Boleto has become a very popular payment method in Brazil over the past few years. Since its introduction in 1993, thousands of vendors in the country have commonly used Boleto payment method. Data from the Brazilian Federation of Banks shows that over 40,000 processors across the country currently use the payment method. With this level of market capitalization, Boleto payment method is considered among the most commonly used methods within the country, with active trust from the local population.
What is Boleto? Exploring Boleto’s Popularity in Brazil
The word Boleto means “ticket” in Portuguese.
The Boleto payment method is used across Brazil for different use cases. Some common use cases include rent payment and eCommerce purchases. Thousands of vendors support Boleto because of its ease of payment and security. Common vendors include ATMs, post offices, and banks around Brazil.
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 use the Boleto method.
The condition of the Brazilian Banking industry is a major reason behind Boleto’s growth. Over 55 million people in the country don’t have their own bank accounts. Even among the people who have bank accounts, there is a general reluctance to make online payments.
A major reason for that fear is credit cards and their reputation. Users don’t want to share their banking details online. This is why a payment method like Boleto is necessary for the country.
How Does Boleto Work? – Exploring the Dynamics
When customers decide to use Boleto, the payment process becomes very simple. Customers can simply create a voucher for their desired transaction and then receive a payment confirmation email. People with bank accounts can easily issue a Boleto with details of the payment integrated into the system. Boleto is practically a push payment that operates similar to creating 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 can receive a payment confirmation that notifies them of the payment success. The completion of the payment can take a slightly longer time because of the payment process.
Key Features of Boleto payment method in Brazil
Boleto offers several 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 most 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 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 can 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 and installment payment options.
The introduced installment payments come with a vested interest of up to 5% to enhance the merchant’s cost. Boleto significantly reduces the cost because merchants are free from the complications of the selling process. They only have to deal with the Boleto system.
Because of the vested convenience for users, Boleto has aggressively gained popularity in the country. Firstly, Boleto users can make payments in their local currencies in Brazil by using their bank account or cash. Secondly, The Boleto payment method does not need credit cards for the payments. And lastly, Merchants also can 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 Boleto is sent to the customers again via email if the initial sale fails. As a result, Boleto improves retargeting for businesses. Especially in the eCommerce sector, retargeting opportunities can significantly positively impact enhancing conversion and improving bottom-line revenue for the company.
Simplifying Payment Management 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 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 receive payment from all customer formats. Moreover, our service area covers over 95% of payment options within Brazil.
In conclusion, Oceanpayment provides solutions to help Brazilian businesses grow. We only charge minimal payments to end consumers and keep the process simple. Our payment solutions streamline payment and provide an easy payment method to consumers in Brazil. We have designed our solutions to improve customer satisfaction and create an exceptional experience.