> money transfers are going to be less complex, clunky and costly.
You really think the Brazilian central bank is going to make a smooth, efficient, and cheap money transfer service? What reason do you have to expect that to work?
You really think the Brazilian central bank is going to make a smooth, efficient, and cheap money transfer service? What reason do you have to expect that to work?
They will not do a transfer service, they will provide a specification that must be follow in order to provide instant payments and transfers.
To be honest, our central bank is pretty good in create such specifications.
So I have total confidence that they are capable of creating a better yet version of it.
This Pix thing seems to cover more than inter-bank transfers, people are expected to use it for QR code-based mobile payments for instance.
"Throughout the 1990s, when the annual cost of drugs for AIDS treatment often exceeded US$10,000 per patient, the World Bank and other development agencies discouraged developing countries from implementing treatment programs, favoring “cost-effective” prevention over costly treatment. Brazil challenged this conventional wisdom and, despite World Bank objections, has provided free universal access to highly active antiretroviral therapy (HAART) for all people living with HIV/AIDS since 1996." source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2782963/
Not mention its ubiquity that allows everyone from teens to grandparents to pay .25 for a cookie, to dropping a down payment, to paying bills, to filing taxes, to automating a weekly rent check. Basically an elegant single system required for modern life.
The fact zelle, launched in 2017, has a brand name, and competes for mindshare illustrates how they missed the target. In other countries it’s called banking.
Is this something to do with the differences between regional states in India?
Pix is an improvement over those systems (shorter processing times - as in seconds instead of minutes) and checks are almost nonexistent.
Compare with https://answers.usbank.com/answers/s/article/How-much-does-a... (spoiler alert: 10x more - for both senders and receivers)
Whatsapp transfers would be ~ 5% of the cost which would make it more expensive for anything over 200BRL
Meanwhile inside the SEPA Area (EU), National and International payments have the same cost (which is usually 0)
Do business accept Venmo (I know some do, though it seems Venmo is backed by a pre-paid card)? Can you pay your rent with it, for example? Tuition? Buy a car with it?
The payment methods I mentioned don't require people to install an app or enter an agreement, you have a bank account they're available to you. Sure, there's some typing of numbers (but that's pretty much a copy-paste today). Not to mention the privacy issues with Venmo.
These payment apps tend to work like another bank account in practice.
People use P2P apps when they want to casually send money to people they know. For merchants they get the square app and process credit cards directly. Venmo & friends tend not to be good for actual business for large transactions due to how bad chargebacks can be on it, so for large transactions you can use ACH which tends to be $0.25 for pretty much any money value, or free in many cases.
It's an electronic version of the times when we used to mail transfer cards to do transfers, but this day and age needs a lot more privacy protection. Same with other old tech like the phonebook. Who gets themselves listed anymore? It leaves you open to way much spam and scammy crap calls.
Brazil is pretty far ahead of the USA when it comes to money transfers, though I grant that this is a pretty low bar.