Expert explains how Pix by Approximation will benefit people and businesses

If Pix had no difficulty falling in the taste of Brazilians, the adherence to this mode of instant payment should grow even more, as the new features provided by the Central Bank are entering the scene. The next novelty, which begins to take effect on February 28, is the Pix by Approximation (or Pix by Biometrics). 

It allows the consumer to make payments approaching a mobile phone with NFC technology of the machines, without the need to open the bank's application. For this, it is enough that the pix key has been previously registered in a digital wallet. Already in purchases over the internet, the payment is finalized in the environment of the virtual store, without having to access the application of the financial institution. In both cases, the payment journey becomes much simpler and fluid.

The feature had already been operated since November in tests involving some banks and payment transaction initiators, the ITPs. With the official entry into force, although the inclusion of Pix by Approximation in banking and wallet applications is not mandatory, players who do not offer the facility to their customers will lag behind the competition.

But there would be no reason for this, since Pix by Approximation brings numerous benefits, whether for consumers, merchants and companies. Bruno Loiola, co-founder of Pluggy, fintech that offers payment solutions and financial data for companies through Open Finance, highlights that the repercussion of the novelty is more visible in retail, but goes much further, and can impact even public transportation.

Greater agility in face-to-face transactions. In physical retail, Pix by Approximation will reduce the time required for payments, eliminating the need to scan QR Codes or type Pix keys.“Currently, there is great friction when paying with Pix: the consumer needs to open the mobile phone, access the bank application, enter credentials and locate the Pix area to complete the transaction. With the new functionality, payment will be made directly in virtual wallets, bringing the mobile phone closer. More and more people should 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 gains features, which allow to increase conversion and eliminate some intermediaries and risks of other payment methods such as card or ticket. Just as some e-commerce have the functionality to pay with a click on the 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 the simple confirmation of his biometrics on the mobile. 

More security for consumers and businesses. The functionality will provide more protection against fraud, as payments will only be authorized through device authentication, through biometrics or password.In addition, with the reduction of the need for physical contact and exposure of sensitive data, users will have greater peace of mind when conducting transactions

Another advantage in terms of security is that the consumer can see on the mobile the amount to be charged, before approving the transaction. Already in the current payments by approaching the card, the value is shown only on the machines, which can also be subject to fraud. 

Facility for companies in managing receipts. For businesses, especially in the retail and services sector, Pix by Approximation will simplify financial reconciliation and reduce costs with other forms of payment, such as card machines and bank slips.“This is not to mention that in the instant transaction, receipt is immediate. This can result in a higher profit margin and less dependence on financial intermediaries”, adds the Pluggy executive.

Expanding use of Pix in transportation and services. The new functionality will allow public transport, such as buses and subways, to adopt the Pix even more practically, as a direct alternative to electronic tickets and transport cards.