The Future of Pix and Payment Methods in Brazil

Since its launch, Pix has modernized the way Brazilians deal with money.Fast, free and available 24 hours a day, the instant system of the Central Bank has already consolidated itself as the main means of payment in the country. But the future promises even more transformations. The introduction of the Pix Parcelado, the Pix Guaranteed and the Pix International mark the next stage of this journey of innovation.  

It happens, however, that Pix is just a kind of “point of a real revolution currently underway in the country's payment methods, with benefits in terms of practicality and security for the entire population and the economy in general.  

But let's start with it, Pix. The guaranteed modality (in development by the Central Bank and that will make it possible to schedule or install payments via Pix even without available balance) will allow to make, as we have already mentioned, installment payments with guarantee for the receiver, democratizing credit and eliminating the need for a card. We also speak of Pix International, which will enable transfers between countries, expanding borders for trade, tourism and services. It is clear that, for the novelty to come into operation, it will be essential to overcome regulatory challenges, such as harmonization between different exchange systems and compliance policies. In other words, the payment systems of the country that will have to receive the Pixars with the Pixars will have to send those resources.  

Finally, and more immediately - we will now have in September the start of operations of the Pix Parcelado, a solution that will benefit companies of recurring services (eg gyms, schools, streaming, internet), consumption (water, telephone, gas, light), associations, condominiums and other entities. For companies, the novelty will bring benefits such as reduction of default and improvement in cash flow with receipts. At the tip of consumers, the gains are associated with convenience, transparency and flexibility for authorizations to cancellations.  

Alongside this evolution, the market is witnessing the rise of digital wallets (payment by card directly by mobile, by systems such as Apple Pay and Google Wallet) and super apps, which combine features such as account, card, and cashback these models deliver a fluid, user-centric experience and place traditional banks in the face of an urgent need for adaptation, especially in relation to technological integration and the use of real-time data.It is worth noting that today, according to a survey by Chroma Consultoria, 54% of Brazilians already use these mobile payment systems.  

In physical retail, technologies such as NFC (acronym in English for Near Field Communication, or, in good Portuguese, the payment by approximation) and the QR Code continue to gain ground. NFC, popularized by digital wallets, turns mobile phones into card machines, while QR Code remains an affordable alternative, especially for low-value transactions (including the Pix) and public transport. Both technologies boost financial inclusion and reduce transactional cost.  

In short, you may not even be familiar with the acronym “NFC” or the term “digital wallet”, for example, but you have most likely used these technologies.  

Another silent protagonist in this transformation of the means of payment is the Open Finance. By allowing the sharing of financial data between authorized institutions, the system enables hyper-personalized experiences, with dynamic limits and conditions and contextualized credit.The direct impact of this is reflected in higher conversion, lower default and consumer satisfaction.  

Put more simply: when, when granting a loan or offering a card, the bank has access, for example, to the debt profile of a particular customer along with the entire system (if it has a credit with institution X or if it financed a vehicle at bank Y), and does not look only at its “quintal”, it is easier to see the possible risks and therefore calibrate the offer.   

Big Techs like Apple, Google and Samsung are also increasingly present in the payments universe. With global infrastructure and native integration in devices, these companies accelerate innovation. However, they still face regulatory barriers and need to adapt to local requirements, such as the LGPD (General Data Protection Law) and Central Bank rules.  

Another model that should gain strength is the Buy Now, Pay Later (BNPL, a kind of fast and simplified digital credit, designed for the online experience). Focused especially on young and unbanked audiences, BNPL combines flexibility and practicality.To be sustainable, however, it requires real-time risk analysis tools that avoid over-indebtedness and promote the responsible use of credit.  

The future also reserves the integration of payments with emerging technologies such as 5G and the Internet of Things (IoT & IOT think about yours smart watch, which in addition to watch and mobile functions, probably incorporates features such as heart rate monitoring and sleep, for example). Cars that pay the toll automatically, refrigerators that place orders alone and smart vending machines are part of a scenario in which payment becomes almost invisible 'incorporated into the user's journey naturally.  

Even cryptocurrencies, despite volatility and lack of clear regulation, are beginning to gain ground.The evolution of stablecoins (cryptocurrencies usually linked to the variation of less volatile assets such as gold, dollar and euro) and integration with digital wallets create more favorable conditions for their use in retail, provided they are accompanied by stable rules and security mechanisms.  

An important theme in the issue of the evolution of means of payment is biometrics, which is presented not only as a security feature, but as part of a more fluid journey (insofar as it imposes fewer steps) and with greater convenience for the user. A good example is that of C&A Pay, of the fashion retail network, which allows to make the payment only using facial biometrics (with prior recognition via mobile application, which, from there, will associate the traces of the face to the customer profile.  

The Brazilian is, by definition, a early adopter of new technologies and it is no exaggeration to imagine that, in a horizon of about five years, this technology is already quite widespread ¡ ̄ AS some reports of specialized consultancies suggest.   

Finally, amid so many advances, security remains a priority.The recent case of fraud involving the Pix io with billionaire losses IO has highlighted the need for robust processes, intelligent monitoring and prevention culture. Institutions need to invest not only in technology, but in training, access control and rapid response channels, including direct communication with the Central Bank for emergency blocks.  

Brazil is experiencing a unique moment of transformation in the means of payment. The combination of technology, regulation and user experience promises a more accessible, competitive and secure ecosystem, placing the country in a positive scenario of advantage of global financial innovation.  

* Joao Santos, CEO of Treeal