Bre-B, from the Banco de la República, is forcing Transfiya to make a change in its instant person-to-person payment service; what's this about?

Transfiya, the pioneering instant mobile transfer system in the country, developed by ACH Colombia and operating since February 2020, is no longer operating as a platform for personal monetary transactions. It will cease to exist as such starting October 5th, with the firm launch of Bre-B, a real-time transfer and payment platform developed by the Bank of the Republic.

According to reports, some banks will make this adjustment to their websites starting that date. Transfiya will be replaced by Bre-B for these types of transactions, while Transfiya will continue to operate, focusing on businesses and retailers, according to Gustavo Vega Villamil, president of ACH Colombia.

With the introduction of Bre-B, from the Banco de la República, individuals will only be able to transfer funds between themselves through this platform, while we will continue to serve that other segment (businesses) to request money, receive money from businesses, or allow businesses to send money . It's not so easy to explain this to users, but Transfiya continues to exist as a low-value payment system overseen by the Financial Superintendency, the executive explained.

With more than 24 million registered users to date, 27 connected financial institutions, and a monthly average of 40 million transactions, Transfiya has become the best and most effective free payment and resource transfer alternative for millions of people and businesses in the country.

In December of last year alone, the platform recorded a record 43.4 million transactions, consolidating its exponential growth since its launch in 2020. In the first seven months of this year, it recorded a total of 282 million transactions, an increase of 214 percent compared to the same period last year.

The platform recently implemented new services to consolidate its operations in the national market: Transfiya Empresas and Transfiya Negocios. The former allows companies to make mass money transfers to multiple recipients, improving customer service, while the latter is aimed at small businesses receiving payments from their customers.

For the president of ACH Colombia, this is a process that will undoubtedly impact the dynamics of his platform, as is natural in markets when new competitors emerge. He explains that with the entry of Bre-B, which will no longer be solely mobile, but also email, ID, or an alphanumeric component, he faces competition from Transfiya.

He assures that other entities will be providing this same service in the future, so there will certainly be an impact on users while they finish understanding the concept of the key and its registration, something that wasn't required with their platform. These first days of migration to the full Bre-B regulations may have an impact on end users, which is what we are trying to avoid with these explanations, but like any new system, there is a process and a stabilization period.

However, he insisted that they are already working with many companies and focusing their strategy on that market segment, not only large ones but also small and medium-sized ones . "The roadmap is very focused on the corporate sector, where we have companies that make payments and collections through Transfiya, where we see great potential," said Vega Villamil.

And regarding the possibility of bringing this development, as well as the PSE Payment Button, to other regions in the region, the executive said it is a plan that remains on ACH Colombia's radar and will be resumed once the entire Bre-B takeoff process and the Transfiya adjustment are complete.

"Now the entire industry is focused on Bre-B's entry because it's an important milestone for the country. We've explored, let's say, the possibility of bringing the Payment Button to other countries, as this option doesn't exist in the region. We know that Ecuador, Peru, all of Central America, and the Caribbean have good potential for this option, but I think next year we'll dedicate a team to further explore these possibilities," Vega Villamil stated.