What is PIX instant payment?
PIX is a new instant payment system in Brazil. Payment of bills is an integral part of our daily lives. People pay for goods and services every day. From buying food to paying utility bills, we're always spending money! The traditional bank abides by rules and regulations that slow down financial transactions. This system led to delays in business dealings and loss of revenue in some cases. The Brazilian bank authority launched the Instant Payment System, PIX, in Nov. 2020.
The Covid-19 pandemic had the world on lockdown for a long time in 2020. Businesses shut down, and everyone, excluding essential workers, had to work from home. This situation popularized online interactions, including shopping. Before the pandemic, in Brazil, business owners issued invoices as proof of payment. You had to go physically to stores or offices to buy items or pay bills. The Brazil Central Bank innovated PIX to accommodate the new world order.
What payment system is PIX replacing?
Pix is a good alternative for the Boleto system. Brazil has the most extensive online market in Latin America. 38% of the region thrives on eCommerce, and 30% of transactions occur online. With the increase of mobile phone ownership, the economy is shifting towards m-commerce. The primary means of payment in Brazil are Credit cards and the Boleto Bancario.
Since its introduction in 1993, the Boleto is the dominant means of payment in Brazil. It is a ticket that the consumer processes at a registered location. It can be a printed ticket or virtual one through the mobile app. There is a Boleto service provider at almost every corner in Brazil. Many people are wary of giving out their credit card details, so they prefer to use the Boleto. It supports paying in installments. The seller holds the goods/services until reimbursement is complete.
The Boleto is problematic for users. They have to initialize payment, and this interrupts impulse buying because of the delay in payment confirmation. The processing takes at least a day; this can cause expiration because it has due dates. There can be an error in filling in the details in the ticket.
Service providers offer discounts to consumers who use Boleto. This discount is because there's no charge-back risk, and the payment is upfront.
With IPS, you no longer need to wait for payment confirmation as transactions are now fast and on the go. You need a PIX code and a smartphone to register. This mobile system fits because Brazil is the fifth-largest internet and mobile phone economy worldwide! It works all the time, including the weekend and holidays, and is accessible to all. PIX is an improvement on the existent banking system. It is without the strict payment rules and excessive detail requirements. Now Brazilians can enjoy making payments at their convenience!
How do you pay for PIX? How does it work?
PIX is an improvement on the existent bank structure. The Central Bank advised that all banks upgrade to the new PIX method. You can now use it make a digital transfer in real-time with an e-wallet. PIX improves user experience and reduces errors. Making bank transfers with Credit cards or Boleto in Brazil requires a lot of details to be entered. A slight mistake results in payment rejection by the bank which is non-reversable. PIX replaces all details with a single code!
You enable the app by filling in information on the system. On a checkout page, you select the PIX option.
The PIX Key
(Multiple Keys for the Same Account NOT A Key for Multiple Accounts)
The PIX key is used to link the user’s information to the bank transfer details. You can either scan a QR Codes, or enter an address key or use a proximity payment - NFC technology. You can scan a QR code that is either static, dynamic, or both. When you don't include the transaction amount, it's fixed. Otherwise, it's changing.
The user links the new B2BPay account to their address key. You make transactions based on the information you've listed.
The four key systems available to users in Brazil are;
- Natural Persons Register (CPF)/National Registry of Legal Entities (CNPJ)
- E-mail Address
- Mobile phone number and
- System generated unique key (get a PIX without revealing personal data)
The customer generates a unique PIX key that is a link for their information. You can have up to 5 keys per individual account and 20 keys per company account. One key can't open an unlinked account. Each one must have its own key. For example, you can use Natural Persons Register (CPF) at Bank A for your savings account, then your E-mail address for your payment account. You can cancel the transaction before you confirm payment or ask for a refund in case of a mistake. You're issued a receipt with details of the trade for future reference.
What are the benefits of using PIX?
