Payment Methods in Brazil

An overview of the most popular payment methods in Brazil and how to implement them in your business to reach more customers and increase sales.

What are Payment Methods?

There are numerous instore and online payment methods in Brazil. From bank transfers to credit cards, having a range of the most popular payment methods available can help your business attract customers and increase its revenue.

Payment methods in Brazil are an integral part of the Brazilian Payments System (SPB). With the governance of payment systems such as clearing and settlement, foreign exchange transactions, financial assets, and securities transactions, the SPB has made progress in making payments in Brazil more efficient and secure.

The most popular Payment Methods in Brazil

According to Research and Market’s report, Latin America Payment Methods 2019, Brazil is the largest e-commerce market in South America with consumers opting for a variety of domestic payment methods. Among the most popular Brazilian payment methods, there are:

  • Voucher Payments, such as Boleto
    Voucher Payments such as Boleto Bancario
  • Credit and Debit Cards
    Credit and Debit Cards
  • Bank Transfers
    Bank Transfers

Each payment method has its benefits, but having a range of payment methods available for consumers is the key to growing sales in the country.

Overview of Boleto Bancario

Boleto Bancario is a payment method regulated by the Central Bank of Brazil, created in 1993. Particularly helpful for Brazilian citizens who don’t have bank accounts, Boleto Bancario allows people to buy online goods and services. The payment can be made online or offline, and it's up to the customer to choose where and when to pay.

Despite the device, the customer can download the Boleto Bancario's voucher as a pdf file to pay at lottery stores, bank branches, ATM, bank app or accessing their internet banking. All necessary information will be mentioned on the voucher, specifying the total amount, the store where it was purchased, and the maximum due date to complete the payment. It will be processed within 3 business days and after confirmed, the customer receives a receipt. This payment method is secure and reduces the risk of chargeback.

Overview of Brazilian Domestic Credit Card Payments

According to the payment methods survey in the Banco Central do Brasil’s (the Central Bank of Brazil) Report on Financial Citizenship 2018, 31% of Brazilian customers use credit cards to pay for goods and services in store.

What makes credit card payments in Brazil so popular is the ability for citizens to make payments for items using installments. For example, if a customer purchases a television for $2,000, the total amount can be divided into 10 monthly parcels of $200. This can be particularly beneficial for Brazilian businesses who sell more expensive items as it provides customers with a convenient way to pay off large purchases.

According to Abecs (Brazilian Association of Credit Card Companies and Services), customers who pay for credit card purchases over installments make up 62% of credit card transactions each year. With the prevalence of installments among credit card transactions, it’s important that this payment method is available for Brazilian customers.

Overview of Bank Transfer

Another common payment method for Brazilians is bank transfer. It allows customers to transfer the amount of the purchase to a specific bank account mentioned on the voucher. The payment can be completed at any bank branch or ATM, or via mobile or internet banking.

With bank transfer payments in Brazil, the customer selects the payment method at checkout, a voucher that includes payment instructions is generated, and the customer pays for the voucher from any banking institution. It takes one business day for payment to be confirmed.

How to start accepting different Payment Methods in Brazil

You can start offering online payment methods in Brazil needs to be done with proper systems in place. This attracts more customers to your business as they have more payment options. For the most popular e-commerce platforms, payment methods can be installed through:  

  • Plugins or Gateways
    Plugins or Gateways
  • Payment Pages
    Payment Pages
  • API
  • Generating Payment Links
    Generating Payment Links

One of the easiest ways to provide all of the most popular methods of payment in Brazil is through alternative payment platforms. These platforms provide end-to-end payment solutions for all of the payment options available throughout Latin America. This helps businesses in Brazil ensure they are providing popular methods of payment to continue attracting customers and growing sales.

Which Payment Method should you accept first?

If you have feedback from your customers about the types of payment methods they need, this is a good place to start with choosing which payment method to accept first. Alternatively, you could install an integrated payment platform that allows you to use a range of payment methods so customers can pick and choose how they pay. Then, analyzing your results you be able to decide which payment methods you will continue to offer.

The main decision you need to make when it comes to online payment methods in Brazil depends on the size of your business and average turnover.

From small businesses to large enterprises, alternative payment platforms integrate with businesses in a range of ways including platform integration, payment pages, direct API, payment by link, Google Pay, and mobile payments. Integration options across platforms have different costs and benefits, so these need to be weighed up against your business size and structure when you’re making your decision.

While it may seem daunting to offer a range of payment methods in your business, using an end-to-end payment solution will save you time so you can focus on growing your business.