PIX - A guide through Brazil’s instant payment system

What is Pix?

Pix, Brazil’s innovative instant payment system, was introduced by the Central Bank of Brazil in November 2020 and aimed to address issues for people and businesses alike. More traditional payment methods weren’t accessible to all, with speed, cost, and availability limitations.

Pix allows for real-time peer-to-peer money transfers, bills, Boleto Bancário payments, taxes, and service fees (such as passport issuing). Brazilians can pay and send funds 24/7 (including holidays) via mobile banking, online banking, ATMs, and between individuals and organizations.

How can Pix be used?

Pix payments can be initiated in a variety of ways, one of the reasons it has become the number one choice:

• QR Codes: Through mobile or home banking, select Pix Payment and scan the provided QR code. Payment data is displayed for the user to agree and confirm the payment.
• Address keys: Select the address key that identifies the receiver, such as mobile phone number, e-mail, or CPF/CNPJ. The user can tap to confirm once the receiver’s data appears on the smartphone’s screen.
• Proximity payments: Connect to Pix via technologies that allow the exchange of information by proximity, such as NFC technology.
• Manually: Filling in information is one of the less popular models available in the new system.

Brazilian consumers were used to waiting for a payment confirmation for up to 24 hours. Pix has accelerated online transactions to such an extent that in 2022, three of four Brazilians used Pix to complete their eCommerce purchases. This local instant payment method has changed the eCommerce landscape for individuals and businesses.

Pix transaction fees for organizations are around 22%, compared to credit card fees averaging 2.2%. The difference is a no-brainer for any business-savvy retailers and online stores alike.

Join our experts in this 45-min Pix webinar: Introducing Brazil's instant payment system

The eCommerce opportunity for cross-border merchants

Merchants operating with a cross-border model in Brazil have gained a unique opportunity to boost local reach by surfing this wave. As of April 2023, over 138 million people and 112 million businesses have registered for Pix payments. With better and faster ways of paying online, Brazilian consumers now enjoy the ease of online payments and are purchasing new goods and services digitally. The main difference to some digital wallets, which already offer real-time transactions in Brazil, is the reach of Pix.

We are now over two years on, and this alternative payment method has surpassed all expectations, becoming an example of how to implement a successful real-time payment system in an emerging market. In 2022, Brazil accounted for 15% of all instant payments worldwide – thanks to Pix.

Instant payment method Pix is here to stay

Pix is affecting instant payments globally. Brazil’s government and financial institutions ensure its success, making it a model for financial inclusion and efficiency.

Brazil’s star instant payment method offers instant, 24/7 transactions through QR payment, mobile apps, and online. It’s free to use on the consumer side and compatible with various banks and providers, making it a convenient payment method throughout Brazil.

If you want to make a splash in Brazil, ensure you have their most popular instant payment method readily available. Start working with a trusted payments partner in Brazil for local expertise and global growth.