Brazil’s PIX is still taking its first steps, but its future looks bright
January 13, 2021
PIX, Brazil’s instant payments platform, was launched November 2019, and it soon became one of the most relevant topics of conversation when it comes to the payments market not only in the country but around the world. A creation of Brazil’s Central Bank, PIX is proving itself revolutionary by enabling a payment with only a smartphone. The service is available 24/7 and allows not only free transfers between people and businesses, but also e-commerce payments. The new financial system is taking an average of two to three seconds to complete transactions.
After its first month live, the system has moved R$29 billion and over 95 million keys were registered to send and receive payments. Adoption has surpassed expectations and PIX is set to become one of the main payment methods in the market.
Convenience is key
The PIX customer experience means shoppers can pay for groceries at the supermarket while wallets are safe at home, for example. Unlike digital wallets that are linked to consumer’s credit cards or to their account at a mobile wallet provider, PIX is directly connected to bank accounts, making the process simpler and more straightforward.
This explains why 60% of Brazilians prefer PIX over traditional transfer methods like TED and DOC. There’s more: 45% plan to shop for products and services using the instant payment system and over half of the population believe they are going to prioritize the use of PIX over cards in the future.
It’s clear that PIX is modernizing the payment scene in Brazil, and that merchants need to consider the payment method as an important part of their strategy from now on. Not only are customers asking for it, but the payment method can be an important tool to achieve more convenience and seamless checkouts, which have been merchants’ goals for a long time.
A gamechanger for merchants and the underserved
PIX allows funds to be instantly available, improving cash flow. Additionally, the payment method is less expensive to process than debit or credit card transactions
PIX is unlocking access to an underserved part of the Brazilian population as well. The market has a huge underbanked, yet fully, connected population which is expected to embrace PIX and drive more money into the e-commerce ecosystem. This change is already underway: informal workers, who are numerous in the country and usually prefer spending and getting paid in cash, are already adopting PIX.
Instant payments around the world
The instant payment experience is not exclusive to Brazil, though. The country is following in the footsteps of other internationally successful experiences. The FIS® Flavors of Fast 2020 report indicates that India is leading the instant payment race, processing 41 million transactions a day. Meanwhile, South Korea has the highest rate of per capita transactions a year: 75 per person. Singapore, Australia and the UK are also thriving with their instant payment solutions.
In this new era, convenience comes first, and customers are eager for it when making payments across the globe. Major fans of social media and of new technologies, Brazilians are extremally connected and use their smartphones as their main windows to the world. It’s only natural that a payment method like PIX, using this device as its main channel, is prospering in the market. Worldpay from FIS is ready to activate merchants wanting to keep up with the new trends and who wish to play an important role in the future of Brazil’s e-commerce.