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Tag: #DigitalPayment

  • PIX: The Payment System That Is Transforming Brazil

    What is PIX?

    PIX is an instant payment system created by the Central Bank of Brazil, launched in November 2020. It allows transfers and payments to be made in real time, 24 hours a day, seven days a week, free of charge for individuals. Central Bank of Brazil

    Exponential Growth

    Since its launch, PIX has seen significant growth. In 2023, nearly 42 billion transactions were made through the system, representing a 75% increase compared to the previous year. Febraban

    Advantages for Users

    PIX offers several advantages for users, such as:

    • Speed: Transactions are carried out in real time.
    • Free of charge: No fees for individuals.
    • Accessibility: Available to all participating banks and individuals with a regular CPF.
    • Security: Uses cutting-edge technology to ensure transaction security.

    PIX Installments: A Revolution in Instant Credit

    One of the most anticipated new features of PIX is PIX Installments, which allows consumers to split purchases into multiple payments directly through the system, without needing a traditional credit card. This functionality expands PIX’s reach to higher-value purchases, making credit access quick and easy, without bureaucracy. PIX Installments is a solution that promises to transform consumption, especially for small and medium-sized businesses, which can offer this option directly to customers at lower costs than credit cards.

    Impact on Commerce

    PIX has proven to be an efficient tool for commerce, especially for small and medium-sized businesses. It reduces costs associated with credit card fees and improves cash flow by allowing merchants to receive payments immediately. The arrival of PIX Installments is expected to increase sales by offering more options and flexibility to consumers.

    Future Perspectives

    The Central Bank of Brazil continues to improve the PIX system with new features, such as “Automatic PIX,” which will allow recurring payments to be made easily, and is also expanding the reach of PIX Installments.

    References

  • PIX: The Revolution That Threatens Card Companies’ Profits and Promotes Financial Freedom

    What is PIX?

    PIX is an instant payment system created by the Central Bank of Brazil, launched in November 2020. It allows real-time transfers and payments, 24/7, free of charge for individuals.

    Threat to Card Corporations

    The business model of major credit card companies, like Visa and Mastercard, relies on charging fees ranging from 1% to 2.5% per transaction. PIX, on the other hand, offers significantly lower fees — about 0.33% for businesses — and is often free for consumers. This difference means substantial savings for merchants and consumers, making PIX an attractive and challenging alternative for traditional card operators.

    How Card Companies’ Dominance Affects People’s Wallets

    The near-monopoly of card companies causes merchants to pass high fees onto consumers, who end up paying more for goods and services. Additionally, banks and card issuers often charge high interest rates on credit use, directly impacting family budgets and personal finances. PIX breaks this cycle by offering a payment method with little or no fees, helping to lower the final cost for consumers.

    Financial Freedom for Countries

    Beyond cost reduction, PIX promotes financial inclusion by allowing unbanked individuals to participate in the digital economy. It facilitates access to essential financial services like bill payments, transfers, and online purchases without relying on traditional financial intermediaries. This strengthens countries’ financial sovereignty, reducing dependence on foreign financial systems and promoting a more self-sustaining economy.

    Reactions from Card Corporations

    The growing popularity of PIX has generated significant reactions among credit card companies. In July 2025, then-US President Donald Trump criticized the system, claiming it harms American companies. This stance reflects concerns over market share loss and decreasing revenues from transaction fees.

    The Future of PIX

    PIX continues to evolve, introducing new features like installment payments, allowing consumers to split purchases into multiple payments directly through the system. This innovation further expands PIX’s reach, making it a powerful tool in transforming the global payment system.

    References