HomePixContactless Payments with PIX Are Here

Contactless Payments with PIX Are Here

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I’ve got great news for all PIX fans! PIX contactless payments will completely change the way we make PIX payments to brick-and-mortar establishments. I wrote about how PIX’s integration with digital wallets like Google Pay, Apple Pay, and Samsung Pay would be a game changer just three months ago. So let’s have a look at some statistics before getting into the specifics.

According to a survey conducted in April 2023 by Opinion Box and Mobile Time, at least 10% of Brazilians have given up using wallets and just use their phones for everyday purchases. According to the same survey, 26% of smartphone users would rather make payments with their mobile devices. To put things into perspective, 36% of people between the ages of 16 and 29 made payments with their phones last year, up a staggering 270% from just 17% in 2017.

The real deal is this: PIX for contactless payments has the potential to substantially reduce the need for debit cards. Imagine shoppers not having to switch between apps and scanning QR codes anymore; this will likely mean higher conversion rates. Right now, there are at least six steps involved in making a PIX payment: accessing your bank app, going to the payment section, scanning a QR code, and verifying the transaction. However, using contactless PIX will make it as simple as tapping your phone.

By February 28 of next year, the Central Bank of Brazil (Bacen) plans to implement this feature. By utilizing Open Banking technology, this new service will guarantee secure payments and smooth transactions.

The implementation roadmap is as follows:

1 – Bacen will publish the regulations governing the implementation of PIX contactless by July 31, 2024.
2 – It goes into test mode by November 14, 2024.
3 – Lastly, it will be fully released by February 28, 2025.

PIX Contactless will function with Google, Apple, and Samsung Pay in the same way as credit cards. You’re set to go once you register PIX on your mobile wallet.

Debit card transactions are probably going to suffer, especially among the 16–29 age range, even though PIX may not take over credit card transactions just yet given that they serve distinct markets.

The secret sauce, though, is that online businesses will also greatly benefit from this next PIX update. The payment journey for online purchases will change significantly because shoppers won’t need to leave the checkout page to complete their transactions. The Central Bank hasn’t yet released a comprehensive flow, but conventional credit card transactions will surely be under pressure.

Although account-to-account (A2A) payments are not new, Brazil has shown the huge benefits of integrating a whole ecosystem to facilitate faster and less expensive transactions.

Alexandre Pereira
Driving Payment Success with Banks, Acquirers and Card Schemes 🏦💳 | Payments Strategy ♜💡 | Global Cross-Border Payments Expert 🌎 | Payment Partnerships 🤝 | Payment Consulting 📋🎯

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