Payment Transaction Initiation (PTI) and the Financial Market Revolution

New technologies emerge to help us on a daily basis and Payment Transaction Initiation (PTI) is one of them involved in the financial area.

It wasn’t long ago that we started to have a need for fully virtual services, something that relates to Payment Transaction Initiation.

Online shopping is increasingly present in our daily lives, we move quickly from paper money to Pix and use our cell phones to pay for bills. So, it’s only a matter of time before Payment Transaction Initiation becomes popular.

We’ve never had it so easy to buy and sell. Everything is fast and this is due to the great increase in technologies such as the PTI, a movement that has revolutionized our lives and consequently the financial market.

Payment Transaction Initiation is yet another novelty to improve consumers’ shopping experience and it is important to keep an eye on these news that appear daily.

In today’s article, find out what Payment Transaction Initiation is and how it has revolutionized the financial market. Read the topics carefully and enjoy the content.

What is Payment Transaction Initiation?

Payment Transaction Initiation, or Payment Initiation Service Provider (PISP), is a major advance in banking technologies.

To put it simply, PTI is a process reducer because everything with it happens more simply, with fewer processes.

Its mission is to initiate payments or transfers without having to access payment institutions, which is only possible with the Open Banking or Open Finance structure.

Payment initiators are companies regulated by the Central Bank in the Open Finance or Open Banking sector.

This new technology allows the user to make the payment on the website or app of the company they are buying from. At the same location on the store’s website or application, the consumer initiates the payment and completes the order securely.

For online stores, Payment Transition Initiation (PTI) makes it possible for companies in any industry to offer financial services in-house.

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Purchasing benefits with Payment Transaction Initiation (PTI)

Purchasing processes were slow before Payment Transaction Initiation existed. Customers end up giving up buying because they have to go through many steps to confirm payment.

With PTI, this process has become faster, increasing the conversion rate of the shopping cart.

PTI makes life easier for businesses and consumers alike, as stores and apps can cut out many checkout steps. The recipe is simple: the smaller the processes, the faster it is possible to buy.

Pix was chosen as the first form of payment integrated into the PTI system, but the expectation is that there will be new ways of making payments.

Find out more about the benefits of PTI below.

Multiple payment methods in a single option

PTI centralizes payment methods and bank accounts in one place for the customer.

In this way, the person can have a much simpler and more transparent view of the amounts that come in and out on a daily basis.

Cost savings

The cost savings are due to the fact that PTI payments are made instantly into the customer’s account, reducing the intermediaries that were required before.

Decrease in fraud

Authentication of user data and PTI payments occur instantly at the payer’s digital bank, a process that makes fraud attempts more difficult.

Quality experience

With the reduction of PTI processes, practicality and security increase, making the entire operation more fluid for customers. Thus, the user experience becomes quality.

The relationship between PTI and Pix

Payment Transaction Initiation and Pix are Central Bank technologies that aim to provide more alternatives for those who use them and help save time and payment processes.

Pix joined the PTI precisely because of its practicality and speed, something that unites these two technologies and contributes to the democratization of financial transactions.

Let’s now understand how Pix’s process flow optimization was before and after the PTI. There are seven steps:

1 – Choose the Pix payment method when making an e-commerce purchase.

2 – Make a copy of the Pix QR code.

3 – Open the bank app.

4 – Search for the Pix option.

5 – Choose Pix modality.

6 – Scan the code or its information.

7 – Confirm payment.

With PTI technology, this has changed with more streamlined processes in four steps:

1 – The consumer chooses the Pix option in e-commerce.

2 – The data confirmation request appears before the purchase is completed, as well as the PTI authorization.

3 – When authorizing the PTI, the consumer is taken to confirm the payment in the bank’s app.

4 – The user confirms in the bank application, effecting the transaction with his password, facial reading or biometrics.

Who can offer the PTI service?

The Payment Transaction Initiation (PTI) service can be offered by any banking company, as long as it is part of Open Banking and authorized by the Central Bank.

After the Central Bank acceptance process, digital businesses that wish to have this service need to contract an API, which are application programming interfaces of an PTI.

What did you think of the content? Leave us your opinion in the comments below and share this article with your friends who need to know more about Payment Transaction Initiation and the revolution in the financial market.Visit our blog and check out more articles that we at WLA SaaS have produced on Payment Transaction Initiation, technology and other related topics.

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