The impact of technological innovation on the Brazilian payment system: the new vectors as a catalyst instruments for competition

Abstract

The 2008 financial crisis highlighted that traditional banking system is out of hand, enabling the development of new financial services offered by companies whose scope is technological innovation. In Brazil, after the regulatory framework established by the Law 12,865/2013, the Brazilian Payment System (BPS) has been undergoing regulatory changes by the Central Bank of Brazil (CBB), seeking technological transformation in this department. The principle of interoperability, established as the system's guideline, has its base in innovation as a stimulus to competitiveness, provided by a regulatory framework focused on the orderly development of the market. This article investigates how and to what extent innovation impacts the BPS, including regulation, to foster competitiveness, acting as a catalyst for competition in the BPS. Methodologically, the research adopts a deductive approach with bibliographical research and examination of the CBB regulations. The research is justified in view of the topicality of the subject and the verification of the permanent process of innovation in the financial system, in order to give rise to an increasing reduction of information asymmetry. As conclusion, the run for innovation through increased interoperability provides competition, non-discrimination, and orderly development of the market, as demonstrated by the essence of the new vectors established in the regulatory sphere. However, the impact that such vectors will provide on the means of payment is still unknown given its embryonic stage, but the road is paved to demonstrate that innovation as a strategy to foster competitiveness is a path with no return.