An expert explains how Pix by Proximity will benefit people and businesses

While Pix has had no trouble catching on with Brazilians, adoption of this instant payment method is expected to grow even more as new features planned by the Central Bank come into effect. The next new feature, which comes into effect on February 28th, is Pix by Proximity (or Pix by Biometrics). 

It allows consumers to make payments by tapping an NFC-enabled cell phone against the terminals, without needing to open the bank's app. To do so, all they need is a previously registered Pix key in a digital wallet. For online purchases, payment is now completed within the online store itself, without having to access the financial institution's app. In both cases, the payment process becomes much simpler and more fluid.

The feature has been operational since November in tests involving some banks and payment transaction initiators (ITPs). With its official implementation, although the inclusion of Contactless Pix in bank apps and wallets will not become mandatory, players that do not offer this feature to their customers will fall behind the competition.

But there's no reason for that, as Pix by Contactless brings countless benefits to consumers, merchants, and businesses alike. Bruno Loiola, co-founder of Pluggy, a fintech that offers payment and financial data solutions for businesses through Open Finance, points out that the impact of the new feature is most visible in retail, but it goes far beyond, potentially impacting even public transportation. Below are some positive impacts of the new Pix feature.

Greater agility in face-to-face transactions. In physical retail, Contactless Pix will reduce payment time by eliminating the need to scan QR Codes or enter Pix keys. "Currently, there's a lot of friction when paying with Pix: consumers need to open their phone, access the bank app, enter their credentials, and locate the Pix area to complete the transaction. With the new functionality, payments will be made directly to virtual wallets by simply tapping their phone. More and more people are expected to adopt this method, improving the shopping experience," predicts Loiola.

More conversion in online transactions. Pix payments are already common in the online environment. But now they're gaining features that allow you to increase conversions and eliminate some intermediaries and risks associated with other payment methods like credit cards or boletos. Just as some e-commerce sites offer one-click payment options using credit cards, it will be possible to do the same with Pix. By securely storing the Pix key in a virtual wallet or even within their favorite store, consumers can authorize an online transaction simply by confirming their biometrics on their cell phone. 

More security for consumers and businesses. This feature will provide greater protection against fraud, 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 have greater peace of mind when making transactions.

Another security advantage is that consumers can view the amount to be debited on their phones before approving the transaction. With current contactless payments, the amount is only displayed on card terminals, which can also be subject to fraud. 

Ease of use for companies in managing receipts. For businesses, especially in the retail and services sectors, Pix Contactless will simplify financial reconciliation and reduce costs compared to other payment methods, such as card terminals and bank slips. "Not to mention that, with instant transactions, payment is received immediately. This can result in a higher profit margin and reduced dependence on financial intermediaries," adds the Pluggy executive.

Expansion of the use of Pix in transportation and services. The new functionality will allow public transportation, such as buses and subways, to adopt Pix even more conveniently, as a direct alternative to electronic tickets and transportation cards. Services such as tolls and parking can also be paid for more seamlessly and seamlessly.