The Pix Revolution: How to innovate without sacrificing security

Since its launch in 2020, Pix has revolutionized the Brazilian financial market, becoming the preferred payment method for millions of people. Its main advantage lies in its simplicity and speed: it enables real-time transfers, 24 hours a day, without the need for a card machine or cash. All that is required is a bank account and a PIX key, such as a CPF or phone number, to start using it. This convenience has brought benefits, especially for those who receive payments, such as small merchants and self-employed individuals, who can operate without additional costs or technical complications.

However, despite its popularity, Pix still faces challenges in being fully accessible. For those making payments, a smartphone and internet access are required, which can be a barrier for the elderly, people with low levels of education, or residents of rural areas. Although smartphone usage and internet coverage have grown significantly, the inclusion of these groups still requires efforts, such as digital education campaigns and improvements in connectivity infrastructure. The implementation of solutions enabling offline transactions, using encryption and tokenization technologies, could be a path to broaden access. Systems like Google Pay and Apple Pay already do this, allowing payments to be initiated without an active connection from the payer, utilizing the recipient's internet connection.

Security is also a constant concern. Since the first cases of quick kidnappings and robberies involving instant transfers, the Central Bank reacted quickly, imposing limits for nighttime transactions and this month introduced a limit of R$ 200 for new devices not yet registered as authorized in the bank's application (this will only apply to devices that were not in use before 12/01/2024). Although these measures have reduced the occurrence of crimes, they have also imposed restrictions that affect the experience of legitimate users. The search for solutions that maintain security without sacrificing usability remains a challenge.

Another critical point are the scams related to pre-payment, where fraudsters receive the amount and disappear without delivering the promised product or service. The Special Reimbursement Mechanism (MED) was created to handle these situations, allowing for refunds in proven cases of fraud. Although still underutilized, the MED represents an important advancement, inspired by the credit card chargeback system, and needs to be more widely disseminated to gain user trust.

One solution that could further transform the landscape is the adoption of escrow payments. In this model, the amount would only be released to the seller after the buyer confirms delivery. This would bring more security for both parties and would be especially useful in online transactions. Furthermore, expanding the use of tokenization in transactions would ensure that sensitive data is protected, even in offline environments, offering an extra layer of security.

The balance between accessibility and security is fundamental for the future of Pix. Solutions that integrate technologies such as biometrics, tokenization, and escrow can expand the system's reach without compromising user protection. Digital inclusion, in turn, is essential to reduce fraud by increasing awareness and enabling more people to use Pix safely.

On the horizon, Pix still has much to offer. Proximity payments, installment plans, and automatic debit are already under development in Brazil, and are already operational in similar systems abroad, such as India's UPI and Singapore's PayNow. International integration is also a possibility, with the Nexus Project, of the Bank for International Settlements (BIS) Proposing a multinational interface model to facilitate global remittances.

Pix is already an example of innovation and efficiency, but to continue leading, it needs to evolve constantly. Investing in new technologies, expanding access in less connected areas, and strengthening security are essential steps to ensure that all Brazilians can enjoy its benefits with confidence and peace of mind.