He Central Bank of Uruguay (BCU) is advancing a plan to “modernize” the payment system, with the aim that person-to-person or person-to-business transfers can be credited immediately once completed.
This is the system of open finance and rapid payments that was presented within the framework of the “XII Conference on Bancocentralist Law.” Both systems are used in various corners of the world and tested in countries in the region such as Brazil and Chili. The topic is being studied by BCU and could begin to operate fully next year, if the necessary adjustments and consensus are achieved.
The system basically implies that both transfers from person to person and from person to a business can be credited immediately once made. “We understand that this is where the rest of the world is evolving and Uruguay “You have to make a big bet on that type of system,” he explained. Nicolas Serrano, representative of the innovation office of the BCU, who spoke at the event accompanied by the organization’s officials, Eduardo Lereté, who referred to the operational aspects; and Maria Paz Wilson, who was in charge of the legal aspects.
The objective is for this payment system to be used massively as another means alongside cash, cards and checks.
Since December 2022, when the Bank’s Board of Directors made the decision to implement the rapid payment system in the country, a working group was formed that includes the business sector, but also advice from international experiences on the matter that include to the India, Chile, England and Brazil among others.
Benefits for users and challenges for the BCU
Regarding the benefits for users of the system, the real-time settlement of funds and the operation of the service 24 hours a day, seven days a week are mentioned, in addition to the fact that the beneficiary receives his payment before the “settlement” process ” finish.
Regarding the challenges of central bank For the implementation of this novelty, the organization’s spokespersons point out the need to adapt the country’s regulations, also aligning it with the bank’s strategic vision, which includes, among other points, the promotion of financial education.
Regarding the possible limits of the amounts on which the central bank works, the 20 thousand pesos in local currency and 400 dollars in the case of foreign currency are mentioned.
Only with the cell phone
Among the steps that some financial institutions have already been able to implement, is the possibility that transfers can be made person to person and at the moment, from a code linked to a mobile phone
It is also planned that starting next summer season the platform will also be operational. Pix, which will, in the first instance, allow Brazilian tourists to use this payment system in their local businesses.
VAT discount
The technicians of the central bank present at the event also confirmed that according to current regulations, since it is an electronic operation, this type of payment contemplates a reduction of two points of VAT, as well as payments by credit or debit card.
Source: Ambito
