The potential of mobile payments in Latin America has undoubtedly piqued the interest of entities small and large. And out of Brazil, financial solutions provider Grupo Nexxera has embarked on a new mobile venture, NexxPago.
Launched just two months ago, NexxPago is dedicated to the development of products and solutions in the mobile payment realm. The business’ shareholders and professionals have set out to build a disruptive model for payment processing, continuing with Nexxera’s philosophy of utilizing technology to promote businesses in the value chain.
With NexxPago’s products, buyers and sellers can utilize their mobile phones as an extension of their conventional payment methods – starting with credit cards. They will also possess what NexxPago claims to be a new transaction media, the company offing processing modules for the creation of private labels and loyalty programs, among other items. Linconl Rocha, Executive Vice President at NexxPago, explained:
We’ve created ways for issuers to improve performance, reducing costs (organization, customization and fraud) and offering products that enable new revenue-generating services that clients really want, without hindering technology.
NexxPago plans to roll out a smartphone transaction gateway, a B2B platform, mobile banking products and loyalty monetization services. Since its launch, in fact, the company has taken on 12 major projects, planning to deploy three this month. The expectation is to reach five million active users over the next 10 months.
Grupo Nexxera, NexxPago’s parent company, has certainly given this new endeavor a leg up. Edson Silva, President of Grupo Nexxera, provided some insights into the timing:
Grupo Nexxera has 20 years of experience in the financial system and, in particular, solutions for means of payment. This allowed Nexxera not just to focus on the issues that the conventional market is acting on. We are focused on paying bills for general consumption, with components that bring ease and comfort to users along with their commitments.
We caught up with Linconl Rocha to learn more about NexxPago itself as well as what’s going on in mobile payments in Brazil right now – especially with respect to recently-implemented legislation in the market.
Emily Stewart: There are a lot of companies out there trying to create mobile payment solutions right now. How do you compete, and what sets you apart?
Linconl Rocha: This only reinforces that our objectives and plans are consistent with the market. We understand that, in addition to our philosophy, our differentiator is not pushing the same technology as a solution for all cases. In fact, every moment, every situation will require an application and appropriate technology. NFC, RFID, SMS, USSD – all these forms of communication are suited for different needs. We use all of these. We even have solution for offline transactions. Each case deserves the attention necessary to avoid friction with users.
Another point to highlight is our local market knowledge, a strong know-how of the specificities of the Brazilian financial market, which is quite peculiar. Grupo Nexxera offers a range of banking products – items in cash, reconciliation and bill payment – that are far from what other market players do.
We don’t think of mobile as an end, but instead as a means that has no end.
ES: The Brazilian government recently published MP615, which deals largely with the mobile payment industry. What is your take on it?
LR: It was an important move for the country, pushing the industry forward. We now have clear guidelines as to who will regulate activities and under what rules. The population will have a more democratic channel for banking, and government will have greater traceability in terms of cash flow. In conclusion, everyone benefits.
ES: How does it or will it affect your business?
LR: Positively. We have a strong potential target of non-traditional emitters. Many of these entities and individuals were afraid to enter this market because of compliance issues. However, with clear rules and available consultation, the decision to enter has become easier.
ES: What are the main impediments to mobile payments becoming a widespread reality in Brazil?
LR: We see many opportunities. Businesses are already in the process of replacing traditional POS systems and including features to capture transactions via mobile in various ways, such as NFC. However, we realize that there is still room for new players that are more attuned and more flexible. The mental model of transactional relationships has changed, especially in Brazil. And that creates new opportunities for companies like NexxPago.