Discover the 7 characteristics of the PIX, according to the Central Bank

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PIX (Instant Payments System) was born in the context of the digital revolution, creating a new way to consume financial products and will be available to users on November 16, 2020.

The use of smartphones and internet access has increased considerably in the country, in addition, several payment methods have already proven successful, such as bank slips and credit and debit cards. But despite their success, they have some gaps and the PIX will fill some of them.

Or PIX intends:

  • Make life easier for payers and recipients;
  • Enable new business models;
  • Reduce costs;
  • Contribute to electronic payments and financial inclusion.

To help clarify the matter, we have compiled below the information provided by João Manoel Pinho de Mello, Director of Financial System Organization and Resolution (DIORF) of the Central Bank of Brazil, in his speech at the 9th edition of the Paytech event, held in September 2020.

Current context and role of the Central Bank

The pandemic highlighted the importance of means of payments with reduced contact, such as the NFC (Near Field Communication) and the use of the QR code. In addition, there was an increase in e-commerce transactions, whose main feature is the lack of physical contact.

And the PIX will be very relevant in this aspect, as it allows payments to be made electronically, in addition to bringing increased liquidity for companies at this time of difficulties with working capital.

The Central Bank will basically have two fundamental roles: to operate the two platforms – instant payments system and the transaction account identifier directory; and the role of regulator – defining the rules of participation.

This platform will be extremely cheap: every 10 transactions made on the PIX will cost R$0.01 cents to the financial institution where the recipient's account is located. For comparison purposes, each TED today costs an average of R$0.06 and can reach up to R$0.13.

The BC collects this amount from the receiving institutions as a form of cost recovery, this operation is not for profit. Individual payers will be free to maintain the same conditions as other means of payment.

We list below the 7 main features of the PIX. Read on and learn more!

Speed

Transactions on the PIX are settled quickly, 50% of them within 6 seconds and 99% within 10 seconds, meaning the receipt is almost instantaneous. In the case of cards, for example, the transaction is authorized quickly, but receipt is not automatic.

Availability

Availability is full, as the service is available 24 hours a day and 7 days a week, that is, any day and time the customer needs. And the recipient gets the amount immediately, regardless of whether it is a holiday, weekend or outside business hours.

Multiplicity

The platform will support a multitude of use cases and solutions for different needs of payers and recipients. The most common will be transfers between people, but there will also be options such as: payments from individual to legal entity, in commerce, services and other businesses.

There is an agreement with electricity concessionaires for the bill to come with a QR code for payment by the PIX. In other words, accounts that, in general, come with a barcode for payment via bank slip will have a QR code.

Imagine a user who had his electricity bill cut, the compensation of a billet can take up to 2 working days, on PIX the compensation is immediate and the reconnection command can be automatic.

Convenience

From the payer's perspective, the platform is extremely convenient, as it provides a fast and easy experience, using a static or dynamic QR code. There is also the possibility of identification by key (CPF, CNPJ of the recipient, email, telephone, among others) which already identifies the person and account. The recipient is notified, within 6 seconds, of the receipt of a PIX.

The insertion of data on the platform can be manual (the same as when carrying out a TED operation) or with the use of identification by key. The static QR code contains a fixed set of information, while the dynamic QR code is generated for each transaction and values can be customized.

There is a great advantage in using it by commercial establishments, as it facilitates payment and reduces the cost of money (security). In addition, in the first half of 2021, PIX withdrawals will be made available with the possibility of cash withdrawals at commercial establishments.

Aggregate information

PIX and its settlement platform not only contain the financial settlement of the transaction, but also the transactional one. Not only does the money move in up to 6 seconds, but also the information on who made the payment. For example, in the case of an energy bill, not only does the resource end up in the bill, but also the information that that customer has paid arrives to the company.

Safety

User authentication is extremely secure, the platform was built based on the national financial system, which already has extensive previous experience with the Central Bank. Instantaneity does not generate insecurity, considering the establishment of daily transaction limits, always in line with other payment systems.

When a system is built from scratch, it has little legacy and becomes more secure than the others and, moreover, Brazil is a case of security and efficiency with means of payment.

open environment

The Central Bank is leading this project, however, it will not provide any services directly to consumers and recipients. He will be responsible for providing the platform and developing the set of rules for participating in this ecosystem, companies will use this infrastructure to offer the way of payment to their consumers.

At the moment, 980 institutions are in the process of joining, and in 34 of them the process is mandatory – payment companies or financial institutions with more than 500 thousand transaction accounts. The others entered on an optional basis because they saw the benefits of participation.

Feature schedule

As we mentioned at the beginning, the PIX will be available to users in November, but not in its entirety. We list below the release schedule of its features:

2020 – QR code, chave pix e inserção manual de dados;
2021 – Pagamento por aproximação (NFC- Near Field Communication), QR code para o pagador ser identificado mesmo estando offline, PIX garantido, Saque PIX, PISP no PIX e mecanismo privado de provimento de liquidez;
2022 – Requisição de pagamento e débito automático;
2023 – Pagamento com documento.

Do you want to continue learning about the subject and gain an in-depth view of the most relevant issues for the financial sector? Participate in the biggest event C4CC – C4 CREDIT AND COLLECTION FORUM! For more information, go to .

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