Commerce

Everything you need to know about Boleto Bancario

The boleto bancário or boleto for short is preferred cash payment method in Brazil. A boleto is printable document that is used to complete an array of purchases with cash.

Ronaldo Santos

Performance Specialist
May 4 2017

The boleto bancário or boleto for short is preferred cash payment method in Brazil. A boleto is printable document that is used to complete an array of purchases with cash. A boleto can be used to pay a utility bill, buy a product in a store and/or order an online product.

There are unique boletos for each purchase that the merchant modifies for their company or service, however, each boleto has the following basic features: barcode, serial number, company name, customer information, name of boleto issuer, expiration date, bank code, and the total amount due.

Why do Brazilians prefer this payment method?

  • 40% avoid providing credit card information online because of fraud risk
  • Credit is difficult to obtain and interest rates are exorbitant
  • Boletos are installment friendly
  • Convenient processing in over 64K locations or using online banking

How does a boleto bancário work?

  1. The boleto is generated for the customer purchase.
  2. The customer has until the expiration date to pay the boleto in cash or online before garnering late fees.
  3. Payment is confirmed by the issuing bank within 3 business days.
  4. Finally, the bank credits the payment in the merchant account.

Where can it be processed? Requirements for accepting boleto transactions in Brazil

To accept boleto payments without a local processing partner, your company must establish a local entity and open a Brazilian bank account. The process of opening a local branch includes: submitting a request to the government, registering at the board of trade and sending foreign capital through an authorized Brazilian institution, among other formal requirements. All documents must be submitted in Portuguese and ultimately the branch would be subject to Brazilian laws, regulations, and taxes.

By partnering with EBANX, your company will benefit from offering boleto and other payment methods to Brazilian buyers without needing to establish a local entity or open a Brazilian bank account.

How many Brazilians use boleto to complete online purchases?

All Brazilian adults use boleto at least once a month for a utility bill or to pay an installment, or parcelamento, on a product they took home months ago; however, in comparison, very few Brazilians use boleto for ecommerce and omnichannel purchases. According to an E-bit/Buscaspé study, only 19.6% of local ecommerce purchases and 11% of international online purchases were made with boleto in 2015. If nearly all Brazilians use boleto, then why is boleto not a popular method in ecommerce?

Not many merchants, local or international, offer boleto as a payment option on their ecommerce websites.

Nonetheless, boleto is an untapped payment tool that can open the market to millions. Credit is hard to obtain in Brazil; in fact, over 60% of Brazilians do not have access to an international credit card and 40% prefer not to put credit card information online because of the high fraud risks. Brazilians trust boleto as a payment option and when the option is given it is preferred over credit card. E-bit reported that from 2014-2015, credit card payments in ecommerce declined by 0.9% and correspondingly, boleto payments increased by 0.8%.

How do boleto payments work in Brazil?

Why would your cross-border business benefit from offering boleto?

Boletos are available to the entire Brazilian population, not just the 37% who have access to an international credit card, and they are installment friendly, which is a regular practice in Brazil. Lastly, all boletos have a zero chargeback rate and are a low fraud risk.

EBANX is a local payment processor in Brazil and Latin America. We provide international payment solutions such as the EBANX Boleto which has special advantages for our merchants and end-consumers.

Diferences between a standard Boleto Bancario and the EBANX Boleto

Cross-border merchants selling to Brazil can reach a significant untapped portion of Brazilian consumers and increase sales by offering boleto. Boleto is accessible by the entire Brazilian population and has a minimal fraud risk, a confirmation period of 1-2 business days, a zero chargeback rate, and a faster money settlement compared to credit cards.

However, unlike a standard boleto bancário, the EBANX Boleto has exclusive features that are advantageous to merchants and consumers.

EBANX is a leader in cross-border boleto processing with over 1M monthly EBANX Boleto transactions that amount to more than 17M USD per month. The EBANX Boleto drives higher conversion rates than other cross-border payment solution competitors.

EBANX Boleto Exclusive Features

  • The EBANX Boleto is issued by a major Brazilian bank and with your business brand to ensure consumer security.
  • The consumer can print the boleto or save it as a PDF to pay within the three allotted days.
  • EBANX consumers can pay the boleto using their EBANX Account balance in USD, a feature that drives our current customers to your new consumer base.
  • The boleto serial number is highlighted allowing the consumer to easily copy it and pay it online.
  • Instead of printing the EBANX Boleto, consumers can present the boleto at a physical store through the EBANX mobile App.

EBANX Boleto Business Practices

Why you should consider a partnership with EBANX

  • 24/7 Customer Service: Fluent in the native language of the consumer and available by email, phone, or social media (Facebook, Instagram, and Twitter)
  • Friendly Customer Engagement: Personal email reminders and social media outreach
  • 15M EBANX End Consumers: Trusted among over 15M consumers
  • Specialized Fraud Prevention: Fraud team expert in Latin American payment methods and advanced anti-fraud systems
  • Settlement Sent to You: Receive payment anywhere in the world
  • Less Bureaucracy: You don’t need to establish a company in Brazil/Mexico/Chile/Colombia/Peru

Ecommerce Leaders Who Offer EBANX Boleto

How merchants can benefit from offering Boleto

Boleto is the best method to access the entire Brazilian population. Without boleto, cross-border business can only reach about 37% of Brazilians who own an international credit card. Hence, boleto is a significant payment alternative.

General benefits of offering boleto include:

  • Access to 100% of the Brazilian population
  • Minimal Fraud Risk
  • Confirmation usually within 1-2 business days
  • No chargeback rate
  • Faster money settlement in comparison to credit cards

Does offering boleto cannibalize other payment methods?

Boleto and credit card sales growth BrazilBoleto is compatible with other payment methods such as credit card or Paypal. Once accepting boleto payments, international merchants generally experience an overall sales increase in Brazil—across all payment methods.

An EBANX partner in the retail industry experienced over the span of 9 months, an increase in sales of over 75% for boleto and credit card transactions, amounting to more than 130M USD.

Are there any additional fees for offering boleto?

Boleto processing expenses depends on whether your business establishes a branch in Brazil or partners with an alternative payment processor. Overall boleto is a cost friendly payment solution. Since boleto is not a card related payment type there is no chargeback rate; furthermore, Brazilian customers do not have to pay extra fees when they choose to pay in boleto.

For many cross-border merchants, offering boleto through a payment processor is the most convenient and efficient option. EBANX is an alternative payments leader for cross-border boleto transactions, processing over 1M EBANX Boleto transactions a month.

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