Voice of the Industry

Pix goes live: updated numbers on the new instant payment method in Brazil

Tuesday 15 December 2020 07:17 CET | Editor: Anda Kania | Voice of the industry

Ralf Germer, CEO and Co-Founder of PagBrasil, outlines the successful start of Pix in Brazil, and its potential of driving mobile payments in the country, now that PagBrasil’s platform enables this instant payment method

After much anticipation, Pix – Brazil’s instant payments platform developed by the Central Bank of Brazil – has gone live for the entire Brazilian population. The new payment method allows immediate money transfer, 24 hours a day, 7 days a week, including weekends and holidays.

By the 3rd  of December, the Central Bank of Brazil had registered over 100 million Pix keys. Now, 60% of Brazilians already prefer Pix over TED (Express Wire Transfer) and DOCs (Credit Transfer Document), according to a research carried out by C6 Bank and IBOPEdtm. Further, 91% already know about Pix and find the new payment method safe.

The research also shows that adoption is higher in the North of the country, followed by the Southeast region. When considering user profile, Pix has a higher penetration among men aged from 25 to 34, from social groups AB.

The numbers of Pix on 2020’s Black Friday in Brazil

With its debut days before Black Friday, there has been some speculation whether Pix would have a major adoption on the most important day for retail. According to a research carried out by Conversion, only 3% of the Brazilian population planned to pay with Pix on Black Friday.

But the numbers were actually quite surprising: according to the Central Bank of Brazil, more than 3 million transactions were made during Black Friday, reaching a BRL 3.3 billion revenue overall. This obviously englobes transfers and payments.

Pix to drive mobile payment adoption in Brazil

With its 141.5 million mobile internet users in Brazil, according to Statista’s Key Market Indicatiors, mobile payment adoption should increase significantly with the entry of Pix.

Although highly connected, Brazil has a large unbanked and underbanked population; with Pix, however, users can make instant payments using their e-wallets, with no need for a formal bank account.

Because payments can be done instantly and at no cost to users from different banks and e-wallets, paying with their mobile devices will become more of a habit for Brazilian consumers. According to a survey carried out by Mobile Time and Opinion Box on m-commerce and m-payments in Brazil, digital wallet usage has already increased in 2020 in light of the COVID-19 pandemic. The study shows that 48% of Brazilians have already experimented paying with QR codes.

Will WhatsApp Pay take over the digital payments landscape in Brazil?

Initially planned to be launched in June 2020, WhatsApp Pay should become available soon, according to The Central Bank of Brazil’s president, Roberto Campos Neto. At first, it will be available for P2P transfers only, and will be expanded for P2M later on.

With this new payment model, there has been some speculation on whether WhatsApp Pay would replace Pix in some way. After all, according to the Digital 2020: Brazil report, carried out by We Are Social and Hootsuite, 96% of internet users aged 16 to 64 report using chat apps, with WhatsApp leading as the top mobile app by average monthly users.

But what is important to keep in mind is that both Pix and WhatsApp actually drive more innovation in the payments landscape, as it encourages competition. This leaves other fintech companies to develop and deliver better payment solutions.

In addition to WhatsApp, the Central Bank of Brazil is also maintaining conversions with other big techs, such as Google. However, further details have not yet been disclosed.

Pix in ecommerce: driving inclusion and enhancing customer experience

The Brazilian ecommerce market will also benefit from Pix, mainly for two reasons. Firstly, customers who do not have a bank account will be able to easily make purchases online, in a fast and intuitive manner. Secondly, with instant payment confirmation, products can be quickly released, and services immediately made available. This drives more inclusion and provides a better experience when shopping online.

PagBrasil has been exhaustively working to deliver Pix for online merchants selling to Brazil. The new payment method will be 100% operational by the first quarter of 2021.

About Ralf Germer

Ralf is CEO and Co-Founder of PagBrasil. His fields of expertise are business management, international business development, marketing, online sales, and payment processing. Prior to PagBrasil, he was Vice President of Product Marketing Europe at Actebis and later founded 4M Iberoamérica.

About PagBrasil

PagBrasil is an online payment platform for Brazil, with gateway and collection services. Its broad set of local payment methods includes the exclusive Boleto Flash with responsive technology. The company’s state-of-the-art infrastructure offers flexible integration methods, with extensions for Shopify, Magento, WooCommerce, VTEX, among others. PagBrasil has a full set of advanced services, including an automated split-payout solution for marketplaces, especially aimed at boosting online sales in Brazil.

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Keywords: PagBrasil, PIX, instant payments, emerging markets, mobile payments, online payments, payment infrastructure, fintech
Categories: Payments & Commerce
Countries: Brazil
This article is part of category

Payments & Commerce