The Brazilian instant payment system Pix may start operating globally in the foreseeable future.
The mentioned platform has rapidly become popular in the domestic financial services market. The central bank of Brazil launched the specified instant payment system at the end of 2020. Since then, more than 160 million people have become users of the financial services platform. Currently, the issue of scaling Pix’s activities outside the domestic market is being considered.
The Group of 20 politicians are meeting in Sao Paulo this week. Currently, the central bank of Brazil is discussing options to reduce the cost and speed up cross-border payment transactions. As part of the relevant decision, the financial regulator is considering the possibility of scaling up the operation of the above-mentioned free money transfer system.
Currently, the Pix offer is the preferred payment method in the Brazilian financial services market. The solutions of this platform surpass credit and debit cards in terms of consumer interest. Interest in Pix offers is currently being recorded in other Latin American, African, and European countries. Moreover, now outside Brazil, fintech players are eager to unravel the secret of Pix’s impressive popularity.
The central bank of Brazil is currently considering the possibility of concluding agreements to connect the instant payment system to platforms around the world. Successful implementation of this intention would allow Pix to become a global player. It is already known that Italy has shown interest in the instant payment transaction system, demonstrating its readiness for a bilateral agreement with the Brazilian financial regulator.
Mayara Yano, one of the Pix analysts, said during a conversation with media representatives that many jurisdictions were interested in the infrastructure, design, and success of the financial services platform. This system provides customers with the ability to instantly transfer money to a bank account or digital wallet. The relevant services are available around the clock and without fees.
The Pixel’s app became ubiquitous in Brazil within a few months. The rapid introduction of this digital product has caused even its creators to be surprised.
Last year, the Bank of International Settlements published a case study on instant payment systems. Pix is one of the platforms that the lender intends to connect through its Nexus project.
BIS data indicates that Nexus is currently being tested in five Asian countries. This platform is designed to facilitate instant cross-border transactions. The Brazilian central bank believes that this is a promising path for Pix to reach a global scale that goes beyond bilateral agreements. This was stated by Mayara Yano.
Pix already operates in countries visited by a large number of Brazilian travelers. In Argentina and Uruguay, some fintech companies and regional banks provide Brazilians with the opportunity to pay bills at restaurants and hotels through the specified platform.
Brazilian tourists transfer payments in reais using a QR code linked to a digital wallet or payment processor. In this case, the business instantly receives money in the national currency, US dollars, or stablecoins.
The head of the central bank of Brazil, Roberto Campos Neto, says that advanced technological solutions will help create a more efficient and inclusive financial system in the country, where about 30% of the population did not have bank accounts before the launch of the Pix platform. Since the rollout of the instant payment system, more than 70 million customers have made their first digital transactions, and now only 16% of them do not have a bank account.
Pix has played a pivotal role in expanding the access of millions of Brazilians to financial services. This was stated by Roberto Campos Neto during a speech opening Brazil’s presidency of the G-20 in December.
As we have reported earlier, Brazil Stark Bank Doubles Profit.
