalu. Transactions typically take a maximum of five minutes to clear. On the other hand, a boleto can end up taking up to three business days. The implementation of ITP technology also reduces the company’s operating costs, as it ends up requiring far fewer intermediaries in the processes to make payments.

What is ITP?

This is the new modality that was created by the Central Bank through a resolution of BCB number 24 of 2020, which ends up regulating the provision of service for payment intermediation. This is the new Payment Transaction Initiator, which is being shortened to ITP. It aims to technologically connect applications and websites to financial institutions, thus ensuring that payments take place in a secure manner. Companies that operate as an ITP are regulated by the BC.

The article is in Portuguese

Tags: MAGALU payment system promises PIX

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