On the heels of its break-out success with Pix instant payments, Matera is expanding its instant payment and QR code payment solutions to the US.
Matera, provider of instant payment and QR code technology for financial institutions, is moving into the US market with its new San Francisco headquarters.
The expansion comes amid the continued uptake of Pix, the instant payment system implemented by the Central Bank of Brazil in 2020. Currently, the system is used by around 70 per cent of Brazilians. Matera provides instant payment software for banks leveraging Pix in addition to core banking technology.
Matera currently processes nearly three billion Pix instant payments a year. A fifth of this figure is thought to be by QR codes.
The fintech provides core banking services to more than 250 global banks, credit unions and digital banks; including one-third of all banks in Brazil.
Across these financial institutions, Matera serves over 55 million accounts. It’s seeking to extend the payments capabilities of more financial institutions with its intention to move into the US market.
Market drivers
Matera’s payments technology is being adapted for the US market in support of real-time payments (RTP) and the new FedNow instant payments rail; scheduled for a mid-2023 launch.
This is in addition to its new QR code payment software; designed especially for the US market. This software is compatible with instant and closed-loop payments.
“Matera has developed payments technology that is two-to-three years ahead of anything the US market has seen to date, and we’ve proven its value through our deployment in Brazil,” says Patrick Devlin, president of Matera US.
“There is tremendous opportunity here in the US. More than 10,000 financial institutions require better digital payment options,” continues Devlin.
Instant payments, instant success
Matera offers scalable and integratable instant payments with connectivity to core banking and digital channels.
Of the various benefits of Matera’s solution, financial institutions can engage with a sharper competitive edge, new revenue streams and strengthened relationships with merchants and businesses.
“I’m thrilled to be adapting our instant payments solution to the US for FedNow and RTP so banks and credit unions can capitalise on this new payment capability,” notes Carlos Netto, co-founder and CEO of Matera.
“We’ve seen firsthand how transformative instant payments can be. Those unprepared to offer instant payments when Pix launched lost out on commercial opportunities. Yet, FIs that were early innovators enjoyed new sources of revenue as a result. We believe the same will be true in the US.”
Introducing QR codes
Matera’s instant payment solutions are to be joined by its QR code payment solution when it reaches the US. QR codes, for those that aren’t familiar, enable shoppers to complete a transaction by scanning the code’s 1:1 interface.
This process handles the legwork at the back end, as the user has already been authenticated by their own bank.
It’s one thing for a bank to process a single QR code payment, but quite another to process thousands simultaneously. If it takes merchants more than a couple of seconds to generate a QR code, as it could for banks trying to generate thousands of codes at once, sales might be impacted by up to 10 per cent.
In relation to QR code technology, and payments in general, speed and scale matter. Matera’s platform, coupled with its ‘digital twin‘ software, was designed to handle high volumes at speed with real-time processing.
Its technology has reportedly been extensively tested through deployment in Brazil. It’s capable of performing large batches of codes for a single customer. For example, a utility company might need to bill several consumers at once and want to use a QR code.
“QR codes take instant payments to another level,” adds Devlin. “Matera has built and thoroughly vetted this technology in other markets. QR code payments are a game changer for businesses looking to reduce their payment processing costs. They also provide a streamlined, mobile payment experience to consumers.”
