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For decades, cash was king in Latin America. However, this may no longer be true, especially in Brazil, where cash withdrawals are on the decline. From being a largely unbanked country, Brazil has evolved into Latin America's largest digital commerce market and one of the world's leading financial innovation hubs.
Some credit this massive shift to PIX Pay, the real-time payments (RTP) disruptor launched by Brazil's Central Bank in late 2020. For merchants looking to expand in Brazil or across South America, integrating PIX Pay can offer a competitive edge. With its fast transactions, low costs, and widespread adoption, PIX Pay enables businesses to tap into Brazil's booming digital economy and attract a customer base of over 160.5 million users.
This guide will walk you through everything you need to know about PIX Pay, from its operation to its benefits and usage.
What is PIX Pay?
PIX Pay is an instant payment system introduced by the Central Bank of Brazil in 2020 to modernise financial transactions and increase financial inclusion. It allows users to make real-time payments and transfers 24/7, without being restricted by traditional banking hours or costly transaction fees. PIX Pay works through banking apps, digital banks, and other payment service providers, enabling Brazilians to transfer money, pay bills, shop online, and even perform cash withdrawals with unparalleled ease.
Since its launch, PIX Pay has seen explosive growth. According to the Central Bank of Brazil, PIX Pay is now the preferred payment method in the country, accounting for 76.4% of all payment transactions in 2024, surpassing traditional payment methods like debit and credit cards.
Its widespread adoption has been credited to its ease of use, cost-efficiency, and strong government backing.
What are the key features of PIX Pay?
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PIX Pay vs. traditional payment methods |
|||
|
Feature |
PIX Pay |
Cards |
Cash |
|
Processing speed |
Instant |
1 to 3 business days |
Immediate |
|
Availability |
24/7 |
Business hours |
Requires ATMs |
|
Cost for users |
Free or minimal |
High card fees |
Free or minimal, dependent on ATM |
|
Transaction method |
Digital |
Card required |
Physical exchange |
|
Ease of use |
Easy with PIX keys |
Card required |
Dependent on change |
- Instant payments. Unlike traditional bank transfers like TED or DOC, PIX Pay allows for real-time payments that are completed in seconds, regardless of the bank or service provider used.
- Versatile payment options. PIX Pay supports various payment methods, such as transfers between bank accounts, QR code payments, and even cash withdrawals from participating merchants.
- Cost-effective transactions. PIX Pay is free for individuals and offers significantly lower costs for businesses compared to traditional payment methods like credit cards or bank slips.
- Security and reliability. PIX Pay incorporates advanced security features such as end-to-end encryption and two-factor authentication (2FA) to ensure safe transactions.
- 24/7 availability. PIX Pay operates round-the-clock, ensuring users can make payments any time, even during weekends and holidays.
- QR code payments. Users can scan a QR code generated by merchants or peers to complete transactions quickly and securely.
- Cash withdrawals from merchants. PIX Pay enables cash withdrawals directly from participating merchants, offering an alternative to automated teller machines (ATMs).
What are the key benefits of PIX Pay?
For businesses looking to expand in Brazil or across South America, PIX Pay offers several unique advantages:
Faster payment settlements
PIX Pay operates as a real-time payment network, so transactions are completed within seconds. With PIX Pay's instant transaction process, businesses gain immediate access to funds, improving cash flow and enabling faster inventory management or reinvestment in operations. This ensures merchants can better manage working capital and meet customer demand without delays.
Lower transaction costs
Compared to traditional debit and credit card processing fees or bank slip costs, PIX Pay transactions are significantly cheaper. For SMEs and start-ups, this cost reduction can directly improve profit margins. Lower fees also enable merchants to offer discounts or promotions that attract more customers.
Enhanced customer convenience
Offering PIX Pay as a payment option meets the growing demand from Brazilian consumers for fast, digital transactions. Customers appreciate the simplicity and speed of PIX Pay, improving their overall shopping experience and encouraging repeat purchases. As more Brazilian shoppers embrace PIX Pay, businesses that adopt it are better positioned to meet this demand.
Wider customer reach
PIX Pay integrates seamlesslywith major banking apps, digital banks, and fintech services, ensuring businesses can reach both banked and unbanked consumers across Brazil. This expanded reach opens opportunities for businesses to serve a broader audience, especially in regions where traditional banking is less accessible.
Flexibility for in-store and online sales
PIX Pay's versatile payment methods cater to both e-commerce businessesand brick-and-mortar stores. This includes QR codes and PIX keys, or address keys used to identify a user's account. So, whether a customer is shopping online or making an in-store purchase, PIX Pay offers a frictionless checkout experience.
Boosting cross-border opportunities across South America
By leveraging PIX Pay as a payment method, international merchants can tap into the fast-growing Brazilian e-commerce market while minimising currency exchange delays and transaction fees. This is especially valuable for merchants entering South American markets where digital payments are expanding rapidly. As other countries in the region explore similar payment systems, businesses that already support PIX Pay are better positioned to expand operations in neighbouring markets.
How does PIX Pay work?
- Register a PIX key. Users can link their account to a PIX key, a unique address key that helps identify a user's account using their individual tax ID (CPF/CNPJ), phone number, email address, or a randomly generated code.
- Make a payment or money transfer. Users can send money by entering a PIX key, scanning a QR code, or inputting banking details. Payments are processed instantly, in under 10 seconds.
- Receive money. To receive payments, users can share their PIX key or generate a QR code for the sender to scan.
- Use for everyday needs. PIX Pay can be used for paying utility bills, taxes, shopping online, or transferring money to friends and family.
Expand your business to Brazil and beyond with Antom
As digital payments continue to dominate Brazil's payment landscape, PIX Pay stands out for its fast transactions, free to minimal processing fees, and widespread adoption thanks to strong government support.
For e-commerce merchants looking to expand to Brazil, leveraging PIX Pay not only grants access to an extensive customer base of over 160.5 million users, but also streamlines payment processes crucial for business growth in South America.
This is where Antom can help. With Antom, you can access an ecosystem of hundreds of payment methods across more than 40 countries — including PIX Pay.
With our deep market expertise, extensive partnerships network, and comprehensive payment technologies, we can help your business boost revenue, and support market entry to Brazil and beyond. Contact us to learn more about PIX Pay and other payment methods around the world.
