MAGALU payment system promises to be better than PIX

Magazine Luiza's fintech, the company's parallel financial services company, made an announcement about the newest system that facilitates shopping for e-commerce. The Payment Transaction Initiator (ITP) is inaugurated with the Open Finance function and is considered, in a certain way, simpler and more practical than the PIX.

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The company's first client is KaBuM!, a technology and games e-commerce.

According to a statement made by the company, the instrument gives the option for the user to initiate a payment order without that it is necessary to access the bank's website or application, or copy or paste a barcode, for example. Magalu's manager, Patrícia Iked, who is also responsible for the company's Open Finance area, said that the use of this tool – ITP – is a very interesting opportunity for companies to improve the customer experience and also to reduce dropouts at the final moment of the purchase.

Get to know Magalu's new payment method

Only with the coming of Open Finance, which inaugurates the standard sharing of data and products, financial information and services by institutions that are authorized to use the tool by the Central Bank (BC), is that it became possible to create this new modality of initiation of payment. Fintech received a license from the entity to use the modality that is already available at the KaBuM! checkout.

When the customer makes a purchase, he can use the balance of the bank where he has an account to pay in cash. The ITP removes this need, for example, for her to have to copy and paste the PIX code or even the barcode of a product to the financial institution's website or application.

This new system also makes life easier for companies when it comes to coordinating inventories, as payment is accounted for in a much more agile way, according to information from Magalu. Transactions typically take a maximum of five minutes to clear. On the other hand, a boleto can end up taking up to three business days. The implementation of ITP technology also reduces the company's operating costs, as it ends up requiring far fewer intermediaries in the processes to make payments.

What is ITP?

This is the new modality that was created by the Central Bank through a BCB resolution number 24 of 2020, which ends up regulating the provision of service for intermediation of payments. This is the new Payment Transaction initiator, which is being shortened to ITP. He has how goal technologically connect applications and websites to financial institutions, thus ensuring that payments occur securely. Companies operating as ITP are regulated by BC.

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