Immediate. Free of charge. Popular. How Pix changed the way Brazilians shop and pay – and how it can improve your online sales
Pix, an instant, free of charge money transfer and payment method, was created in November 2020 by the Central Bank of Brazil, promising to be a remarkable evolution to the formats that have already operated in the country for decades.
With no fees for the end-user, fund transfers occurring instantaneously and with simple identification using a key, Pix quickly won over Brazilians’ preference. In June 2021, the volume of transactions was around R$ 441 billion, made among individuals, companies and the government, including payments and return orders in the period.
Pix is designed to operate natively in mobile devices, operating with simpler keys and QR Codes and integrating the Brazilian financial system. With the possibility of using e-mail addresses, personal information and even a cellphone number as a key, the method is even easier to be accepted and promptly used. That explains why, between its launch and December of the same year, 100 million keys were registered, a remarkable volume. By July 2021, 294 million keys were already reported, with 93 million individuals using the method.
Such a mechanism has great potential to impact the market, so companies must know how to take advantage of this opportunity.
Online shopping made easy
Consumers are following a solid tendency when it comes to shopping: digital payments. In the next few years, digital payments are expected to reach $10.5trn worldwide. The behaviour of the Brazilian population follows this trend as well, mainly due to technological improvements. Adding to that, there’s a high smartphone adherence, with around 141 million users only in Brazil in 2020.
With this preference for digital payments and presenting mobility, financial, and behavioural benefits, PIX had a tremendous growth: in December 2020, it represented 144 million transactions, while in June 2021 – only seven months after – the amount upscaled 743 million. This highlights the importance of accepting the method in online shopping and leveraging it.
Digital payments with no friction
Without filling in too many personal and bank details (the user just needs an identification key), payment is more straightforward and can be made by scanning a QR Code or inserting a Pix alias.
Once the transaction starts, it is irrevocable, processed in a few seconds. After the money is transferred, both parts are notified, and the value is instantly available. Therefore, this method already overcame the number of bank transfers. In May 2021, it even topped boletos, becoming a solid competitor for debit card payment in e-commerce or physical retail due to the 3D secure implementation difficulties that debit cards still face.
As mentioned above, Pix generates no fees for bank clients, making its use extremely attractive to the consumer.
Payment with immediate clearing makes Pix a fast and practical option for any company, adding a payment possibility for those who don’t have or don’t wish to use a credit card and expanding their potential customer base.
Pix is available 24/7, every hour and every day, making transactions instantaneous, more practical and more available when compared to other transaction methods like boletos and bank transfers, which can have a compensation of up to 3 business days.
A mobile-first payment method
Because it is mobile-first, Pix is ideal for customers to make payments from anywhere, whether at home, on the road, or on the move – and at any time of day. It expands sales possibilities for the merchant and brings a fast and solid purchasing experience for the consumer.
Speed, consistency, and free of cost: this is Pix, the system that is revolutionising payments in Brazil. All this makes it clear that merchants today need to include this payment method in their business, thus ensuring that all these benefits are available to their customers.
By accepting Pix, which has already become a customer favourite, companies expand their audience, including those who do not have credit or debit cards or prefer not to use them, in alignment with clients’ needs.
This payment method makes customers more likely to close their purchases because they know that payment will be made simply and quickly, without extra costs. Therefore, they are more likely to choose merchants that offer Pix as one of their payment options.
For those who seek to offer Pix but do not know how to start, it is worth checking a partner like BoaCompra, which specializes in local payments. BoaCompra delivers a one-stop payment solution for businesses, including Pix, as an option, thus increasing your chances of converting sales.
Want to know more about the major role offering Pix and other local payment methods play in companies aiming to sell in Brazil and all of Latin America? Then get in touch with us and find out how BoaCompra can help your company: