PIX, Brazil’s instant payment system, has revolutionized the way Brazilians carry out financial transactions. Since its launch in November 2020, it has proven to be a fast, secure, and convenient alternative to traditional payment methods such as bank transfers and credit card payments. However, PIX will not be limited to national borders – and some Argentine payment companies have already made the country take the first steps in this evolution.
The Brazilian PIX: A Brief Context
To understand PIX International, it is essential to understand how the PIX system works within Brazil. PIX is an instant payment system developed and operated by the Central Bank of Brazil (BCB). It allows users to transfer money to each other in real-time, 24/7, using only basic information such as mobile numbers, social security numbers, CNPJ, or random keys. This has eliminated the need for intermediaries, such as banks, and significantly reduced transaction costs.
The acceptance of PIX within Brazil has been remarkable. Since its launch, millions of Brazilians have joined the system, and businesses of all sizes have started to offer it as a payment option to their customers. However, this popularity and efficiency have caused many to see even greater potential for PIX beyond national borders.
PIX International: Global Extension in Sight
PIX International continues to draw the attention of many countries that are learning about the processes of the modality and studying implementations. This is a natural extension of the success of the Brazilian instant payment system. It should allow Brazilians to send and receive money to and from abroad quickly, safely, and cost-effectively. Through PIX International, users will be able to make international transfers without the need for expensive and time-consuming intermediaries, such as banks and traditional money transfer services.
Benefits of PIX International
Speed: International transfers via PIX would be processed in a matter of seconds, compared to the business days that may be required through traditional methods. This is especially beneficial for business transactions and urgent payments.
Savings: International PIX tends to be more cost-effective than traditional international transfer methods, as it can reduce fees and commissions associated with banking intermediaries.
Simplicity: Using PIX keys to perform international transfers would simplify the process. Users would only need the recipient’s basic information, making the international payment experience more user-friendly.
Adherence to international standards: PIX Internacional follows international security and compliance standards, ensuring that transfers are compliant with global regulations.
Challenges and Implementation
Despite the obvious benefits, the future implementation of PIX Internacional is not without its challenges. Interoperability with foreign payment systems, regulatory issues, and bilateral cooperation agreements are some of the hurdles to be overcome. In addition, awareness and adherence by global users are key to the success of PIX International.
PIX in Argentina
The arrival of PIX in Argentina happened in an improvised way. A BBC report in July showed that an Argentine saleswoman from Puerto Iguazú even asked a friend with an account in Brazil for help to receive money from a customer, and in other places in the city, merchants use PIX through accounts of Brazilian family members and partners.
As the processing of PIX and the conversion of pesos or dollars into reais take place in Brazil, the Brazilian customer pays an IOF fee of 0.38%, which is levied on foreign exchange operations in the country. However, since June 2023, there are companies offering solutions for Argentine stores to be able to make the payment method available. One of them is KamiPay, an Argentine digital payments fintech that has launched a platform for this purpose.
The modality works in a similar way to Brazil: the customer scans, with his cell phone, a QR Code made available by an application, and the shopkeeper, in turn, receives the payment on the spot. The amount is debited in reais from the Brazilian customer’s account, while the Argentine merchant receives it in pesos or digital dollars.
The Future of PIX International
PIX International has the potential to become a significant alternative to traditional methods of transferring money across borders. As more countries adopt similar instant payment systems and collaborate to facilitate cross-border transfers, PIX International could become an integral part of the global financial landscape.
To boost the adoption of PIX International, it is important for Brazil to establish bilateral and multilateral agreements with other countries, promoting trust and cooperation at the international level. Additionally, educating users about the benefits of PIX Internacional and the simplicity of its use will play a key role in its global acceptance.
In Brazil, Topaz is part of this evolution, allowing several institutions to offer their customers the ease of PIX thanks to Topaz’s Payment solutions , which combine technology and availability while scaling businesses with more agility and security.