Installment Pix (Pix Parcelado) is a feature offered by banks and fintechs that combines instant payments with a credit option, allowing customers to pay for their purchases in installments via Pix, Brazil’s popular instant payment method used by 93% of the adult population.
The rules for Installment Pix vary depending on the financial institution—such as the number of installments allowed and interest rates—but Brazil’s Central Bank is working to standardize and regulate this payment method to ensure transparency, protect consumers, and promote fair practices across all financial institutions.
In this article, you will learn what Installment Pix is and how it works, and why it matters for your business strategy in Brazil.
What Is Installment Pix (Pix Parcelado)?
Installment Pix (Pix Parcelado) is a payment method that allows consumers to split their purchases made through Pix into installments. In practice, it works like a credit line offered to the end customer: rules around interest rates, limits, and the number of installments are set by the customer’s financial institution based on a risk assessment.
To give some context, Pix is Brazil’s instant payment system, launched by the Central Bank in 2020. It allows individuals and businesses to transfer money and make payments in seconds, 24/7, using only an email, phone number, or QR code. Pix has become widely adopted across Brazil due to its speed, convenience, and low cost. Installment Pix builds on this familiar and trusted payment method, adding the option for customers to pay over time while merchants still receive full payment upfront.
For merchants, this comes with an array of benefits:
- Full upfront payment: You receive the total amount immediately, just like a regular Pix transaction.
- Faster liquidity: Funds are received faster than with traditional credit card payments, improving cash flow for the merchant.
- No credit risk: The bank or fintech providing the credit assumes the risk and collects installments from the customer.
- Easy integration: The installment process happens entirely within the customer’s banking app, so no changes are needed for your checkout or back-office systems.
While Installment Pix is a feature that has been offered by individual banks and fintechs for some time, Brazil’s Central Bank is currently working to regulate it, with a goal of standardizing the user experience and operational procedures. The guidelines will cover everything from signing up for credit to making installment payments, ensuring a consistent, transparent, and reliable process for both merchants and customers.
How Does Installment Pix Work?
Installment Pix offers the same familiar experience as a regular Pix payment, with one key difference: before confirming the payment in their banking app, customers can choose to split the total amount into installments.
Here is how the process works step by step.
1. Customer Chooses Pix at Checkout
At checkout, the customer selects Pix as the payment method.
The store then generates a QR code or offers the option to copy and paste the Pix code—just like in any regular instant Pix transaction.
2. Customer Selects Installment Option in Their Banking App
After selecting Pix at checkout, the customer can choose to pay in installments directly through their bank or fintech app. If the institution offers this option, the customer sees an installment offer that includes details such as the number of payments and the total amount.
They can then decide whether to accept the installment terms and confirm the transaction. If they choose not to, they can still complete the purchase as a regular one-time Pix payment.
Credit limits and eligibility are managed by the financial institution, which conducts its own risk assessment.
3. Merchant Receives Full Payment Upfront
Once the transaction is confirmed, the merchant receives the full amount and reconciles it as a standard Pix payment—no extra steps required in the back office.
The customer then holds a credit agreement with their bank, which charges the installments on the agreed dates. If the customer does not have sufficient funds or credit, that issue is handled directly between the bank and the customer, with no impact on the merchant’s receivables.
A Practical Example of Installment Pix in Action
To make it easier to understand how Installment Pix works, let’s walk through an example:
Imagine a customer buying a laptop worth R$6,000 (around USD 1,000) from an online store.
- At checkout, they choose Pix as the payment method. In their banking app, they are offered the option to split the payment into installments.
- The bank proposes 10 installments with interest, showing the amount of each payment, the total cost compared to a one-time Pix payment, and a request for confirmation.
- The customer accepts the offer, authorizes the payment, and the full R$6,000 is instantly transferred to the merchant via Pix.
- The credit risk remains entirely with the customer’s bank, which will charge the installments directly from the customer’s account or pre-approved credit limit.
Details of how Installment Pix operates may change once the Central Bank finalizes its regulations. For now, official information about the final model has not yet been released.
Installment Pix vs. Credit Cards: What Is the Difference?
Both payment methods allow customers to spread payments over time and rely on credit approval and limits. However, there are some key differences.
- Installment Pix: The installment plan is offered by the customer’s bank within their app, while the merchant receives the full payment upfront, just like a standard Pix transaction.
- Credit Card: The installment plan is determined by the merchant at checkout, with different rules for receiving funds and associated fees.
The table below summarizes the main differences between these two payment methods:
Learn more: Understanding Pix: A Complete Guide to Brazil’s Instant Payment System
Merchant Impacts and Key Considerations for Installment Pix
Merchants considering Installment Pix should weigh both the benefits and potential considerations.
On the benefits side, Installment Pix requires no extra setup—merchants simply accept Pix at checkout, while the customer chooses whether to pay in installments within their banking app. The merchant receives the full payment upfront, just like a standard Pix transaction, with no credit risk. Offering this option can also encourage larger purchases, giving customers the flexibility to buy higher-priced items and potentially boosting average order value.
At the same time, there are a few considerations to keep in mind. The decision to pay in installments happens after checkout and is fully controlled by the customer and their bank. Eligibility, interest rates, and credit limits are determined by the customer’s financial institution, not the merchant, so not every buyer will opt for installments. As a result, while Installment Pix can increase sales, the actual impact depends on customer behavior and banking rules.
In short, Installment Pix provides a low-risk way to offer flexible payments and potentially drive larger orders, but merchants should understand that uptake and outcomes may vary.
Looking for Faster, Safer Pix Payments? Discover PagBrasil’s Solutions
When the payment experience flows smoothly, conversion rates follow. The challenge is to combine speed and reliability to create that frictionless purchase journey.
PagBrasil offers a suite of payment solutions designed to streamline the process, eliminate unnecessary redirects, and keep transactions fully under your control.
PagBrasil’s 1-Click Pix: Increase Conversions with Upfront Payments
With PagBrasil’s 1-Click Pix, customers can complete their payment directly on the checkout page, without needing to open their banking app.
This makes the purchase journey simpler and more direct, reducing cart abandonment and speeding up order confirmation.
Here is how it works:
- For the first payment using 1-Click Pix, the customer selects the 1-Click Pix option and chooses their bank.
- After clicking to confirm the payment, they authenticate their device using facial recognition, a password, or other biometric verification.
- The payment is completed once the biometric confirmation is accepted.
- For the second payment and all subsequent purchases, the customer simply selects the 1-Click Pix option, chooses their bank, and confirms with biometrics—no additional steps required.
Automatic Pix: Streamlining Recurring Payments for Subscription Services
For subscription-based businesses, PagBrasil’s Automatic Pix turns recurring billing into a seamless, continuous flow, with prior customer authorization and payments processed on the agreed dates.
Using this method, payment success rates improve, default rates tend to decrease, and the overall subscriber experience is enhanced.
This feature is available through PagStream®, our subscription management platform that streamlines the administration of plans and payments.
Ready to Simplify Payments with Pix?
PagBrasil combines proprietary technology, deep expertise in the Brazilian market, and a commitment to frictionless payment experiences that drive higher conversion.
If you are expanding into Brazil or looking to optimize your local operations, talk to one of our specialists to learn how PagBrasil can help your business provide seamless, secure, and fully localized payments.
