Colombia has introduced Bre-B, its new national instant payment infrastructure, resembling Brazil’s Pix, launched in 2020. Operated by Banco de la República, the system is undergoing testing for interoperability among banks, wallets, and fintechs before its widespread rollout on October 6.
The Colombian central bank aims to establish a real-time transfer system available 24/7, facilitating seamless and cost-effective transactions between individuals and businesses through existing customer applications.
Bre-B would function as the Brazilian equivalent of Pix, offering an integrated pathway to the channels of participating institutions without the need for a separate application.
The user will see a “button” or “B-B zone” in current apps and can quickly send and receive. The launch is significant, with 35.7 million keys registered by 14.5 million users, along with 21.2 million connected payments.
A total of 227 financial institutions form the ecosystem, minimizing typical disruptions found in fragmented tool launches for users.
Migration from physical to digital in Bre-B.
The Colombian central bank will waive fees from the financial sector for a minimum of three years to encourage the use of the service. This move aims to reduce the high costs associated with traditional bank transfers, making small payments more attractive and promoting the transition from physical to digital currency.
The concept is that the digital tool enhances the availability of financial services and triggers a ripple effect for both merchants and customers.
The initial focus after establishing the instant payment network is on addressing fraud. The system enables immediate settlement, limits reversals, and emphasizes the importance of user education and prevention measures from the start.
Bre-B’s arrival
The market for the Bre-B ‘parachutes’ platform, which already had private P2P financial solutions, is expected to gradually replace consumer transfers, similar to Pix in Brazil. If Bre-B provides security and stability, it could become a national standard for digital payments.
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