The Creation of PIX
PIX was created by the Central Bank of Brazil to modernize and simplify the country’s payment system. Development began in 2018, and the system was officially launched in November 2020. The initiative aimed to offer a fast, secure solution available 24/7, unlike traditional methods like TED, DOC, and cards.
Who Was the Creator
Although PIX is an initiative of the Central Bank, its development involved various internal technical teams and specialized fintech consultants. The then president of the Central Bank, Roberto Campos Neto, was one of the main supporters and drivers of the project, aiming to transform Brazil’s financial system and encourage digital innovation.
How PIX Works
PIX allows instant transfers and payments at any time of day, processing transactions in seconds. It is accessible through banking apps using PIX keys — such as CPF (tax ID), email, phone number, or a random key — to identify accounts, simplifying daily financial operations.
Revolution in Payment Methods
Before PIX, Brazilians depended on methods like TED and DOC, which only works during business hours and often charges fees. PIX removed these barriers by enabling instant, free transfers for individuals, increasing financial inclusion. Additionally, PIX introduced innovations such as installment payments, contactless payments, and integration with billing systems.
Social and Economic Impact
PIX significantly changed consumer and merchant behavior, facilitating e-commerce, bill payments, and even donations. The system’s speed and convenience encouraged the formalization of small businesses and expanded access to financial services for population segments previously excluded from the traditional banking system.
References
- Central Bank of Brazil. “Pix – Instant Payment System.” Available at: https://www.bcb.gov.br/estabilidadefinanceira/pix
- Valor Econômico. “What is PIX and how it will change the way we pay.” Available at: https://valor.globo.com/financas/noticia/2020/11/16/o-que-e-o-pix-e-como-ele-vai-mudar-o-jeito-de-pagar.ghtml
- G1. “PIX completes one year with over 400 million monthly transactions.” Available at: https://g1.globo.com/economia/noticia/2021/11/16/pix-completa-um-ano-com-mais-de-400-milhoes-de-transacoes-mensais.ghtml
- Folha de S.Paulo. “PIX completes one year with over 400 million monthly transactions.” Available at: https://www1.folha.uol.com.br/mercado/2021/11/pix-completa-um-ano-com-mais-de-400-milhoes-de-transacoes-mensais.shtml
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