In the midst of the Coronavirus outbreak, the good news announced by the Banco Central do Brasil (Central Bank of Brazil) came to encourage the market and respond to the need for a secure, transparent and cheap payment method, alternative to credit cards.
PIX – Brazilian Instant Payment Scheme – will allow, for the first time in Brazil, money transfers and payments between people, companies and entities, in just a few minutes at any time, any day of the week, including holidays. It will also allow payment bills, Boleto Bancário payments, and taxes and services fees. All this in real time, and in a practical and safe way, through online and mobile banking, and ATMs.
According to Banco Central do Brasil (BCB), PIX’s streamlined procedure may start with QR codes or mobile phone number, e-mail address, and tax identification number. By November 2020, when it’s expected to be fully operational, all details will be announced. Until then, we present you with the essentials all merchants should know about PIX.
The relevance of PIX for Brazil and its market
As mentioned in a previous article, Brazil’s payment ecosystem is entirely different to Europe or the USA. To date, in Brazil is still not possible to make instant payments, as already happens in Europe, through SEPA. As BCB explains, «instant payments are electronic money transfers in which the payment messaging and funs availability for the payee are real-time tasks».
But, by November, Brazil will experience a true revolution when PIX become fully operational:
- it will enable an open environment for fintechs, and big techs
- it will enable the emergence of new business models
- it will promote the reduction of social cost related to paper-based instruments’ usage
- it will leverage the market competitiveness and efficiency
- it will promote financial inclusion
- it will improve customer experience, both for payers and payees
Similar to Europe’s system SEPA, PIX will be mandatory for all the larger banks in Brazil, and will allow instant payment transfers such as:
- P2P (peer-to-peer) transactions
- P2B (peer-to-business) transactions, including e-commerce
- B2B (business-to-business) transactions, including supplier payments
- P2G (peer-to-government) transactions, and B2G (business-to-government) transactions, including as government fees and tax collection
- G2P and G2B transactions, such as payroll and social benefits payments, services and contracts
PIX benefits for all parties
Partner with BoaCompra to integrate PIX
Thus, the quickest, easiest and most effective way for merchants to keep up with this innovation is partnering with BoaCompra.