Pix matures in 5 years and continues to innovate |Finance

“A lot of times you don’t have money in your wallet, and Pix comes to the rescue. I think another reason Pix usage is increasing is because the public wants to make it easier for small entrepreneurs to get money so they don’t have to pay card fees,” he says.

Pix, which turns five on the 16th, has changed the way millions of Brazilians pay and the logic of many businesses. In Mr. Hasegawa’s case, depending on the event, the percentage of card payments may exceed that. In other regions, it’s about 50-50.

Illustrator experience is also recorded in Pix usage statistics. In October, the number of person-to-person (P2B) payments exceeded the number of person-to-person (P2P) transfers. According to data from the Central Bank (BC), there were 2.72 billion P2B transactions in the month, accounting for 44% of the total, and 2.69 billion P2P transactions, accounting for 43% of the total.

The data shows the evolution of Pix as a payment method. As soon as this system was launched, it first became popular for transferring money between people, replacing physical money and traditional TED and DOC (which no longer exist). Little by little, it has also been adopted for payments between customers and businesses. Benefits such as instant payment for online sales and greater discounts due to lower costs compared to card fees have become clear, accelerating business adoption.

This change, while subtle, reflects the continued growth in the number of entities registered with Pix and the BC-led innovation agenda that has carved out a new space for instant media. This year alone, authorities launched two payment initiatives for businesses: Pix by contact and Pix Automatic. He’s still working on Pix Parcelado, which acts as a type of digital credit card.

As a result of a project led by B.C. engineers, the development of Pix was taken over by former municipal mayor Ilan Goldfein, and his successor, Roberto Campos Neto, accelerated the development with active private sector participation in discussions. Planning for the project continues under the current management of Gabriel Garipolo.

According to an Oliver Wyman study using data from British Columbia, Pix accounted for 51% of transactions made across all payment methods this year. Nevertheless, Rogelio Panca, a senior advisor at the consultancy, emphasized the context. In other words, because the number of transactions increased overall, the number of credit card transactions, for example, increased even though the number of participants decreased.

Panca said the number of credit cards issued has also increased since the launch of Pix, indicating that payment methods are coexisting. “Pix brings access to banks, allowing issuers to get to know their customers and ultimately offer them debit and even credit cards in the first place,” he said.

Although the expert said he did not predict it “with the tip of a pencil,” he expects the number of transactions from individuals to businesses to increase further in the coming months, including for year-end shopping.

Panca also said that Pix Automatic “has space to occupy.” The tool, launched in June, is increasingly being used as an alternative to direct debits and other recurring payment methods. In August, the amount traded in this way was R$1.1 million, rising to R$7.3 million in October.

Renato Gomes, BC’s organizational director for treasury and resolution systems, says this feature has created competition in several markets. “Pix Automático allows the smallest banks and clearinghouses to compete on an equal footing with ‘banks’, just as corner gyms can compete on equal terms with larger gyms, because they have access to the same convenient direct debits,” he said in an online broadcast this week.

Another change this year was Pix by Contacts. Since February, customers have been able to link their bank or payment institution account to a digital wallet such as Google Pay and make in-person payments by holding their phone close to a machine, just like they would with a card. The modality has been gaining momentum in recent months, reaching 8.7 million cases in October.

The agenda also includes the launch of rules to standardize the Pix Parcelado delivery experience, which is already offered by several institutions. The rules were expected to be published in October, but that did not happen. This week, BC’s president said the product is already available, explaining that there are discussions about which types of experiences should have “a little more friction” in adoption.

Mareska Tiveron, partner at Viseu Advogados, says Pix’s news content is “innovative and active” and that the tool has benefits, especially for small and medium-sized businesses, such as lower operating costs and immediate access to resources. “This means businesses have more flexibility to attract more customers and even offer discounts,” he says.