Instant payments platform Pix will integrate NFC contactless payment functionality for customers who have linked their bank accounts to Google Wallet.
Brazil’s central bank unveiled Pix by Proximity at a joint presentation with the president of Google Brazil. Initially, this feature will be available only to Google Wallet users on Android phones. However, the platform plans to roll out contactless payment support to all customers next year.
“For the user, everything will be done naturally,” said Natacha Litvinov, Head of Payment Partnerships for Latin America at Google in a statement. “The user can choose which account linked to the Google wallet will be used to execute the Pix transaction. Payment confirmation is done using biometrics, and the payment message is sent to the cell phone and also to the machine.”
Wider Integrations
The widescale launch of Pix by Proximity comes after Brazil established a framework for contactless payments this summer that was approved by the Central Bank and the National Monetary Council.
In addition to contactless payments, Pix and Google are working to add a “Pay with GPay” button in e-commerce applications to speed up transactions while keeping buyers on the seller’s platform. This integration comes as Pix’s use in e-commerce applications is soaring—the platform is expected to overtake credit cards as the predominant payment option in Brazil next year.
As the platform scales, concerns about fraud and security have emerged. The Central Bank plans to address these by installing transaction limits for purchases made from unknown devices.
In addition, Pix and Google Wallet are launching Night Mode. When activated, it will block all Pix transactions from personal accounts to unknown beneficiaries between 8 p.m. and 6 a.m.
A New Level
In addition to benefits for consumers, contactless payments offer substantial benefits for merchants. Customers have come to expect mobile payment options because they are fast, secure, and more hygienic. With the growing popularity of Pix, merchants who support contactless payments have a strong opportunity to expand their customer base.
“Today, the number of transactions sent to companies is still lower than that sent to individuals (the ratio was 70% to 30% this summer), but this could change,” Pedro Romero, Director of Wallet & Banking at Brazil’s PicPay, told Valor Investe. “We usually make many more payments to businesses than to individuals, so this new experience—which brings countless advantages to merchants—will take Pix to a new level.”