Here’s why you should use B2BPay PIX payment system;
- Worldwide Payment: You can make transactions from all around the world. It is a free service that widens your market reach. You register online in Brazil and can collect payment from over 200 countries of the world. It is fast and completes transactions fast. The speed of operation increases your revenue. This increase is because you make more payments than the traditional bank would allow. Experts project that in a few years, PIX would become the preferred system for P2P transfers.
- Multi-currency permissive: Non-fungible tokens and cryptocurrency changed the trajectory of the finance market. People can now make payments with more than paper money. The world is embracing paperless transactions to preserve the environment. B2BPay platform supports multi-currency exchanges using one European IBAN. It transcends borders and boosts the online economy. You can pay with over 30 currencies of 170+ countries!
- Complete digital transactions: In 2020, the Brazil Central Bank launched PIX. This innovation was to solve the problem of delayed payment confirmations. You can make transactions 24/7. B2BPay is a comprehensive digital platform that also covers account management. There's no need to visit a physical bank to make inquiries. It has an in-app assistant that answers all your queries.
- User-friendly dashboard: B2BPay is easy to use for everyone. It doesn't matter if you're ignorant of technology use. The B2BPay mobile app is straightforward, cheap, transparent, and secure. You can set up your account at no cost, and it has an authentication process designed for protection. You have to follow the prompts on the home page, and your account sets up instantly!
- Guaranteed Security: All information is secure under the General Protection Law and Bank Secrecy Law. You don't have to worry about your credit cards details leaking. PIX is available to the unbanked population. There are anti-fraud barriers in place. These are transfer limits and a 1-hour delay for suspicious transactions.
Check your PIX key here.
Who can use PIX?
Our online banking services are available to everyone. The goal of PIX was to foster financial inclusion, so it's open to all industries.
- SMEs: We encourage entrepreneurship; that's why we cater to start-ups. More than half of our customers are newly incorporated businesses. Our goal is to help you achieve your goals and grow with you into a global phenomenon.
- Non-residents: We also cater to non-residents and offshore businesses. Foreign directors, shareholders, and companies are welcome to use our services. On our platform, you can convert your money at a low rate and preserve the value. B2BPay collects direct payment on behalf of suppliers transacting with European customers.
- Fintech companies: The payment regulations in Fintech companies discouraged traditFional banks. Our bank bridges the gap for you by providing a starter pack for testing your business model. We reduce the risk of the effect of a volatile market for you. B2BPay gives you an edge over your competitors. Our services surpass that of the traditional bank so, why not sign up now?!
- E-commerce: The online market offers many opportunities. You can take advantage of them by using B2BPay. You can access direct payment from many countries without high conversion fees. Our dashboard is transparent so that you can track all expenses.
What is B2BPay?
B2BPay provides online banking services. We offer instant payment and electronic money transfer across institutions. We realized many people avoid saving in the traditional bank because of the high charges attached. It's inconvenient for some people to have many bank accounts on different platforms. Some face difficulties opening accounts as non-residents. A large part of the Brazilian population earns little compared to bank charges. B2BPay is here to solve your problems! Read our guide on how to open a bank account in Brazil.
PIX is an exclusive platform for the Brazilian population. It promotes financial inclusion for the unbanked citizens of the state. You don't have to deal with poor customer service because we're fully digital. We offer the privilege of making many transactions on a single platform. There's no issue of hidden fees, losing your profits to bank charges, or delayed payment clearance. B2BPay is an excellent platform for trading cryptocurrency. We have an integrated interface for conversion and transfers. We also offer a premium price-quality ratio for international businesses.
B2BPay provides innovative online banking services with PIX in Brazil
Relative to the use of Credit Cards and Boleto, PIX reduced over 90% of online fraud rate. In 6 months, PIX established its presence in Brazil. It is now the dominant means of payment for online processors. Some vendors make PIX their default option while for others, it’s the only option! There’s no doubt that PIX is here to stay as a primary means of payment in Brazil!
You can start your signup process here.