If Pix had no trouble winning over the Brazilians, the adoption of this instant payment method should grow even more as the new features planned by the Central Bank come into play. The next innovation, which starts on February 28, is Pix by Approximation (or Pix by Biometrics).
It allows consumers to make payments by simply bringing a cell phone with NFC technology closer to the terminals, without the need to open the bank app. For this, it is enough that the Pix key has been previously registered in a digital wallet. In online purchases, the payment completion is done directly in the virtual store environment, without having to access the financial institution’s app. In both cases, the payment process becomes much simpler and smoother.
The feature has been operating since November in tests involving some banks and payment transaction initiators, the ITPs. With the official launch, although including Pix by Approximation in bank apps and wallets will not be mandatory, players who do not offer this convenience to their customers will lag behind in the competition.
But there would be no reasons for that, since Pix by Approximation brings numerous benefits, whether for consumers, merchants, or companies. Bruno Loiola, co-founder of Pluggy, a fintech that offers payment and financial data solutions for companies through Open Finance, highlights that the impact of this novelty is more visible in retail, but goes far beyond, potentially even affecting public transportation. See below some positive impacts of the new Pix feature.
Greater agility in face-to-face transactions. In physical retail, Pix by Proximity will reduce the time required for payments, eliminating the need to scan QR Codes or enter Pix keys. “Currently, there is a great friction when paying with Pix: the consumer needs to open the phone, access the bank app, enter credentials, and locate the Pix area to complete the transaction. With the new functionality, the payment will be made directly in virtual wallets, bringing the phone closer. More and more people are expected to adopt this method, improving the shopping experience,” Loiola predicts.
More conversion in online transactions. Payment by Pix is already common in the online environment. But now it gains functionalities, allowing to increase conversion and eliminate some intermediaries and risks of other payment methods like credit card or boleto. Just as some e-commerces have the functionality to pay with one click using a credit card, it will be possible to do the same with Pix. By securely storing the Pix key in a virtual wallet or even within the favorite store, the consumer can authorize an online transaction with a simple confirmation of their biometrics on the phone.
More security for consumers and businesses. The functionality will bring more protection against fraud, as payments will only be authorized through device authentication, via biometrics or password. In addition, with the reduction of the need for physical contact and the exposure of sensitive data, users will have greater peace of mind when conducting transactions
Another security advantage is that the consumer can view on their cell phone the amount to be debited before approving the transaction. In current contactless card payments, the amount is only shown on the card machines, which can also be susceptible to fraud.
Ease for companies in managing receivables. For companies, especially in the retail and services sector, Pix by Proximity will simplify financial reconciliation and reduce costs with other forms of payment, such as card machines and bank slips. “Not to mention that, in instant transactions, the receipt is immediate. This can result in a higher profit margin and less dependence on financial intermediaries”, adds the Pluggy executive.
Expansion of Pix usage in transportation and services. The new feature will allow public transportation, such as buses and subways, to adopt Pix in an even more practical way, as a direct alternative to electronic tickets and transport cards. And services like tolls and parking lots can be paid more smoothly and without friction.
