Among the many peculiarities of the Brazilian market, the launch of Pix at the end of 2020 is certainly one of the most peculiar. This payment method, which is exclusive to the country, has quickly become a favourite with users. There are already more than 150 million of them. It's no coincidence that its offer has now become almost obligatory for anyone who wants to expand their business in Brazil. But how does Pix work in Brazil? Do you know why it has taken over electronic transactions in the country? Does your company already offer this integration to its customers? In this article, we'll take a look at Pix's features and present the simplest and safest way to offer it to your target audience.
According to the Central Bank of Brazil, which is responsible for Pix, it was conceived as a broad means of payment. Firstly, because it can replace several others (such as traditional bank transfers, credit cards and digital wallets, for example). But also because of the convenience of operating it via smartphone, reaching even people without access to credit.
Basically, Pix speeds up and reduces the bureaucracy of electronic payments and transfers. This is because, among other things, it makes it possible to transfer funds directly between people's and/or companies' accounts, thus reducing operating costs. Even transactions between different banks are free of charge in this modality, which works 24 hours a day, every day. What's more, it only takes a few seconds for funds to be transferred from the payer's account to the payee's account.
This ease of use has propelled Pix to true stardom, winning its fans and attracting the attention of global merchants. For perspective, "How does Pix work in Brazil" is a frequently asked question on Google in several countries. After all, we're talking about a payment method that generated almost R$ 11 trillion by 2022. In addition, there are more than 66 million Pix transactions every day in Brazil, where online transactions are growing significantly.
Pix uses simplified identification keys for each account. Users no longer have to fill in multiple fields to transfer money or make payments.
Previously, a transfer between account holders at different institutions required a bank code, branch and account numbers and the recipient's personal details. Now all you need to enter is the recipient's Pix key - which can be their phone number or email address. It is also possible to register the "CPF" (equivalent to the Social Number in other countries or UTR -unique taxpayer reference) as the key. Alternatively, if you prefer or need more keys, you can use random sequences generated by the system. In any case, a single Pix key is enough to transfer funds to a person or company in a matter of seconds.
You can also generate a QR code from the key or a Pix Copy and Paste. Both are excellent alternatives for online transactions. While the first is ideal for websites accessed on a computer, the second is more convenient for mobile interfaces. This allows the user to make the transfer to the merchant's account with just a few touches on the smartphone screen.
As you can see, many advantages make Pix a successful payment method in Brazil. Among the main features of this payment method, we can highlight the following:
- Instant. Pix transactions take only a few seconds. In other words, the funds are available to the recipient in real-time;
- Availability. Unlike other payment methods, Pix works 24 hours a day, seven days a week, including public holidays. According to Agência Brasil, on 4 August 2023, Pix exceeded 142.4 million transfers in 24 hours for the first time. It passed the test outstandingly, without any instability
- Convenient. Requiring only a smartphone and the recipient's Pix key, the user experience is extremely simple
- Secure. Multiple layers of security and constant monitoring of transactions guarantee a smooth user experience;
- Versatile. Because of its convenience, Pix is rapidly replacing traditional bank transfers. But it has also emerged as an option for credit card transactions. What's more, it can be used for many different types of payments among people, businesses and governments, regardless of the transaction amount. Whether it's an ice cream on the beach or a federal tax, Pix can now be used to pay for almost anything in Brazil.
- Integrated. With Pix, important reconciliation information can be sent along with the payment order, making it easier to automate and reconcile processes.
The Central Bank of Brazil guarantees Pix's security in four dimensions. These are user authentication, transaction traceability, secure information traffic and Pix's own rules.
All transactions can only be initiated within the secure environment of the user's relationship institution. In addition, this environment must be protected by a password or other built-in security device, such as biometrics or a token.
All Pix transactions are 100% traceable. It is therefore possible to identify accounts that have received funds from fraud, scams or other crimes.
The Pix transaction information is transmitted in encrypted form over the National Financial System Network (RSFN). This network operates separately from the Internet and requires all those participating in Pix to hold Security Certificates. In addition, transaction information and personal data linked to Pix keys remain encrypted in the central bank's internal systems.
Pix's own rules include several measures to mitigate the risk of fraud. For example, a prohibition on scanning personal data associated with the Pix key. We can also mention the rule of a differentiated maximum authorisation time in the case of non-typical transactions initiated by users with a high probability of fraud. There are also mechanisms to facilitate the blocking and possible return of funds in the event of fraud.
As you can see, Pix has captured the Brazilian market and is revolutionising the way financial transactions are carried out in the country. To expand your business in this market, offering this payment method to your customers is therefore a good choice.
With a single integration, Bazk guarantees a fast, transparent and secure experience, connected to multiple financial institutions. As a result, global merchants can easily offer their customers the main payment methods in Brazil - including Pix. So if your company is looking for a complete and secure solution for hassle-free local and international payments, please contact us.
