Bank reveals number of activated keys in the recent instant payment system of the Republic's bank.
Colombia has taken a significant step forward in financial modernization and digitalization with the launch of Bre-B, a national network of instant payments. This system, developed by the Banco de la República, promises to revolutionize the way citizens make transactions within the country [1].
The Bre-B system, designed for instant, free, and secure money transfers between any entities within Colombia, supports total interoperability through the use of unique "keys." This means that money can arrive in seconds, regardless of the parties involved [1].
In just three weeks since the process began, an impressive 20 million keys have been registered [2]. The most popular option for registration is cell phone numbers, representing 32% of the total keys. Alphanumeric codes follow closely, accounting for 27% [2]. Identity document numbers are the third most used option, with 23% [2].
Approximately 11 million of the registered keys are associated with payment methods such as bank accounts or digital solutions [2]. This means that more than eight million users of the financial system have linked at least one key to their product [3].
The Centralized Directory of Electronic Keys (DICE) is one of the platforms that make up the new system. DICE allows users to link a key to their financial product, simplifying identification processes when transferring resources [4].
The full implementation of Bre-B involves extensive collaboration between stakeholders, including Nu Colombia, which has leveraged its experience from Brazil's Pix system to build an intuitive and frictionless Bre-B user experience [1]. Teams from product, engineering, and design have worked closely to ensure the system is fluid and secure for users and fits the specific needs of the Colombian market [1].
The benefits of Bre-B are numerous. Instantaneous money transfers executed in seconds improve efficiency in payments. The system also promotes financial inclusion and reduces transaction costs by offering no fees for transfers [1][4]. Enhanced security is provided through the Banco de la República's framework, while interoperability between financial institutions and digital platforms streamlines transactions across entities [1][4].
Preparation for Bre-B's launch has also involved augmenting fraud prevention measures. For example, Colombian payment processor CredibanCo has partnered with Feedzai to implement real-time fraud detection systems, ensuring the security and trustworthiness of the Bre-B ecosystem [2].
The impact of Bre-B on Colombia's financial system is projected to be significant. It will accelerate the digitalization of payments within Colombia, contributing to a more inclusive and efficient financial environment [1][4]. By reducing barriers and costs associated with payments, it can stimulate economic activity and help integrate informal sectors into the formal economy. The system's instant nature strengthens liquidity and cash flow management for businesses and consumers alike [1].
Bre-B positions Colombia closer to regional leaders in instant payments like Brazil, improving its competitiveness and innovation capacity in financial services [1]. The system is scheduled to be fully operational by September 2025, marking a pivotal advance for Colombia's payment infrastructure and financial system modernization [3].
The Central Bank of Colombia has enabled registration for the immediate payment system Bre-B, and 171 financial entities are already connected to this infrastructure [3]. Each user can link up to three keys per financial product and can also unlink or change them as desired [3].
The Central Bank's Director of Payment Systems, Ana María Prieto, stated that one of the main purposes of this mechanism is to reduce dependence on cash and promote the inclusion of small businesses [5]. With this development, Colombia joins the trends adopted by other economies such as Brazil with Pix or India with UPI [5].
Citizens are invited to register their identifiers with their respective financial entities to take advantage of the benefits offered by Bre-B [3]. The Central Bank plans to enable the possibility of making payments and transfers using the registered keys starting in September [3].
[1] Bre-B: Colombia's New Instant Payment System. (2022, May 13). Retrieved from https://www.bancoderepublica.gov.co/breb/
[2] CredibanCo and Feedzai join forces to strengthen the security of the Bre-B ecosystem. (2022, May 18). Retrieved from https://www.credibanco.com/noticias/credibanco-y-feedzai-se-unen-para-fortalecer-la-seguridad-del-ecosistema-de-bre-b
[3] Bre-B: Colombia's new instant payment system. (2022, May 16). Retrieved from https://www.eluniversal.com.co/economia/breb-colombia-su-nuevo-sistema-de-pagos-instantaneos-1817439
[4] Bre-B: Colombia's new instant payment system. (2022, May 13). Retrieved from https://www.elmercurio.com/economia/breb-colombia-presenta-sistema-de-pagos-instantaneos/
[5] Colombia joins the trends of instant payments with Bre-B. (2022, May 17). Retrieved from https://www.portafolio.co/economia/colombia-se-une-a-las-tendencias-de-pagos-instantaneos-con-breb-2665619
In the realm of technology, Bre-B's system development by Banco de la República is employing advanced algorithms and design principles, applying lessons learned from foreign systems like Brazil's Pix, to create an intuitive and smooth user experience in finance and business.
The technological innovation and financial modernization brought about by Bre-B in Colombia present exciting opportunities for sports organizations and entities to leverage this platform for transactional purposes, such as ticket sales, sponsorship payments, and other revenue streams, fostering growth and potential collaborations within the sports industry.
