🇨🇴 Colombia Launches Its Own Pix-Style Instant Payments System: BRE-B

Hey Payments Fanatic!

A big milestone for Colombia 🇨🇴 today as the Banco de la República officially launched BRE-B, the country’s new interoperable instant payments system.

It connects banks and digital wallets across Colombia, allowing people and businesses to send and receive money instantly, securely, and around the clock.

More than 3.2 million Colombians have already registered 8.2 million “payment keys”, linking their phone number, ID, or email to their accounts. With BRE-B, transferring money between institutions becomes as simple as sending a text message.

This is Colombia’s answer to Pix in Brazil and UPI in India, and it could be a turning point for digital payments adoption across the country.

Cheers,

Marcel

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GOLDEN NUGGET

🚨 𝐓𝐡𝐞 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 — Processor vs Network Tokens 👇Created by Arthur Bedel 💳 ♻️

𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 (𝐍𝐓) is an industry standard published by EMVCo. First introduced with the launch of ApplePay and the payment networks, NT is gaining traction in the Card on File and wallet markets.

𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐨𝐫 𝐯𝐬 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐬:

🔸 Processor Tokenization (Checkout.com, Stripe, Getnet…) is a proprietary service offered by PSPs, Acquirers and Processors to minimize a merchant’s PCI scope. The generated token, a replacement for a Personal Account Number (hashtag#PAN), is restricted to the merchant and a single PSP environment.

🔸 Network Tokenization goes further by generating tokens in cooperation with the Card Issuer and Card Network (i.e. Visa & Mastercard and others, American Express, GIE Cartes Bancaires) to offer additional benefits to the merchant and protect the PAN throughout the value chain.

𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬:

→ 𝐂𝐨𝐬𝐭 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 - Merchants can optimize costs with Visa’s pricing changes. Security and compliance costs can be reduced since NT reduces the scope of PCI DSS.

→ 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐅𝐫𝐚𝐮𝐝 - Implementing NT offers a higher level of security for CNP transactions. The impact of any potential data breach is greatly reduced since the data is useless when stolen (i.e. 26% decline in Fraud rates).

→ 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞𝐬 - NT involves card issuers unlike PSP tokens. NT can be limited in scope and offer additional payments detail (i.e. 2.1% increase).

 → 𝐁𝐞𝐭𝐭𝐞𝐫 𝐂𝐗 - Card issuers can update NT in real time replacing the need for card members to update the information periodically (i.e. 35% of cardholders stop shopping after one decline).

𝐍𝐞𝐭𝐰𝐨𝐫𝐤 𝐓𝐨𝐤𝐞𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 — 𝐚𝐧 𝐎𝐦𝐧𝐢𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲:

👉 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 - Token information is captured by the merchant and shared with the Token Service Provider (i.e. VGS) and Card Issuer to validate the token and authenticate the transaction. Card Issuer then shares PAR along with the token to complete the transaction.

👉 𝐈𝐧-𝐀𝐩𝐩 - Token information is shared from the digital wallet with the token service provider and card issuer to validate and authenticate the requests. Card Issuers authorize the transaction and share customer PAR information back to the merchant PSP along with the token.

👉 𝐈𝐧-𝐒𝐭𝐨𝐫𝐞 𝐂𝐚𝐫𝐝𝐬 - The Payment Terminal captures the card data and shares it with the card issuer to authorize the transaction. Card issuers authorize transactions and share with merchants the response and PAR, while the processor provides the Processor Token.

Source: Deloitte

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