PISP: Learn How 1-Click Pix Works and How It Optimizes E-commerce Payments

Have you ever heard of PISP? Short for Payment Initiation Service Provider, is a technology that simplifies digital Pix payments, allowing them to be completed seamlessly. This makes online shopping faster and enhances the user experience.

In this guide, you’ll find:

• How PISP works and a step-by-step to the payment experience.
• The benefits of PISP for both consumers and merchants.
• How to offer PISP in your online store.

What is PISP?

PISP, which stands for Payment Initiation Service Provider, is a financial service that enables consumers to make digital payments to businesses (P2B) faster. Acting as an intermediary between consumers and financial institutions, it simplifies transactions and provides a more integrated experience.

This technology, made possible by Open Finance, enhances the Pix payment journey.

Note: It is possible that when reading or hearing about the topic, you may come across the acronym ITP, instead of PISP. Both refer to the same solution, but ITP is the Portuguese acronym for “Iniciador de Transações de Pagamento”.

How Does Payment via PISP Work?

Here is a practical comparison between the current Pix experience and Pix with PISP. In both cases, imagine the customer is making a payment on their mobile device.

Step-by-Step Payment with Pix (Current Mobile Experience):

1. The customer selects the Pix option.
2. Copies the code.
3. Opens their bank app.
4. Authenticates with their password or biometrics (e.g., facial recognition).
5. Clicks on Pix.
6. Selects the “Pix Copy and Paste” option.
7. Pastes the code.
8. Clicks “Continue.”
9. Enters their password or biometrics as prompted by the bank.

Step-by-Step Payment with Pix Using PISP on Mobile:

1. The customer chooses to pay via Open Finance Pix (PagBrasil offers this as “1-Click Pix”).
2. Selects their bank.
3. Clicks confirm and is automatically redirected to their bank app.
4. Authenticates with their password or biometrics (e.g., facial recognition).
5. Clicks “Confirm Payment”.

What Are the Benefits of PISP for Consumers?

For consumers, the biggest advantage of using PISP is a simplified payment process.

The number of steps needed to complete a purchase is significantly reduced, and customers don’t need to leave the checkout page to access their bank app, creating a smoother and faster experience.

What Are the Benefits of PISP for Merchants?

Offering this option provides a competitive edge, as customers tend to prefer stores that deliver a smoother and more convenient shopping experience.

Being recognized as a store that provides an excellent shopping experience positively impacts your brand’s image.

Satisfied customers are more likely to become repeat buyers and recommend your business to others.

A more streamlined experience also boosts conversion rates, as every click removed reduces the chance of cart abandonment.

How Can You Offer PISP Payments in Your E-commerce Store?

Now that you understand the benefits of PISP for both consumers and merchants, you may be wondering how to make it available for your customers, enhancing their experience and boosting your store’s conversion rates.

PagBrasil is currently the only digital payment processor offering PISP for e-commerce, with a ready-to-use solution.

The solution, called 1-Click Pix, is embedded in PagBrasil’s Payment Link, making it ideal for recovering abandoned carts and for omnichannel sales.

For instance, say a customer abandoned their cart at checkout on your site. You can send them an automated payment link that includes 1-Click Pix. For a social media sale, you can send the link instantly, encouraging impulse purchases.

Below, you’ll see how the 1-Click Pix experience works in PagBrasil Checkout.

What Improvements Are Expected for PISP?

Starting in February 2025, the PISP payment journey is set to become even easier when the Central Bank launches the No-Redirect Journey (JSR), which will enable Pix without redirection.

With this, instead of being redirected to their bank’s app to complete the transaction, consumers will be able to finalize purchases directly on the website or app where they’re shopping.

This evolution is made possible by changes the Central Bank is implementing in the Open Finance environment, which enables the voluntary sharing of customer banking information among financial institutions.

To put it simply, think of your financial information being spread across various banks and financial apps. With Open Finance, you can choose to share these details across institutions—always with your permission and the ability to decide what information can be shared. You can also consent to a financial action—in this case, paying with Pix.

With this permission, consumers can enjoy a more practical, customized payment experience without needing to authorize each payment manually. In other words, consumers grant permission in their bank app once, allowing payments to be completed directly within the store’s environment.

If you’d like to know more about the No-Redirect Payment Journey, we recommend reading the Brazilian Central Bank’s Resolution No. 406.

You may be wondering, “What’s the connection between Open Finance, the No-Redirect Journey, and Pix without Redirection?”

Here’s how they connect:

• Open Finance provides the technological infrastructure for the No-Redirect Journey to work. By sharing data, financial institutions can integrate their systems and enable smoother payments.
• The No-Redirect Journey enhances the end user’s experience, simplifying the payment process.
• Pix without Redirection is a concrete example of how the No-Redirect Journey will be applied, specifically for virtual payments on websites or apps.

Conclusion

The ability to offer payments via PISP is a major advancement for digital payment experiences, as it significantly reduces the number of steps needed to complete a transaction.

For merchants, this streamlined journey positively impacts conversion rates.

PagBrasil is a pioneer in offering PISP for e-commerce in a ready-to-use solution. Known as 1-Click Pix, this option is available in PagBrasil Checkout, our Payment Link, and will soon be accessible in our Shopify app for merchants.

Interested in this solution? Talk to our specialists to learn more.