What You Should Know About PIX Brazilian Real-Time Payment System

What Is PIX?

PIX is an instant payment system launched by the Brazilian Central Bank to facilitate real-time payments. It is an initiative to democratize the entire financial system with 24/7 availability to make payments. This system will allow immediate money transfers and payments within 10 seconds. This method of payment is introduced owing to the digitalization of e-commerce and the high demand for quick payment methods.

The central bank has kept minimum prices for money transfers and payments through PIX to facilitate users. It is believed that by 2030, PIX will be used for about 22% of the electronic payments in Brazil. Online payment will diminish the use of banking. It will happen due to the trust issues, fees that you have to pay for opening a bank account, and credit and debit cards are not a very popular option among people when they can have a robust online system to make payments. With the online system, you have the reliability of your payment with ease of making payments from anywhere.

What Are Instant Payments?

Instant payments are online money transfers between different institutions. You can use them anytime to make a money transfer with confirmation of a quick transfer. You will have many benefits by using the instant payment methods as they are faster and more reliable, and the transaction happens in real-time.

How To Make Payments Via PIX?

There are two ways you can use to make money transfers with PIX:

1. Address PIX Keys

The address keys allow you to identify the user’s account. There are 4 types of address keys that customers can use, and these include the following:

CPF/CNPJ
Email address
Mobile number

2. Bank/eWallet Information

You can use the bank and eWallet information to send payments via PIX.

How Can You Get An Address Key?

Financial and payment institutions can help you to get an address key. You’ll have to confirm the key ownership by providing the code that you’ll receive via email or SMS and by linking the key to your accounts.

How Can You Send Payments With PIX?

Sending payments with PIX is quite easy. You can send payments by using the address key of the receiver. You can enter the address key of the receiver by:

1. Scanning a QR code

2. Manually inserting the receiver’s account information

What’s The Minimum And Maximum Limit Of Payments Via PIX?

You can send any amount through PIX. You don’t have a minimum limit to send money. However, you can set a maximum payment limit to avoid risks.

How Much PIX Will Cost You For Making Payment?

Well, it’s common that you have to pay a payment cost to different online payment processing methods, but PIX will allow you to make payments free of cost. However, legal entities will be charged a fee. However, the fee will be reasonable in comparison to the amount charged today for TED transactions.

Benefits Of Using PIX

You can enjoy the following perks by using PIX in comparison to the traditional payment methods in Brazil:

It will provide you an immediate confirmation of the money transfer.
You’ll have to pay lower processing costs.
You’ll be able to get a faster settlement.
You can use it 24/7 for payments, unlike traditional payment methods.
It will make your payment experience smooth.

PIX has started operation from 16th November. All Brazilians can now use as an additional payment method alongside TEDs and DOCs. It is available to users in their current payment options such as internet banking mobile apps.