In Brazil and across Latin America, alternative payment methods (APMs) and specifically account-to-account (A2A) payments are reshaping the financial landscape. With their convenience, speed, and accessibility, these methods are essential for businesses expanding into the region. Among them, Pix, Brazil’s real-time payment system, has emerged as a transformative platform.
Launched by the Central Bank of Brazil in 2020, Pix has rapidly become the country’s most widely used digital payment method, revolutionizing how consumers and businesses transact.
During Black Friday 2024, the volume of Pix transactions surged by 120.7% compared to the previous year, with a record 239.9 million transactions processed in a single day. Leading studies suggest that Pix could overtake credit cards as the most popular ecommerce payment method in Brazil by 2025.
For merchants looking to succeed in Brazil, adopting Pix payments is essential. Offering local payment methods like Pix can boost revenue, improve customer satisfaction, and position your business for long-term success in one of the world’s fastest-growing markets. Furthermore, Pix offers a cost advantage over traditional card payments. By reducing reliance on intermediaries, processing fees are lower, making it a cost-effective choice for businesses expanding in Brazil.
What is Pix payments?
Pix is a real-time payment system developed and operated by the Central Bank of Brazil to modernize and simplify payments. Launched in November 2020, Pix has quickly transformed payments, with 74% of Brazilians adopting it by January 2022.
Pix enables instant, 24/7 transfers, keeping costs low and providing a smooth payment experience for customers.
In ecommerce, Pix payments are typically completed in one of the following ways:
- QR codes: Customers scan a static or dynamic QR code (dynamic QR codes are preferred for easier reconciliation). Alternatively, they can copy and paste the QR code string directly into their bank app
- Pix keys: Customers enter a Pix key associated with the merchant, such as a phone number, email address, CPF/CNPJ, or a random key
- Manual transfers: Customers manually enter the bank name, branch number, and account number to complete the payment
All customers need is an account with a participating bank or payment institution, making Pix a practical solution for businesses looking to simplify the checkout experience and reduce payment costs.
Benefits of Pix payments
One of Pix’s standout features is instant settlement, enabling faster, direct transfers between merchants and customers. Unlike traditional card schemes in Brazil, where settlement can take up to 30 days, Pix payments are cleared in real-time, 24/7. This speed improves cash flow, reduces reliance on credit, and enhances liquidity management for businesses of all sizes.
Merchants can also benefit from lower acceptance costs, as Pix eliminates intermediaries like acquirers and issuers. With fewer parties involved, processing fees are significantly reduced compared to card transactions.
Security is a key advantage of Pix. It adheres to Brazil’s mandatory two-factor authentication (2FA) standards, ensuring secure transactions and building user confidence. According to the Central Bank of Brazil, all Pix proceedings, including the management of Pix keys, can only be initiated within a secure environment on the user’s institutional access area. This is protected by a password or other security features integrated into the mobile phone, such as biometric or facial recognition and token-based authentication.
Pix transactions are fully traceable, allowing the identification of accounts involved in fraud, scams, or criminal activity. This traceability enables more effective action by the police and judicial authorities, offering greater security compared to traditional ATM withdrawals.
The information exchanged during Pix transactions is encrypted within the National Financial System Network (RSFN), a network isolated from the internet. This network handles all transactions within the Brazilian Payment System (BPS). All Pix participants must issue security certificates to transact through the RSFN, and all transaction information and personal data linked to Pix keys are stored in encrypted form with the BCB’s internal systems.
By confining transactions to this secure channel, Pix not only meets Brazil’s strict regulations but also aligns with global trends in payment authentication. This focus on secure, user-friendly experiences reduces fraud risks and boosts adoption.
Pix offers a range of benefits that make it a standout payment option:
- Faster settlement: Instant, real-time payments improve liquidity and cash flow
- Lower costs: Fewer intermediaries reduce acceptance fees for merchants
- Enhanced security: Transactions are authenticated and encrypted via secure user accounts
- Improved experience: Instant transfers create a friction-free process for customers
- Financial inclusion: Pix expands digital access for underbanked populations
- Market efficiency: Simplified payments foster innovation in financial services
How Pix payments work
Pix eliminates intermediaries, reducing costs while ensuring efficient and secure transactions.
Setting up Pix is straightforward. Any person or business that has an account held by a pix participant (financial or payment institution) can make or receive Pix payments. Businesses and individuals can register a Pix key, enabling payments via QR codes or by entering the recipient’s Pix key in a Pix payment app like Nubank or Banco do Brasil.
Notably, Pix allows transfers to be made without registering a Pix key by using traditional bank account details. However, generating QR codes for payments requires a Pix key linked to the merchant’s account. Its real-time functionality improves cash flow by ensuring immediate fund availability, and its wide accessibility supports unbanked users who rely on digital wallets or similar services from participating institutions.
Which payment methods are used in Brazil?
Brazil’s payment landscape offers a blend of traditional and modern methods, catering to its diverse population. Understanding these preferences is important for businesses seeking to provide a connected and uninterrupted payment experience for customers.
Credit cards
Credit cards remain a dominant force, particularly for their flexibility in allowing consumers to pay in installments. In 2023, credit cards accounted for 36% of in-person spending in Brazil, making them the leading payment method at the point of sale (POS). However, projections show that online credit card spending in Brazil may decline as Pix and other A2A methods gain further market share.
Pix
Pix has been a disruptor since its launch in November 2020. It quickly became Brazil’s most popular payment method by transaction volume, with merchants drawn to its lower costs and instant settlement, which improves cash flow. Many merchants even offer consumers discounts of 5% to 20% to encourage Pix adoption.
By 2028, instant payments are expected to account for approximately 41% of all payments in Brazil.
Boleto Bancário
Boleto Bancário is a traditional method that generates barcoded slips that consumers can pay at banks or convenience stores. While its usage is declining with the rise of digital payment methods, it remains a trusted option, particularly among unbanked populations and those who prefer cash-based transactions.
Digital wallets and mobile payment solutions
Platforms like PayPal, MercadoPago, and PicPay are gaining traction, offering enhanced security and quick transactions. Mobile payment options like Apple Pay and Google Pay are also becoming increasingly popular. A2A payments are classified under digital wallets at POS, reflecting their growing integration into app-based services.
What are real-time payments, and how does Pix enable them?
Real-time payments (RTPs) transfer funds instantly between accounts, bypassing traditional credit card networks. RTPs provide significant benefits, such as improved liquidity and reduced payment delays for both consumers and businesses.
Pix’s accessibility and integration with banking and payment apps ensure it supports diverse users, including those with prepaid accounts or digital wallets. Additionally, Brazil’s mandatory 2FA secure transactions, aligning with global payment authentication standards.
Where can you use Pix payments?
Pix is accepted worldwide, from major retailers to small businesses. Emerging initiatives like “International Pix” are extending its use beyond Brazil, enabling Brazilian tourists to pay abroad. This presents opportunities for global merchants to cater to Brazilian customers. Some countries, including Argentina and Uruguay, are even exploring cross-border payment options that integrate Pix.
Is Pix only for Brazilians?
No. Pix’s accessibility through diverse financial institutions and digital wallets means that anyone with an account in Brazil can use it, regardless of nationality.
Furthermore, in addition to its current accessibility, the Central Bank of Brazil plans to launch Pix Automático in June 2026, enabling users to set up automated recurring payments for bills and services. This enhancement will give both local and international businesses new ways to simplify transactions, making Pix an even more versatile payment option.