• Colombia launches BRE-B to enhance real-time digital payments.
• Bre-B is a free platform promoting financial inclusion across Colombia.
• Traditionally, cash transactions dominate, but BRE-B aims to change that.
• Interbank transfers are now free, removing costly barriers for users.
• The introduction of ‘llaves’ simplifies money transfers by enhancing security.

A New Era for Digital Payments in Colombia

Colombia Aims to Transform Payment System with BRE-B Launch In a significant shift towards embracing digital payments, Colombia is embarking on a strategic initiative focused on real-time transactions through its new centralized platform, BRE-B. Since the official launch in September, the Banco de la República Electrónica aims to replace the cash-dominant system in a nation where about 80% of transactions are still in physical currency. Supported by Colombia’s Central Bank, this free-to-use platform intends to create a more unified financial landscape, extending benefits across both urban and rural areas, thereby facilitating greater financial inclusion.

Connecting Users with Innovative Payment Solutions

The Innovative Features of BRE-B and Its Impacts The BRE-B is Colombia’s bold attempt to imitate Brazil’s success with Pix, but with its own unique features designed to adapt to local needs. As noted by Ana María Prieto from the Banco de la República, the platform builds on existing infrastructures rather than starting from the ground up. It enables users to send and receive funds instantly between different financial institutions and digital wallets without incurring transaction fees, thus paving the way for a more competitive market. Traditionally, transferring funds between accounts in Colombia could involve fees upwards of COP$7,980 pesos (nearly USD 2), presenting barriers especially for low-income users who are often the most affected by such costs.

Addressing Risks Amidst Growing Adoption

Enhancing Financial Access and Security for All Colombians Another significant aspect of BRE-B is the introduction of “llaves,” or digital identifiers, which simplify transactions while enhancing security. Colombians can select from various identifiers like phone numbers, national ID numbers, or even email addresses to facilitate money transfers—thus helping to boost digital trust in financial activities. Up to now, over 13 million people have already registered for these identifiers through initial pilot programs with private banks. However, as the speed of transactions sees a boost, the risk of cyber fraud looms larger. A TransUnion study indicated a troubling 11% rise in suspected online fraud in Colombia in 2024, highlighting the urgency for robust cybersecurity measures within the BRE-B framework.

Colombia’s new BRE-B platform signifies a pivotal step toward modernizing its payment systems and enhancing financial inclusion for all citizens, especially in underserved rural areas. By eliminating traditional costs associated with money transfers and introducing innovative digital identifiers, the initiative seeks to attract users who may have previously relied on cash. Yet, the country must remain vigilant about the rise of cyber fraud as it embraces this new era of instantaneous payments, ensuring that financial security is prioritized alongside innovation.