The challenge
The Brazilian government is focused on improving access to water and sanitation for 212 million people, of which 14% lack access to a reliable and safe source of water and 51% to safely managed household sanitation facilities. A new national sanitation framework aims at supplying 99% of the population with drinking water and 90% of the population with sewage collection and treatment by the end of 2033.
Overhauling customer payments is fundamental to Embasa’s ability to meet these targets. Customers typically face long lines to make payments via ATMs, at bank branches, or at retail stores such as supermarkets and the utility needed to find better ways for customers to pay their bills. In addition, processing often takes several days, leading to accounts closing and creating reconciliation challenges for the Embasa’s treasury team.
Embasa’s treasury recognised the need to find a more inclusive payment process that would help customers while ensuring a more consistent flow of working capital and supporting critically important sustainable service objectives. The decision was made to adopt Pix, the Brazilian Central Bank’s instant payment system, allowing instant transfers 24/7 via cell phones and through the use of QR codes. The modernisation would drive tremendous payment efficiency, while dramatically improving the customer payment experience.
The solution
Embasa’s decision to implement Pix has made the water company an instant payments pioneer in the public sector, elevating the company to one of the first utilities to offer receivables QR codes for customers. By partnering with Citi, Embasa has made it possible for customers to conveniently pay the company 24/7 using their cell phones without a third-party app or portal to issue the payment. Even last minute payments are accepted immediately, eliminating service interruption – even on weekends.
In addition, this solution allows Embasa’s treasury to receive transaction files from all payers within 30 minutes, allowing for faster, more efficient reconciliation. Using Pix has allowed Embasa to better serve its consumer base. This initiative has been instrumental in supporting the utilities efforts to meet its goals of universal sanitation by 2033, providing sustainable services well into the future.
Best practice and innovation
In its quest to meet long-term sustainability and universalisation objectives by 2033, Embasa has taken bold steps to improve payment efficiency and customer loyalty. Embasa’s treasury team has embraced payment innovation, ensuring customers have the ability to pay instantly and safeguarding them from water services interruptions. Customers use a QR code scanned into their mobile phone to initiate payment. Even when customers are late with a payment, Pix allows them to pay quickly, and immediately restore services. These are significant advantages for both Embasa and the company’s customers.
In addition to helping the company meet its sustainability and universalisation goals, this highly scalable solution also delivered faster reconciliation. Treasury now receives transaction files from all payers within 30 minutes. The cost saving is also noteworthy. Using Pix, the original 20 cents per dollar per transaction cost is now 25 times lower. The savings will be instrumental in providing working capital to meet Embasa’s ambitious 2033 goals.
Key benefits
