Pix, Brazil’s instant payment system, is expected to overtake credit cards as the dominant payment method for Brazilian e-commerce transactions next year.
Research from Ebanx, a Brazilian payments firm, highlights how Pix adoption has grown much faster than expected. In fact, earlier this year, all indications were that the platform wouldn’t match credit card transactions until the end of 2026.
That is a significant achievement for a platform that was launched by Brazil’s Central Bank in 2020. Part of the reason Pix has caught on so fast is it is free to use, and transactions settle in real time, benefitting merchants.
“This is big news for retailers, and an especially popular topic in the U.S., because merchants and their lobbying groups are relentlessly focused on reducing the cost of payments to their businesses,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “The QR-code-based platform is easy for consumers to use through their mobile devices. It also enables identity verification of the buyer in e-commerce transactions where a card validation device like a payment terminal is not part of the transaction.”
Rapid Expansion
Instant payments have gained significant traction in Brazil, where the economy was previously more cash-based. Pix has quickly emerged and expanded to include more financial services, with speculation that the platform may soon introduce buy now, pay later functionality.
However, one area where Pix still falls behind credit cards is in its provisions for resolving customer disputes.
“Particularly in e-commerce merchandise sales, consumers have chargeback rights for goods that aren’t received or aren’t as described,” Apgar said. “Most of the pay-by-bank schemes, especially where instant payments are involved, don’t provide any after-sale support for consumers. If something goes wrong the consumer is left to deal with the merchant.”
Outweighing the Drawbacks
Though there are still some hurdles to clear, the benefits of Pix outweigh the drawbacks. Brazil’s central bank recently reported that Pix set a record for daily transactions, reaching 227 million.
“There are so many service-based applications that align perfectly with instant payment schemes like Pix,” Apgar said. “That includes ride-sharing apps like Lyft and Uber and food delivery services like Grubhub and Door Dash, along with many app-based transactions like parking costs, movie tickets, or stadium concessions.”
“These purchases now fall under the heading of e-commerce, because the purchase is being made through a mobile app instead of in-person at the point of service,” he said. “That means instant payments platforms like Pix aren’t just about the changing face of payments, they are about the changing face of e-commerce.”