What has made Pix such a huge success among Brazilians in less than two years of existence? Also, how has this payment method been an influence in the digital payment realm in Brazil? Let’s find out.
Brazil is leading the growth of digital payment in LatAm due to its considerably easy digital penetration – while approximately 90% of banking customers in Latin America use some form of digital banking, Brazil heads the list with 98% of banking consumers, followed by Mexico with 94%.
The Brazilian Government has been promoting digital expansion through the use of Pix. The instant payment solution has put Brazil on the international map, and the instant payment method was considered one of the most ground-breaking payment solutions of 2021.
Read more: The Future of the Payment Industry in Brazil is Digital
Pix Becomes the #1 Payment Method in Brazil
Pix closed in 2021 with breaking records, surpassing the most traditional payment methods in the country like credit cards and boleto bancario.
The Central Bank of Brazil registered 3.9 billion transactions made with Pix, against 3.8 billion transactions done with other payment methods in the last three months of 2021. According to specialists, there are a few reasons for Pix’s success.
Read more: Pix: 10 Questions and Answers About Brazil’s Instant Payment Method
Pix Is the Game Changer
When compared to the most traditional payment methods, Pix offers a variety of benefits – and that’s what makes Pix stand out and attract many users, including unbanked and informal workers. Here are some of them:
- No fees
Pix doesn’t charge for bank transfers. Before Pix, people would make payments and transfers with a preference for higher amounts. Now, Pix encourages people to ditch cash and adopt digital payments with Pix instead.
- Available at any time
Payments and transfers done with Pix are instant; it doesn’t matter if it’s a bank holiday or outside of business hours.
- No cards required
To do a Pix transfer or payment, all you need is an address key connected to your bank account, a smartphone, and an internet connection, in case you’re receiving a transfer. If you’re making one, you’ll need the receiver’s key. There’s no card or ID requirement, and the wire transfer is completed within seconds.
Read more: Pix 2022: What to Expect from Brazil’s Newest Payment Method
Going Beyond Pix
When we talk about digital payment trends in Brazil, what comes to mind first is Pix. But Pix was just the gateway into the digital payment world – and it certainly won’t stop there. Other trends are here to follow. We’ve wrapped up the main ones:
- Recurring payments
According to a survey published on Statista, nearly 60% of Brazilians spent money on digital video content via a subscription in 2021.
The country’s subscription economy has grown far and wide and reached different niches as well, such as beverages, gyms, food delivery, pet shops, and many others.
PagBrasil has developed PagStream®, a unique solution that handles all your subscription payment systems. Whether you are a streaming platform, e-learning website, subscription club, or something else, your business can benefit from our comprehensive subscription management solution.
Read more: How to Avoid “Subscription Fatigue” and Boost Subscribers’ Loyalty
- Payment link
Brazilians lead the global ranking on average hours spent on mobiles per day, with an average time of 5.4 hours daily. They mostly spend time on instant messaging apps, social media, and playing games.
A digital business can find opportunities to sell its product or services through payment links and requires no website or e-commerce infrastructure.
M-commerce is set to double its share of retail by 2025 worldwide. It’s essential for any digital businesses which intend to increase their conversion rates to keep their website as mobile-friendly as possible – providing a fluid checkout experience for the shopper, with many payment options to choose from.
Some of them are hassle-free resources such as Boleto Flash®, designed and optimized for mobiles with just a one-tap copy-paste method in the banking app and instant payment confirmation. Other easy-to-use methods are Débito Flash™ and PagBrasil Pix.
Learn more about the possibilities of expanding your digital business to Brazil. Get in touch with our team today!