Brazil’s Payment Revolution: Pix Set to Dominate E-commerce
Brazil’s online payment system, Pix, is poised to revolutionize the e-commerce landscape, with a projected $30 billion in transactions over the next two years. This staggering growth is attributed to the introduction of a new feature, Pix Automatico, which will enable users to automate recurring bill payments.
A Shift Away from Cash and Cards
Launched in 2020, Pix has rapidly become the preferred payment method for Brazilians, surpassing credit and debit cards and significantly reducing the use of cash. The system currently processes over 2 trillion reais ($338 billion) in transactions per month, making it a dominant force in the country’s payment ecosystem.
The Rise of Pix Automatico
In June, the central bank is set to launch Pix Automatico, a feature designed to simplify the payment of recurring bills such as utilities and streaming services. This innovation is expected to have a significant impact on key online segments, including software as a service and streaming services, which rely heavily on recurring revenues.
A New Era for E-commerce
Ebanx vice president of product, Eduardo de Abreu, believes that Pix Automatico will be a game-changer for e-commerce, particularly for customers who are currently excluded from the market due to lack of access to credit or debit cards. Abreu predicts that most of the growth in the first two years of operation will come from new customers, rather than existing ones.
A Simpler Solution for Vendors
Pix Automatico will also simplify the payment process for vendors, who will only need to partner with one financial company, rather than multiple banks. This streamlined approach is expected to increase efficiency and reduce costs.
Lenders Unfazed
Moody’s Ratings senior analyst, Alexandre Albuquerque, believes that lenders will not be threatened by Pix Automatico, as their revenues are diversified and they offer client benefits such as cashback on credit-card payments.
A Bright Future for Pix
As Pix continues to grow and evolve, its impact on Brazil’s e-commerce sector is likely to be significant. With its ease of use, convenience, and accessibility, Pix is set to become an essential tool for consumers and vendors alike.
Leave a Reply