Brazil’s new trade bill regulation could unlock BRL 15 trillion market
This week, iDEXO, the corporate venture capital arm of one of Brazil’s leading providers of management and ERP software for large companies, Totvs, announced an undisclosed investment in Payhop, a fintech that specializes in helping merchants use their credit card receivables as collateral for loans and payments to suppliers.
Why it matters. Behind the deal, which values Payhop at BRL 50 million (USD 10.1 million), is a race to navigate new regulations from the Central Bank and the National Monetary Council (CMN) that aim to create a new electronic and integrated system of trade bills in the country, with the potential to generate up to BRL 15 trillion (USD 3 trillion) annually and unlock cheaper credit for businesses.
State of play. Following the same script as the opening of the card receivables market, the Central Bank first laid the foundations for the standardization and interoperability of players in the trade bill sector in 2020, following a new law from 2018. In August last year, the monetary authority detailed some of these rules and set deadlines for stakeholders to adapt.
How it will work. The so-called registrars or bookkeepers, financial structures authorized by the Central Bank to register different types of assets, will be the ones responsible for issuing the electronic duplicates. Some of them are the same ones that operate in the card receivables environment, but other players are interested in entering this new market.
- In the first group are the two of the oldest registrars in Brazil — CERC and Nuclea — the credit rights registration center of the São Paulo commercial association (CRDC),...
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