Belvo Launches New Automatic Debit Products for Recurring Charges in Colombia

Published about 2 months ago

Belvo, the leading Latin American open finance data and payments platform, has introduced two new products in Colombia. These tools will enable businesses to make recurring charges through automatic debit to any bank account or wallet, as well as to make payments to any designated account.

Details on the New Products

The new products will allow businesses to provide payment experiences where users can link their bank account and approve automatic recurring orders for sending and receiving money, all within seconds and without leaving their application. These capabilities are particularly in demand in the Colombian market for uses such as subscription service payments, receipt payments, and loan collections.

An Improved Payment Solution

Currently, the solution for such payments in Colombia is to use the credit card network. However, this method is costly and has low success and penetration rates. In contrast, integrating bank payments can save businesses over 50% in transaction costs. For this reason, the adoption of these payment methods is rapidly increasing in the country. Bank payments for online purchases will grow by 38% (CAGR) by 2026, compared to just 18% for credit cards. Annually, this type of payment already exceeds 700 million transactions in the country.

Account-to-account (A2A) bank payments are emerging as a clear alternative to cards for recurring operations. “We are excited to promote their use in Colombia with our technology, which will enable millions of people to make their daily payments more comfortably and provide businesses with more efficient tools to streamline their collection operations,” said David Ballesteros, General Manager of Belvo in Colombia.

In addition to these benefits, due to its open finance data infrastructure, Belvo will be able to verify the balance of accounts before approving a transaction, as well as the transaction history, to maximize conversion rates in bank payments.

“Our open finance technology can help reduce fraud, increase conversion, and decrease the costs of this payment method, making the movement of money between bank accounts simpler and safer, which is essential to promoting broad access to financial services in Colombia,” added Ballesteros.