Our new cross-border service provides an enhanced payment experience for Brazilians on travel and brings the benefits of Pix to physical stores abroad
Already a staple of Brazil’s social and business environment, Pix has become one of the world’s most successful instant payment systems. According to the Central Bank of Brazil (Bacen), in March 2023 alone, Pix payments amounted to R$ 1.2 trillion (US$ 240 billion) in the country, the highest monthly record since their launch in 2020.
SEE ALSO: Pix for Gringos: A Comprehensive Guide to Brazil’s Instant Payment Method
Going global is now the most anticipated milestone for Pix – and PagBrasil is trailblazing this move releasing an international Pix solution. Developed with our exclusive technology and experience in cross-border payments, the mobile POS service allows Brazilians to pay for in-store purchases with Pix, benefiting from real-time currency exchange and lower transactional costs.
Read more to know how PagBrasil’s international Pix works and how it can drive customer satisfaction among Brazilian tourists.
What is PagBrasil’s International Pix?
Official data from 2022 estimates that Brazilian tourists spent over US$ 12 billion on international travel. When departing from Brazil, travelers may carry up to US$ 10,000 in cash. However, for practical and security reasons, they usually choose to pay with domestic credit cards: last year, more than half of the purchases (55%) were made with this method, despite its usage abroad typically incurring additional charges of 10% to 12%.
By cutting off constraints associated with cards and cash, Pix is a mighty tool to encourage spending. PagBrasil’s international Pix pushes on this asset, delivering instant payments at significantly lower federal and exchange rates (see below). The solution also enables real-time currency exchange, safeguarding both customers and merchants against market fluctuations.
Tax rates on international purchases for Brazilians
| IOF Federal tax on financial transactions | FX rate Exchange rate markup | |
| Credit cards | 5,38% | 5% to 7% |
| PagBrasil’s International Pix | 0,38% | Less than 4% |
Allowing for in-store Pix payments improves both the customer experience and overall travel planning for Brazilians. In addition to using their country’s most popular payment method abroad, tourists get to adjust their expenses as they go, and shop locally for products and services usually bought in advance (such as travel packages, tours, and hosting).
For warm, friendly people like Brazilians, there is also a sense of homecoming to finding stores where Pix is accepted. This helps to build customer loyalty and generates additional revenue for local businesses.
“For merchants, the amounts in dollars or euros compounding their weekly balances are guaranteed to be the same from the time of payment. The amount paid in Brazilian reais is final and guaranteed for customers as well,” says Alex Hoffmann, PagBrasil’s CEO and co-founder.
How does PagBrasil’s International Pix work?
The service developed by PagBrasil takes Pix’s technology to foreign physical stores. Here’s how:
1. Attendants can initiate Pix payments from any internet browser on a mobile device by entering the customer’s CPF (Código de Pessoa Física, Brazilian’s tax identification number) and the amount to be charged.
2. The amount is converted from USD or EUR to Brazilian reais (BRL) at the moment’s exchange rate. A QR code is generated for the customer to scan on their banking app of choice.
3. When payment is completed, a confirmation sign appears on the screen. Attendants can generate a payment receipt to be sent to the customer by e-mail.
4. If the customer does not wish to receive the receipt, attendants can tap on Next Order to be redirected to the landing page.
Forecast for International Pix Payments
With over 600 million keys registered by consumers, companies, and governmental entities, Pix has been driving efficiency and competition in the Brazilian market by reducing transactional costs and boosting digitalization.
One could wonder if the widespread adoption of Pix in Brazil has been a blow to other payment methods in the country. While it is true that Pix is cannibalizing cash payments, on the other hand, it has fueled credit and debit card usage. Also, for in-store purchases abroad, Pix was virtually unavailable – leaving an open field for card payments until now.
“Pix holds immense potential not only as a payment method but as a platform for innovative solutions. We took to developing our international Pix solution aiming to leverage this potential even further,” says PagBrasil’s Alex Hoffmann.
PagBrasil’s solution comes ahead of other initiatives for a global instant payment system as effective and far-reaching as Pix. Besides the project helmed by the Central Bank of Brazil, Nexus, developed by the BIS Innovation Hub, figures as another promising endeavor outside Brazil.
For now, PagBrasil’s international Pix is available in Uruguay, Argentina, Chile, and selected locations in the United States with an expressive influx of Brazilian tourists, such as Florida. Closing the first holiday season in Latin America, in 2024, the company aims to reach an yearly US$ 12 million on transactional value, based on the numbers of Brazilians’ average expenses on international travel.
The business’s scaling plan is in the works and will follow the global market’s demand. If you are interested in offering PagBrasil’s international Pix solution to your Brazilian customers, visit the product’s landing page to get more information and talk to our specialists.
