Lina Open X Gets Central Bank Approval as Payment Initiator in Brazil

Published 7 months ago

Lina Open X, an infrastructure solutions company, has recently been authorised by the Central Bank of Brazil to operate as a payment institution, specifically as a payment transaction initiator. This marks the commencement of the services by the infratech, planned to roll out in the coming months.

Streamlining Payment Processes

Lina Open X aims to enhance business operations within the ecosystem through the new role. The company plans to facilitate charging in digital wallets, utilize data for anti-fraud measures, and identify consumer patterns for product personalisation. This new setup will simplify payment initiation, eliminating the need for “copy and paste Pix”.

The transaction flow is set to be improved with features such as a redirection-free path and the potential for recurring payments. These enhancements motivated Lina to apply for its own licence from the regulator.

Lina’s Growth Journey

Lina has been operational since October 2020, but it truly came into prominence in 2021. With just four clients at its inception, the infratech now boasts more than 40 companies in its portfolio. The goal is to more than double this number by next year.

The company’s portfolio is evenly split between financial sector businesses and the insurance market. The current portfolio includes Banco BRP, SulAmérica, HDI, Afinz and iugu, among others.

Financial Backing and Future Plans

In August 2022, Lina received a R$7.5 million contribution from RTM, a financial markets integrator hub. The company is currently finalising the second round of investment which aims to drive its growth curve.

Lina distinguishes itself from other Open Finance solutions providers by addressing the entire Open ecosystem. This includes not just the Central Bank environment, but also Open Insurance, the future Open Capital Market, and other sectors such as ‘Open Energy’ and ‘Open Health’.

Advancing Open Insurance

Open Insurance is one of Lina’s major focuses for the upcoming year. This decision is due to the system’s implementation schedule progressing rapidly. Among other new features, the launch of the Sales Order Processing Company (SPOC) is planned for phase 3.

The CEO of Lina envisions a future where a consumer can buy a mobile phone, pay for it through Open Finance and simultaneously secure insurance through Open Insurance. The timeline for this vision to materialize, however, remains uncertain.