Boleto Bancário, commonly known as Boleto, is a leading payment method in Latin America, especially in Brazil. Established in 1993 as a system for facilitating cash payments, Boleto has since adapted to the rise in online transactions and is now a popular method for online payments.

Boleto is known for its user-friendly features and ability to adapt to different payment scenarios. Using a unique code, businesses can send invoices via email, text, or social media that customers can use to pay online within a set period, usually from 3 to 15 days. Customers have the option of paying in full immediately or in instalments.

Boleto is accepted as a payment method across Brazil. While other payment methods now account for a significant share of the Brazilian market, Boleto still serves an important role as a hybrid payment option that allows customers to settle transactions either through traditional bank slip channels or instantly via a Central Bank-mandated Pix QR code. Boleto is popular with businesses for its lack of chargeback risk and reduced fraud risks compared to credit card payments.

We'll cover Boleto's key features, primary users and what businesses need to know about accepting Boleto as a payment method.

What's in this article?

• How does Boleto work?
  
• Where is Boleto used?
  
• Who uses Boleto?
  
• Benefits of accepting Boleto
  
• Boleto costs and fees
  
• Boleto security measures
  
• Accepting Boleto as a payment method
  
• Alternatives to Boleto
  
• How Stripe Payments can help
  

How does Boleto work?

Boleto functions differently from many other electronic payment systems. Here’s how it works:

Boleto vouchers

When a customer chooses Boleto as their payment method when making a purchase online, the business generates a Boleto voucher for the transaction. This voucher contains essential details such as the payment amount, issuing bank code, expiry date, and tax identification number such as the CPF for individuals or CNPJ for businesses. Businesses can issue the voucher in both printed and virtual formats, along with a barcode and serial number for tracking the payment process. Customers can select Boleto as a payment method for direct purchases, and can also use the service to fund digital wallets or prepaid cards.

Pix integration

By mandate of the Central Bank of Brazil, all Boleto vouchers must include a Pix QR code. This provides customers the ability to pay the same voucher with either a traditional barcode or a QR code that supports payments with any Pix-supported banking app.

Payment terms

Customers can pay a Boleto, as it’s colloquially known, by using the barcode or serial number any time before the expiry date, which is typically set at 3 to 15 days from the date of purchase. After this date, payments cannot be processed without incurring a late fee.

Where to pay

Customers can pay their Boleto at various locations across Brazil including ATMs, bank branches, post offices, lottery agents, and some supermarkets. At in-person locations, the cashier will scan the voucher’s barcode at checkout. For online payments, customers can pay via internet banking apps, where they can either scan the barcode or enter the serial number manually.

Payment confirmation

After the payment is made, it typically takes about one to three working days for the issuing bank to confirm it, at which point the bank credits the payment to the merchant’s account. This delay in confirmation is a notable aspect of the Boleto system compared to instant electronic payment methods.

Accelerated confirmations

Boleto Flash is an enhanced variant of traditional Boleto designed to overcome standard one to three working day settlement delays. It accelerates payment confirmation down to less than an hour for standard barcode scans and provides immediate confirmation when paid via Pix. This same-day confirmation allows merchants to release digital access or ship physical products much faster while retaining the familiar structure of a Boleto voucher.

Security level

Boletos are considered secure because they do not require customers or businesses to share sensitive financial information like credit card details online. Boletos also minimise the risk of fraud as each voucher is specific to a single transaction.

Where is Boleto used?

Boleto is primarily used in Brazil. This bank-slip payment method has become deeply embedded in Brazilian culture and is regulated by the Central Bank of Brazil. Boleto is a versatile option for consumers and businesses, in part because it does not require consumers to have a bank account.

Boleto’s popularity in Brazil reflects the country’s specific consumer behaviours and business trends. As of 2025, around 15% of Brazilian adults did not have bank accounts. Many Brazilians are hesitant to share their payment information online. Alternative payment methods like Boleto allow these customers to bypass traditional banking structures and avoid sharing sensitive data while still engaging in e-commerce.

Customers can pay Boleto vouchers at over 40,000 processing locations across the country, including lottery houses and banks, and they can pay in cash, which makes this a crucial alternative for unbanked people. Customers can also use banking apps to pay Boleto vouchers. Boleto’s widespread use also reflects the limited penetration of credit cards in Brazil. About 60% of Brazilians own a credit card, which makes Boleto an essential payment method for online purchases for the other 40%.

