PIX is used in Brazil, the largest e-commerce market on the South American continent and a highly attractive target for merchants across practically every industry.
What is PIX, how does it work, and how can merchants integrate this payment method into their e-commerce store?
South America’s largest e-commerce market, Brazil, is filled with new generations of customers who prefer buying products online – whether it’s cosmetics or electronics. Online shopping in Brazil has become more mobile-oriented than ever, generating twice as much revenue as before the pandemic.
Sales of goods through mobile commerce generate most of Brazil’s e-commerce revenue, a trend that is expected to increase in the future. Merchants who wish to enter this exciting market need to adjust their offer to the expectations of local customers.
This extends to the payment methods merchants offer their e-commerce customers. One of the most common payment options is PIX, a modern system that enables instant payments for customers in Brazil.
PIX is an instant payment method created and supported by the Central Bank of Brazil. All wallets and banks are interoperable with PIX as transfers and payments from one bank or payment institution to another happen in real-time.
By January 2022, PIX was used by 71% of the population in Brazil and generated a monthly volume of over $100 million from transferred funds. The last reports from the Brazilian Central Bank showed that PIX allows transfers between bank accounts within seconds, at any time or day. It is practical, fast, safe, and free, enabling all wallets that use QR codes to be interoperable.
When a shopper pays with PIX, they pay with an app on their phone or banking app. The merchant’s website displays a QR code or QR data for the shopper to copy. The customer can then open their banking or wallet app participating in PIX and select PIX as their payment method. Next, they scan the QR code or paste QR data to confirm payment.
Before approving the payment, PIX checks if the transaction follows the regulations of Brazil’s Central Bank. PIX ensures that it has sufficient funds in the transactional account, has no suspicion of fraud or breach of regulations preventing money laundering and terrorist financing, and no transaction time exceeds the maximum time limits defined by Brazil’s Central Bank. If approved, the amount is transferred in real-time from the shopper’s account to the payment service provider.
Thanks to free accounts and real-time advantage, PIX has became a tool of financial access and inclusion in Brazil. As a result, Brazilians no longer need to worry about making transfers only during business hours or waiting up to three business days to complete payment. PIX is always available, and Brazil’s Central Bank is currently developing some features which will allow PIX to be used offline and for international transactions. PIX transactions are as safe as wire transfers because they rely on authentication and cryptography. All personal PIX user data are safeguarded by the Central Bank of Brazil in compliance with local rules and regulations.
PIX allows merchants to receive payments anytime after a sale. Companies that offer PIX can provide a better customer experience as the payment solution is extremely popular in Brazil. Regarding suppliers, merchants can pay vendors immediately and improve business relationships, and this opens room for better negotiation and payment conditions. Furthermore, PIX allows better cash-flow management because funds become instantly available and can be reinvested or used to pay debts faster. In the end, decision-makers will have more flexibility when choosing what to do with the money since they won’t struggle with the strict deadlines required by other payment methods such as credit cards or boletos to have the funds available. PIX also reduces the risk of fraud associated with credit card payments, especially for digital businesses.
Instant payments are a great competitive advantage for digital businesses because they eliminate intermediaries in the payment chain, which means lower charges and fees. Since Brazil has almost 250 million active smartphones, PIX’s potential use of these devices fulfills the increasing consumer demand for immediate purchases.
As a payment method, PIX is very popular in Brazil, so any international e-commerce company looking to sell to the Brazilian market needs to accept it. The easiest way to accomplish that is by implementing a payment gateway that includes this payment option.
Payment service providers with global reach are the best partners for enabling PIX for your customers.
PIX is used in Brazil, the largest e-commerce market on the South American continent and a highly attractive target for merchants across practically every industry.
When a customer pays with PIX, they pay with their mobile device. The merchant’s website displays a QR code or QR data for the customer to copy. The customer can then open the PIX app and select PIX as their payment method. Next, they scan the QR code or paste QR data to confirm payment. If approved, the amount is transferred in real-time from the customer’s account to the payment service provider.
PIX is one of the most popular payment methods in Brazil. By January 2022, PIX was used by 71% of the population in Brazil, who transferred a total of over $100 million per month.
PIX is a payment method that allows merchants to receive funds immediately after a sale. PIX is popular in Brazil and is known for improving the customer experience as well as allowing better business relationships between suppliers and merchants. As a result, businesses can pay suppliers faster and easier than with other payment methods such as credit cards or boletos, which have strict deadlines for availability of funds. Furthermore, PIX reduces fraud since it is very secure and trusted by thousands of businesses worldwide.
To use PIX, companies need to implement a payment gateway that includes it. Payment service providers with international coverage are the best partners for enabling PIX payments for your customers.
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