Bank transfer: Payments made from one bank account to another. In Brazil, TED and DOC are two types of bank transfer. Instant transfers such as Pix in Brazil and Botón PSE in Colombia are also types of bank transfer.

Boleto bancário: a common payment method in Brazil, used in both e-commerce and for other payments. Boleto for short is an invoice generated by an issuing bank that can be paid online via a payer’s online banking portal or in cash at thousands of associated supermarkets, lottery houses, or bank branches. It is important to remember that, while other Latin American countries have local cash-based invoices, the boleto is exclusive to Brazil.

Buy Now Pay Later (BNPL): This consists of a payment button that allows customers to buy and pay for the purchases in installments using a debit card, bank account, or other payment method other than a credit card. These differ from traditional credit card installments, which are offered by the issuing bank and are only available to credit card holders. This is a slowly emerging payment method in Latin America and includes providers such as Addi, Kueski Pay, Zip, and VirtusPay.

Card acquirer: the solution or business that intermediates payments with credit and debit cards, connecting the merchant to the issuing bank. It handles payment registration and processing, communication with the card brand, transferring the payment to the merchant, and more. PagSeguro is a card acquirer in Brazil.

Card scheme: a central payment network that processes credit and debit card payments, from operations to clearing. Mastercard and Visa are two major examples of card schemes, offering credit and debit cards that users are able to use online and offline to pay for purchases and services.

Cash-based payment platforms, or Cash Vouchers: payments in cash such as invoice, barcode that can be paid online, or cash at thousands of associated supermarkets, retail locations, etc. In Peru, the term cash-based payment platform is used to refer to PagoEfectivo, a platform that uniquely combines cash, bank transfers, and wallet payments but is not a wallet. In Brazil, there is Boleto as mentioned above. Other solutions in the region include Oxxo and PagoFácil (Mexico), Sencillito (Chile), Via Baloto (Colombia), and PagoEfectivo (Peru).

Debit card: a debit card from an international or local card network, prepaid cards issued by digital wallets and fintech companies that draw off of a digital account.

Digital wallet: a payment method that stores any funding source on file, including a credit card, debit card, bank account, or stored balance, and uses that funding source to remit payment. The main wallets used for e-commerce in Latin America include PagBank, Mercado Pago, and PayPal.

Domestic-only credit card: a credit card that may only be used for domestic purchases, as determined by the issuing bank. These include cards from local card networks, such as Elo and Hipercard in Brazil, Naranja X in Argentina, and Carnet in Mexico as well as Visa and Mastercard cards that are restricted to domestic use only.

E-wallet: electronic device, online service, or software program that allows one party to make electronic transactions with another party.

Issuing bank: financial institutions that offer credit and debit cards for card networks (Visa, Mastercard, etc.). For example, if you have a Nubank account and a Mastercard card for it, Nubank is the issuing bank and Mastercard is the card scheme.

Internationally-enabled credit card: a credit card from an international network, such as Visa, Mastercard, and American Express, that is enabled by the issuing bank to make cross-border purchases.

Local payment: payments in local payment methods and local currency, processed locally (in the country where the user made the purchase). This is what we offer through our Payment Processing solution. Read more about it.

Open Banking: the use of open APIs that enable third-party developers to build applications and services around the financial institution

Payment facilitator: a payment facilitator, or payfac, is a platform that intermediates payments between consumers, payment operators (card acquirers, banks, PSPs, etc.), and merchants. It offers a system capable of processing payments, providing multiple means for completing a transaction, such as credit cards, debit, e-wallets, instant transfers, bank transfers, and cash in one place.

Payment gateway: connects the online store to credit and debit card operators, handling data transfers, transaction details, and the flow of information between merchant, processor, and consumer. It encrypts data, requests payment processes, and carries through the card purchase. The payment gateway collects and sends card data to the payment processor/PSP.

Payouts: A disbursement, or a payout as it is commonly known, is defined as a payment made by a company to a non-employee for a service provided, including payment to ride-hailing app drivers, delivery app agents, home rental hosts, freelance service providers, influencers, streamers, and gamers, among others. This is what we offer through our Payout solution. Read more about it.

Pix: instant payment platform created and managed by the Central Bank of Brazil. Read more about it.

PSP: Payment Service Provider or Payment Processor: a complete payment solution that simplifies and reduces the bureaucracy of using an efficient payment system by connecting with the infrastructure that involves payments, solving the technical problems involved with the flow of information and payments between those involved in the purchase. PagSeguro is a PSP, or Payment Processor, for all countries it operates in.

PSP: Payment Service Provider or Payment Processor: a complete payment solution that simplifies and reduces the bureaucracy of using an efficient payment system by connecting with the infrastructure that involves payments, solving the technical problems involved with the flow of information and payments between those involved in the purchase. PagSeguro is a PSP, or Payment Processor, for all countries it operates in.