Boleto has rapidly become one of the most popular payment formats across Brazil. Introduced in 1993, the payment method is actively used across the country to make payments across different vendors. Data from the Brazilian Federation of Banks suggests that the payment method is actively used by over 40,000 processors across the country. With this level of market capitalization, the payment method is considered to be amongst the most commonly used methods within the country, with active trust from the local population.
Exploring Boleto’s Popularity in Brazil
With the general translation of the world Boleto translating to a ticket, the payment format is actively used across the country for multiple applications. Boleto can be used for a plethora of different use-cases, from paying rent to making eCommerce purchases in different areas. The payment method is accepted at thousands of vendors ranging from ATMs to post offices and in-person banks around the country.
According to data from Checkout, there are over 3.7 billion recorded Boleto transactions in Brazil per year. Over 20% of all eCommerce transactions made in the country are done using the Boleto method.
Boleto’s usage in the country is actively fueled by the banking dynamics in the country. Over 55 million Brazilians do not have access to a bank account. Other people in the country are reluctant to share their sensitive banking details online for purchases. This makes an alternative payment method like Boleto ideal for the local population.
How Boleto Works – Exploring the Dynamics
When customers opt for Boleto as their preferred payment method, they are able to have access to a voucher that is created specifically for that particular transaction. The transaction is then sent via email to communicate the status of the payment. Anyone with an active bank account has the ability to issue a Boleto with the dynamics of the payment embedded within the payment sent forward.
Boleto is practically a push payment that operates similar to the creation of bank wires. When customers are ready to make Boleto payments, they can take it to a processing location or seamlessly make the payment online. Customers are able to receive a payment confirmation that notifies them of the payment success. The actual payment completion might take a slightly longer time period based on the dynamics of the payment.
Key Features of Boleto payment method in Brazil
Boleto offers a number of practical improvements to the conventional payment system that make it the ideal payment method for use within the country. Here are some key features that make Boleto stand out.
Local Consumer Trust
In a country where the wide majority of people still prefer to make payments using cash, Boleto has emerged as a trusted payment source by simplifying the payment process beyond the usage of credit cards. The payment format does not require users to provide their credit card information and has wide compatibility with existing forms of payment available throughout Brazil. This trust has also been supplemented and developed over the course of the past two decades. Since the introduction of the payment system, Boleto has become a recognized name in the local financial landscape with streamlined payment support for people across the country.
Because of Boleto’s secure payment structure, vendors have the ability to offer discounted deals and offers if customers opt to make payments using Boleto. These vouchers include a descriptive detail of the transaction amount and the payment due date to simplify the payment processing and ensure that the transactions are completed within time. The discounted deals and payments are further streamlined thanks to the upfront nature of the payments. Businesses offer 5-10% discounts to companies to simplify payment acceptance along with installment payment options.
The introduced installment payments come with a vested interest of up to 5% to enhance the merchant’s cost. With Boleto, this cost is significantly reduced because merchants don’t have to deal with the complications of the conventional sale process.
Because of the vested convenience for users, Boleto has aggressively gained popularity in the country. Boleto users have the ability to make payments in their local currencies in Brazil by using their bank account or with cash. No online credit card is required to make payments using the Boleto payment method. Merchants also have the ability to seamlessly accept payments from vendors with bank guarantees. This mitigates merchant risk and simplifies the payment for all involved stakeholders.
Improving Cart Abandonment
The Boleto generation process assists in decreasing cart abandonment by providing businesses with the ability to target customers that ended their sales in the cart. The generated Boleto can be sent as a method of retargeting customers after the initial sale fails to be executed. Especially in the eCommerce sector, retargeting opportunities can have a significant positive impact on enhancing conversion and improving bottom-line revenue for the company.
Simplifying your Payment method in Brazil with Oceanpayment
It can be challenging for local businesses to navigate the payment integration landscape due to the hurdles involved in the process. From dealing with the technical challenges to the broader regulatory requirements, it can be much simpler to work with a professional company to streamline your process and to help you get started with efficient payment processing.
Oceanpayment is the optimal partner to help you integrate Boleto and start receiving payments for your products and services. We help you seamlessly receive Boleto payments with integrated support throughout the implementation process. Oceanpayment also has extensive experience in providing other local payment solutions with support for local credit cards, banking transfers, and other payment formats to ensure that vendors are able to receive payment from all customer formats. Our service area covers over 95% of payment options within Brazil.
Oceanpayment’s payment solutions are centered around local services in Brazil with minimal charges directed towards end-consumers. Our payment solutions are designed to streamline payment acceptance and provide a comprehensive global payment solution for consumers in Brazil and beyond. Our solution delivery is designed to enhance customer satisfaction and improve conversion rate.