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Instant payouts: how do they work?
Instant payouts: how do they work?

Imagine being the world leader in smartphone access, reaching 96.3% of the population, and having 88% of people with digital accounts? These are some expressive numbers registered by Brazil in 2020. In a context of hyper convergence, the country represents one of the most favorable investment scenarios for merchants worldwide.

More and more Brazilians access, connect, consume and work online. And increasingly, they are paid in an entirely digital way.

Driven by entertainment, gaming and streaming, the country takes off in digital goods and in the market of digital influencers. Therefore, an increasing number of merchants find investment opportunities in Brazil and rely on payouts to send payments to service providers and customers.

Such transformation is not a trend: it is happening right now. The country already has 12 million beneficiaries in payouts, and 60% of them are cross-border payments. But while the traditional market is taking slow steps towards the solution of common payouts, BoaCompra by PagSeguro innovates by presenting a disruptive solution for instant payouts.

Faster, safer and more efficient, BoaCompra's Payout uses robust technology to guarantee simplicity to merchants. Would you like to know how this solution works? Then, continue reading!

What are instant payouts?

With BoaCompra, instant payouts can be made in local currency (Reais) and without additional fees, in real time. Companies from anywhere in the world can send money to Brazil using this fully digital method. It is worth mentioning that these payments must be made to suppliers, service providers or users as long as there is no employment relationship.

BoaCompra's disruptive solution for instant payouts guarantees a fast and secure experience for companies that want to send money to Brazilians without any bureaucracy and additional fees, which are common in the country's banks.

The purpose of creating this payment model is to improve accessibility to this market, seeking to escape the bureaucracy of international transfers to Brazilian territory and the high fees charged by institutions.

One of the main advantages of Instant Payouts is the speed of sending money to Brazil. Using BoaCompra's solution, global companies that intend to expand their business to the country can transfer the payment to the supplier's account instantly — in contrast to the traditional payout method in the market, which used to take two to three days to complete the transaction.  

How do instant payouts work?

Traditionally, Brazilian banks tend to be bureaucratic in relation to matters involving international transfers. Extreme regulation, exchange rate variation, extensive documentation and delay in releasing funds to citizens are some of the factors that make the process more time consuming.

With the future of payments and bank digitization, this transfer method is getting simpler. It is worth noting that, in Brazil, 88% of people are already connected to at least one digital bank, a surprising number to legitimize consumer confidence in digital transactions. Studies show that improvements in the user experience of these systems and — as we mentioned at the beginning — very high adherence in mobile devices give the user more confidence in having banking applications just a few clicks away.

Therefore, users of apps like TikTok, which exceeds 40 million in Brazil alone, already rely on the BoaCompra solution when they receive payments for, for example, viewing videos or sending invitations to friends.

But how do instant payouts work in practice, and why are they so disruptive?

Let's start with an example of how the traditional payout works:

  • Merchant: sends the money (in dollars) to a global payment processor;
  • Global payment processor: analyses, processes and transfers money (still in dollars) to a local banking system;
  • Local payment system: parses, converts and releases the payment;
  • Payee: receives the money (in reais).

Now, how about comparing with BoaCompra's solution? Here, instant payouts follow this journey:

  • Merchant: sends the money (in dollars);
  • PagSeguro: converts and releases the money (in reais);
  • Merchant: receives payment in real time.

The ease of the transaction — which can be in single or large quantities, with batches being able to contain up to 1,000 transactions at a time — is solved because of an efficient initial contract with the merchant. In this journey, the merchant can leave pre-deposited funds and request instant payouts at the desired time. So:

  • Onboarding: at this stage, the merchant signs the contract and integrates with BoaCompra;
  • Pre-deposit resources: the merchant makes a deposit in the BoaCompra account for the company to make the payouts in the future;
  • Request payouts: request payouts via the system API.

What are the benefits of BoaCompra's Payout for your company?

A faster, more secure and instant experience increases the reliability of your business as you expand payments to Brazil. With 17 years of credibility in the market, BoaCompra offers a range of benefits that go beyond technology. Check out the most important ones:

Accessibility to users

PagBank is already the second digital bank in Brazil, with more than 12 million users. In addition to the possibility that your payee is already a bank customer, the accessibility of the app allows an account to be opened in less than 5 minutes. The PagSeguro brand is also one of the most reliable in the market.

Instant local currency transfers

As it is clearly in its name, payments are made instantly and in Brazilian local currency. This means that the money sent will be in the beneficiary's account at the time the transfer was made and in the currency used.

Most importantly, the process is available 24 hours and 7 days a week, including weekends and holidays.

Greater fidelity

Whatever the type of beneficiary: streamers, marketplace sellers, influencers or any other partners. Due to the simple fact that payment is made on the spot, the chances of adhering to the solution will be great and, with that, the loyalty to use the digital platform.

High level of security

All BoaCompra and PagBank operations are duly regulated in accordance with the Central Bank of Brazil and are also certified in compliance with the PCI DSS (Payment Card Industry Data Security Standard).

These ensure the implementation of strict data protection measures with constant network analysis and frequent tests, in order to detect security flaws, fraud or cyber attacks.

In this way, transfers on the platform are safe and reliable.

Individual or bulk payments in Brazil

The company can send as many payments as necessary in a simple way and without any additional bureaucracy to service providers and other professionals located in Brazil.

All BoaCompra's Payout offers for your business

Operating in the Latin American market for over 15 years, BoaCompra by PagSeguro is an international payment platform that allows merchants and global companies to send money to Brazil quickly and securely.

With BoaCompra's solution and advantages, the disruptive Instant Payouts model presents its unique features, such as:

  • instant money remittances and in local currency (in reais);
  • no surcharges;
  • transparent fees;
  • modern and robust technology;
  • modern solutions for social media.

We've already talked about the steps required for the merchant to send payments, but did you know that the process is just as simple for payees to receive? In the example of TikTok, the user, upon completing the mission that generates payments, follows the steps:

  • In the app, the user selects the option “withdraw”;
  • Soon after, they click on PagBank as a withdrawal method;
  • If they don't have an account, they inform an e-mail address and connect to PagBank;
  • Then, just click on “confirm to withdraw”.

All done! After this short process, the money has already been sent to the user's PagBank account.

After reading this article, you will be able to choose the best instant payouts solution on the market for Brazil and explore the maximum potential for profitability that exists in the territory, in addition to knowing the main benefits of obtaining the solution.

Did you like this post? Then, contact our team and learn more about our solutions.

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