Boleto’s services are designed to operate within Brazil’s banking structure and consumer preferences, which favour straightforward, transparent payment methods without the complexities and fees often associated with credit card transactions. The Central Bank of Brazil regulates Boleto for compliance with the country’s banking norms and consumer protection standards.

While Boleto was historically Brazil's primary noncard payment method, the market has shifted dramatically with the widespread adoption of Pix, the Central Bank of Brazil’s real-time payment system. Pix now accounts for approximately half of all financial transactions in Brazil and is used by nearly the entire adult population.

Consequently, Boleto’s role has changed: rather than serving as a default everyday retail payment option, it now functions as a specialised payment document that can be settled either via traditional bank slip or instantly via Pix. Today, Boleto remains an indispensable tool for cash-paying customers, unbanked or underbanked people, and B2B invoice workflows that require extended payment windows.

Who uses Boleto?

Boleto’s diverse user base cuts across consumer segments and includes a range of ages and income levels. While e-commerce shoppers and safety-conscious customers value its security and flexible payment windows, Boleto remains particularly indispensable for unbanked people making digital purchases.

A wide range of businesses also use Boleto because of its lower charge chargeback risk and the fact that its configurable payment windows – typically three to 15 days – align seamlessly with standard B2B and accounts payable workflows. This gives enterprise buyers the flexibility needed for deferred invoicing while providing merchants with a structured, traceable payment instrument.

Benefits of accepting Boleto

By accepting Boleto, businesses gain access to the millions of Brazilians who don’t have access to traditional banking services, but still want to engage in e-commerce. Here are some other benefits:

Reduced fraud risk

The reduced fraud risk associated with Boleto transactions is a notable business advantage. Unlike credit card transactions, which necessitate the transmission of sensitive data, Boleto’s format minimises the potential for fraudulent activities. When paid in cash, Boletos are considered to have almost no fraud risk.

Predictable revenue

Boleto payments are made up-front, creating a more predictable revenue stream in contrast to credit cards, where payment might be delayed or disputed. Boleto provides businesses with a more stable and reliable payment collection method and no chargeback fee.

Customer trust

Boleto is a familiar and trusted payment method for many Brazilians, and businesses that accept Boleto can capitalise on this trust to build stronger, more loyal customer relationships.

Incentivised sales

There's an established history of businesses offering discounts for Boleto payments, which has added to its popularity as a payment method over the years. Businesses that run these discounts can create a powerful customer incentive and increase sales volumes.

Easy digital integration

Boleto’s compatibility with current e-commerce platforms and payment gateways simplifies financial operations. This ease of integration means businesses can manage various payment methods more effectively without needing extensive adjustments to their existing systems.

Access to Brazilian market

For international businesses, accepting Boleto can be important for market penetration in Brazil. Integrating with localised payment methods like Boleto can be an important differentiator, helping these businesses resonate with local consumers.

Boleto costs and fees

Boleto’s associated fees and costs are typically determined by the financial institution or payment service provider handling the transaction and can vary based on the provider and specific terms of service. It’s common for businesses to pay a transaction fee on each Boleto payment, but for exact costs and fees, businesses should consult directly with the bank or payment service provider they would use to process Boleto transactions.

Boleto security measures

Boleto takes the following safety measures:

Encryption

Boleto transactions employ SSL (Secure Socket Layer) and TLS (Transport Layer Security) encryption. These protocols safeguard data transmission between the payer’s device and the financial institution’s server. SSL and TLS encryption methods use a combination of symmetric and asymmetric encryption to ensure only authorised parties can access the transaction data.

Voucher system

Boleto’s voucher system creates secure transactions because they require almost no personal information from the payer. Boletos that are paid in person in cash require no information other than the voucher barcode and purchase amount.

Unique barcodes

Each Boleto is generated with a unique barcode and numeric code, which are key for the transaction’s security. This code is algorithmically generated based on factors like the amount due, recipient’s bank code, and expiry date. These measures prevent duplication and misuse and ensure that each payment is attributed and tracked correctly.

