PayRetailers among the first to roll out PIX payment system
On November 16th the Central Bank of Brazil (BCB) has launched a payment system that will revolutionize the countries’ payment landscape. PayRetailers is among the first PSPs to include it as a payment option.
The new service called PIX is using peer-to-peer based payments which means that individuals can send money to each others or pay bills, taxes or fees to institutions. A big advantage is the real-time settlement and a similar approach to the European SEPA-system which allows for true 24/7 operations. Before PIX, consumers needed to wait for payment confirmations up to multiple days. The new system helps them and merchants alike accelerate the order process and convenience significantly.
Using an QR-based approach allows the consumer to pay quickly – Although they can still type in the information manually, the new system offers an elegant solution: Log in to mobile banking, select PIX and scan a QR-code. The data will be propagated automatically, and they only need to confirm with one tap. Similar to other mobile payment approaches the system allows for selecting recipients by their mail-address, phone number or CPF/CNPJ and offers the possibility to make NFC payments as well.
PIX enables companies with cross-border operations to further accelerate their growth in Brazil. It is expected that approx. 45M new users will adopt the system hence tapping into the world of fast and convenient online payments and boosting commerce revenues in the region. An important factor for the coming success is PIX being mandatory for all financial institutions licensed by the BCB which means more than 500,000 active accounts. These institutions have to offer the complete functionality for making instant payments.
Due to being BCB-controlled PIX is expected to become Brazil’s most wide-spread payment option. The BCB sees it as the first step towards a more standardized payment landscape that caters for easy financial inclusion with low usage barriers for consumers as well as merchants.
The system will be the biggest competitor of Boleto, a cash-based payment system in use for many years. Boleto accounts for 25% of the 150M purchases per year in Brazil which stems from the large unbanked population and the safety of the approach. Due to the meanwhile huge market penetration of smartphones and PIX being significantly quicker and easier to use, a disruption of Boleto can be expected.
Currently, PIX can only be used by BCB-authorized PSPs. PayRetailers is collaborating with an authorized bank in that regard and therefore can help your company leverage the benefits of this new system. Please contact us for more information.