Expert Explains How Pix Tap-to-Pay Will Benefit People and Businesses

If Pix hasn't had difficulty gaining popularity with Brazilians, adoption of this instant payment method is expected to grow even further as the new functionalities introduced by the Central Bank come into play. The next innovation, which begins on February 28th, is Pix by Proximity (or Pix by Biometrics). 

It allows consumers to make payments by bringing an NFC-enabled mobile phone close to the payment terminal, eliminating the need to open a bank app. For this, the Pix key must have been previously registered in a digital wallet. For online purchases, the payment is finalized directly within the online store's environment, without having to access the financial institution's app. In both cases, the payment journey becomes much simpler and smoother.

The resource has been operating in tests involving some banks and payment transaction initiators, the ITPs, since November. With official implementation, although including Pix by Approach in bank applications and wallets is not mandatory, players who don't offer this convenience to their customers will fall behind the competition.

But there would be no reason for that, since Pix by Proximity brings numerous benefits, whether for consumers, merchants, and businesses. Bruno Loiola, co-founder of Pluggy, a fintech that offers payment and financial data solutions for companies through Open Finance, highlights that the novelty's impact is most visible in retail, but goes far beyond, potentially impacting even public transportation. See below some positive impacts of the new Pix feature.

Greater agility in in-person transactions. In physical retail, Pix by Proximity will reduce payment times by eliminating the need to scan QR codes or type Pix keys. "Currently, there's significant friction when paying with Pix: the consumer needs to open their phone, access the bank app, enter credentials, and locate the Pix area to complete the transaction. With the new functionality, payments will be made directly to virtual wallets by approaching the phone. More and more people should adopt this method, improving the shopping experience," predicts Loiola.

More conversions in online transactions. Pix payment is already common in the online environment. But now it gains functionalities that allow increased conversion and the elimination of some intermediaries and risks associated with other payment methods like credit cards or bank slips. Just as some e-commerce sites allow one-click credit card payments, it will be possible to do the same with Pix. By securely storing the Pix key in a virtual wallet or even within a favorite store, the consumer can authorize an online transaction with a simple biometric confirmation on their phone. 

More security for consumers and businesses. This feature will provide greater fraud protection, as payments will only be authorized upon device authentication using biometrics or a password. Furthermore, by reducing the need for physical contact and the exposure of sensitive data, users will feel more secure when making transactions.

Another security advantage is that the consumer can view the debit amount on their phone before approving the transaction. In current contactless card payments, the amount is only displayed on the payment terminal, which can also be susceptible to fraud. 

Ease for businesses in managing receivables. For businesses, especially in the retail and services sectors, Pix by Proximity will simplify financial reconciliation and reduce costs compared to other payment methods, such as card machines and bank drafts. "This is aside from the fact that, with the instant transaction, receipt is immediate. This can lead to a higher profit margin and reduced dependence on financial intermediaries," adds the Pluggy executive.

Expansion of Pix's use 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. Services like toll roads and parking will also be able to be paid more smoothly and seamlessly.