Expiry dates

Boletos are issued with specific expiry dates, typically within 3 to 15 days. After this date, the Boleto becomes invalid, preventing the accumulation of outdated and potentially insecure debt instruments in the market. This feature also helps financial institutions manage receivables more effectively and reduces the risk of fraud related to outdated payment slips.

Bank validation

Upon payment, the issuing bank confirms the Boleto's authenticity by cross-referencing the details with the issuer's records. This step includes verifying the barcode, amount, recipient's account and due date. This validation is necessary to prevent fraudulent transactions and ensure funds are allocated correctly.

Regulatory and legal compliance

In Brazil, financial institutions must adhere to regulations set by the Central Bank (Banco Central do Brasil), National Monetary Council (CMN), and Brazilian Federation of Banks (FEBRABAN). These regulations include the General Data Protection Law (LGPD), which governs the use and protection of personal data, as well as transaction reporting, anti-money laundering, and cybersecurity guidelines. The Central Bank of Brazil also established relevant legislation in 2020 to expand the minimum Know Your Customer (KYC) data requirements and prevent money laundering.

Dispute resolution

In case of unauthorised transactions, customers can contact their banks, which are required to follow specific procedures to investigate and resolve such disputes. This process is governed by consumer protection laws and regulations set by the Central Bank, which ensure a standardised process for handling transaction disputes.

Boleto Registrado

Since 2017, following a regulation by FEBRABAN, Boletos must be registered by the issuer with the Central Bank of Brazil at the point of creation. This registration provides the Central Bank and Boleto issuers with more information about Boletos in circulation, enhancing security and reducing fraud.

Accepting Boleto as a payment method

Businesses that want to accept Boleto as a payment method should first make sure they understand the specific restrictions and operational features of Boleto payments. Boleto payments cannot be refunded, and they adhere to set minimum and maximum transaction limits. Payment confirmation typically occurs within one business day of the customer completing the payment, and funds become available for payout after an additional two business days. To accept Boleto, businesses need to integrate a compatible payment processor like Stripe. Below are the specific steps for setting up Boleto via Stripe as an example of what this setup entails.

Integrate Stripe into your platform

Businesses need to integrate Stripe’s payment system into their online platforms. They can do this through Stripe’s application programming interfaces (APIs), which allow businesses to design a payment experience suited to their needs. Alternatively, Stripe offers customisable user interface components like Stripe Elements or Stripe Checkout. Stripe Elements enables the creation of a unique checkout flow that matches the business’s website in look and feel, while Stripe Checkout provides a ready-to-use, Stripe-hosted payment page that simplifies the integration process.

Add Boleto as a payment method in your Stripe Dashboard

Once the business has integrated Stripe's payment system into their online platforms, they need to activate Boleto as a payment method. They can do this in the Stripe Dashboard, by configuring their payment settings to include Boleto along with other methods. During this process, businesses will specify the types of transactions for which customers can use Boleto and set up any relevant regional or transactional restrictions.

Set up customer payment instructions

Businesses should make sure customers have clear instructions and support for how to complete Boleto payments before accepting this payment method. Boleto's process of issuing a payment slip that must be paid before its expiry date should be clearly outlined along with information on authorised locations and online payment methods through which the purchase can be completed.

How to set up Boleto as a foreign business

Under Brazilian banking regulations, nonlocal businesses cannot directly issue or process Boleto payments without a registered presence in the country. To comply, foreign companies must either establish a local subsidiary or partner with an existing Brazilian entity. This local representative serves as the legal face of your operations, assuming liability for financial transactions, consumer protection, tax compliance, and fraud management to ensure foreign businesses adhere to national payment standards and maintain a level playing field.

Local entities must strictly adhere to Central Bank of Brazil regulations, as noncompliance risks heavy fines or operating licence revocation. This framework requires enforcing Anti-Money Laundering (AML) protocols, fulfilling local tax obligations, and executing Know Your Customer (KYC) workflows by collecting and verifying customer CPF (individual) or CNPJ (business) tax IDs at checkout. Additionally, foreign investments must be formally registered with the Central Bank to enable the repatriation of profits and capital while navigating potential operational or ownership restrictions on cross-border financial activity.

Alternatives to Boleto

There are many alternatives to Boleto, both in Latin America and globally. Here are some popular alternatives that businesses can use depending on their location and business needs:

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments or get started today.