Over the past few years, the online payment market in Brazil has undergone significant changes. A large part of this movement is due to the emergence of Pix, which the Central Bank of Brazil launched in November 2020. This method has quickly become a favourite among Brazilians, as it combines convenience (since it eliminates the need for a card or even a bank account), availability, and speed.
For a better understanding, consider the following: in 2023 alone, there were 42 billion Pix transactions, an increase of 75% compared to the previous year, according to the Brazilian Federation of Banks (Febraban). It is therefore imperative for merchants interested in expanding their presence in Brazil to include Pix as a payment option on their websites. With Brazilian roots and a deep understanding of local preferences, Bazk is a reference in cross-border payment solutions, including Pix and other methods used in the country.
Pix stands out for its simplicity and efficiency. It allows for instant transfers and payments, 24 hours a day, every day of the week – including holidays. This accessibility has allowed it to exceed traditional payment methods such as credit and debit cards and bank slips in Brazilians' preferences. According to Febraban, the total number of transactions will reach 39.4 billion in 2023.
According to the Central Bank of Brazil, there were 753,568,149 active Pix keys in the country as of May 2024. These numbers underscore the significance of providing Pix as an online payment option for international merchants. Not offering Pix could mean missing out on a large customer base that relies on this payment method for their transactions.
One of the biggest benefits of Pix is its speed. Transactions are completed in seconds, regardless of the day or time. This feature improves the customer experience and speeds up the cash cycle for merchants.
For consumers, Pix is free to use, making it appealing. For merchants, the fees are generally lower than other payment methods. This makes it a strategic choice, potentially leading to savings on transaction fees.
Pix is accessible to anyone with a bank account or digital wallet in Brazil. This includes those without a credit card. This is particularly important in a country where not everyone has access to credit, but most people have a smartphone - the very tool that makes Pix payments possible.
One of the most popular practical examples is the use of Pix for online subscription payments. Imagine a platform like a foreign image bank. Users would need an international credit card to buy a photo or subscribe to a monthly plan. However, not all Brazilians have one, which would prevent access to the tool.
By integrating Pix as a payment method, the service can significantly expand its user base. This integration allows anyone with a bank account or digital wallet in Brazil to access its features without the need for a credit card. As a result, the service becomes accessible to a broader audience, including those who may not have credit cards.
This is also the case for other websites, such as those for the sale of flight reservations, accommodation, or other experiences. If the merchant requires online payment by credit card, there is a barrier to entry. By including Pix, however, a much larger proportion of Brazilians will be able to use their services.
Currently, the need for a credit card makes it difficult for some Brazilians to book international accommodation. As platforms start to offer Pix, they're making it easier for millions of Brazilians to access,increasing their revenues.
In addition to simplifying international online payments, Pix can also greatly simplify the process of integrating it. This method can be used by companies operating in Brazil and abroad to perform fast and inexpensive transfers, eliminating barriers and costs associated with cross-border payments.
In addition, Pix promotes financial inclusion - an important factor in emerging markets. This is possible because this online payment method allows almost anyone with a smartphone to be part of the digital economy.
This is particularly important in a country like Brazil, where internet consumption is growing, but people without access to credit still face barriers on platforms that do not accept Pix.
Therefore, with the offer of Pix, merchants have access to a wider and more diverse customer base. It is important to note that the system, which was developed by the Central Bank of Brazil, uses strong authentication and encryption to protect the transactions. As a result, it is a safe and secure online payment option for both the customer and the business.
As can be seen, Pix has revolutionised the payment market in Brazil, offering a fast, secure, and accessible solution for everyone. Merchants looking to expand their presence in the country must consider including Pix as an online payment option. Bazk is an expert in the Latin American market and offers complete local currency payment solutions, including Pix, to make transactions easier.
If you would like to deepen your understanding of the Brazilian market and gain a better insight into local consumer behaviour, then access our free e-book now.
