Credit score, cross-border transactions, direct debit


Final yr, Pix grew by leaps and bounds in Brazil, additional disrupting Latin America’s largest financial system and paving the way in which for a brand new wave of digitization.

In 2022, the moment cost system launched by the Central Financial institution continued on its upward development. Transactions grew constantly within the second yr of its launch. By 2023, it had virtually 135 million customers in a rustic with a inhabitants of 210 million. On the similar time, transactions now surpass the trillion reais mark per thirty days, or near $200 billion.

Its swift progress has been very important to the additional digitization of Brazil. It has additionally impressed many as a fruitful case for disruption in rising markets.

This begs the query. How far can Pix go?

Pix’s disruption exacted a heavy toll on the cost enterprise of conventional banks. Most needed to give away a few of these charges, though the sharp digitization is paying off.

Nonetheless, Pix is a constantly-evolving product, with new options being recurringly rolled out.

Pix is consistently evolving

Bank card companies might bear the brunt this yr because the central financial institution is closing in on Pix Garantido. It’s a function that might resemble a conventional bank card mannequin.

Roberto Campos Neto headshot
Roberto Campos Neto, president of the Brazilian Central Financial institution.

Nonetheless, underneath improvement, it was just lately introduced by finance minister Fernando Haddad. He mentioned Pix’s credit score performance might be launched this 2023 round mid-year.

In response to specialists, this might have a big influence on the credit score market in Brazil.

“When Pix Garantido is launched, it may have a higher impact on the mortgage market,” Paulo Oliveira Andreoli, a fintech advisor, instructed Fintech Nexus. Nonetheless, he mentioned that regardless of Haddad’s commentary, the function nonetheless doesn’t have a date for 2023.

At the moment, Pix already permits customers to preschedule funds shortly. The thought behind Garantido is that the monetary establishment will assure the transaction if the consumer doesn’t have the mandatory stability within the account on the convened date.

Direct debit: Pix Automatico

“PIX functionalities in 2023 pave the way in which for the normal financial system to get nearer and nearer to the digital world,” Marcela Lachowski, Company Partnerships Supervisor at Plug and Play Tech Middle in Brazil, instructed Fintech Nexus.

“This creates a related marketplace for current wallets within the ecosystem. In itself, programmed PIX generally is a nice substitute for financial institution slip funds.”

One of many different new options anticipated for 2023 is Pix Automatico. This can work equally to direct debit, facilitating recurring funds comparable to public companies, subscription companies, and college or health club charges.

Nonetheless, opposite to direct debit, Oliveira Andreoli mentioned that the corporate accumulating funds doesn’t have to enter an settlement with banks. This might have important implications for small and medium-sized companies in Brazil.

“Corporations that had difficulties or couldn’t afford the prices of those financial institution agreements will be capable of use Pix Automatico in order that their prospects could make recurring funds,” he mentioned. “It will also be utilized by colleges, gyms, and different subscription companies to obtain funds simply.”

Enhancing Pix safety in 2023 to stave off fraud

Regardless of Pix’s large contribution to digitization, the truth is that it has additionally develop into a fertile floor for fraudsters. Scams associated to Pix have surged since its launch. Criminals took benefit of its simplicity and huge availability to conduct fraud.

Estimates by the banks level out that scams could cause losses of two.5 billion (or $500 million) in 2022 towards the Brazilian monetary system, of which 70% would originate from Pix transactions. 


To discourage crime, the central financial institution took some actions. It has lowered limits for Pix transactions, particularly throughout nighttime. Withdrawals on Pix Saque (cashback) had been additionally lowered earlier this 2023.

Altogether, specialists imagine the central financial institution will enhance general safety this yr. “We must always anticipate enhancements in Pix’s fraud prevention mechanisms,” Oliveira Andreoli mentioned. Additionally, streamlining the return mechanism of funds within the occasion of a rip-off.

Is Pix Worldwide on its means?

Because of its huge success, Roberto Campos Neto, president of the central financial institution, mentioned final yr its protocols can be made out there to different regulators to copy.

On February 27, he mentioned that Brazil was already negotiating with 4 different international locations in Latin America. These included Colombia, Chile, Ecuador, and Uruguay. The objective of Pix Worldwide goes far past the concept of replicating the system. It might additionally develop into the bedrock for facilitating cross-border transactions.

“Some international locations in Latin America are already discussing with us how they’re going to undertake Pix,” he mentioned in an occasion, native media reported. “We expect it will function as a block. You journey between international locations and pay mechanically. Thus, the problem of cross-border cost is solved.”

  • David Feliba

    David Feliba is a Latin American monetary and enterprise journalist. He experiences fintech, banking, and financial information for world information organizations. His work contains interviews with senior executives, cupboard members, and policymakers throughout the area.

    Over the previous years, David has reported from a number of places within the Americas. His options have been printed in main world media comparable to The Washington Submit, The Monetary Instances, Americas Quarterly and S&P International information. He lives in Buenos Aires.


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