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Santander, Banco do Brasil, and Nubank are some of the players offering prizes to retain consumers as PIX approaches

Brazilian banks are offering prizes of up to BRL 1 million to those who register in the instant payment system

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  • Santander launched a promotion called “SX do Milhão”, pledging to raffle BRL 1 million among customers who register with PIX through the platform created by the bank;
  • Banco do Brasil, on the other hand, says it will raffle 237 prizes that add up to BRL 700 thousand for those who register on PIX through the bank’s platforms;
  • Nubank joined the race with prizes of up to BRL 50 thousand for those who use the Nubank platform to register and use PIX;
  • Keeping consumers connected to the bank and preventing them from migrating to other financial institutions to use the new payment system is a strategy to mitigate losses in revenues, since PIX will operate at a much lower cost than current bank transfers.

PIX, Brazil’s instant payments system, is expected to debut on November 16, but banks in the country are already sparing no effort to avoid that customers migrate to other institutions to use the system.

Banks and fintechs such as Santander, Banco do Brasil, and Nubank are some of the institutions launching prizes and promotions to try to keep customers on their bases.

According to the Brazilian media outlet Correio Braziliense, Brazilian banks are offering prizes of up to BRL 1 million to those who register in the instant payment system.

Santander launched a promotion called “SX do Milhão”, pledging to raffle BRL 1 million among customers who register with PIX through the platform created by the bank specifically for instant payments, called SX. The bank will also offer 10 days of interest-free overdraft to everyone who keeps PIX’s registration active at the bank.

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Banco do Brasil, on the other hand, says it will raffle 237 prizes that add up to BRL 700 thousand for those who register on PIX through the bank’s platforms. The chances of winning prizes, ranging from BRL 500 to BRL 100 thousand, increase if the consumer registers all possible PIX keys on the bank and if they use the bank structure to make an instant payment when the system go on air on 16 November.

The Brazilian fintech Nubank also joined the race, by promising to distribute prizes of up to BRL 50 thousand for those who use the Nubank platform to register and use PIX.

Key options are limited in Pix. In practice, it can be the user’s taxpayer registry number (known by the acronym CPF in Portuguese), cellphone number, or e-mail address, besides the option to use QR Code. As users can’t use the same key in two different financial institutions, banks and fintechs started rush a kind of “pre-registration” of these keys as early as in September.

The executive director of payment methods at Banco do Brasil, Edson Costa told Correio Braziliense that being the bank chosen by users to use PIX will strengthen the institution’s bond with customers, including offering new products and services. Such as Santander, Banco do Brasil considers offering credit services through PIX.

Keeping consumers connected to the bank and preventing them from migrating to other financial institutions to use the new payment system is a strategy to mitigate losses in revenues, since PIX will operate at a much lower cost than current bank transfers in Brazil such as TED and DOC, which can cost up to BRL 20. Financial institutions believe that by maintaining a broad customer base, it will be possible to offset this drop in revenue.

PIX is poised to leverage financial inclusion in the country at an unprecedented pace, but what will determine if these wave of newly banked population will stay, is the capacity of banks and fintechs to offer the right range of solutions, as João Bragança, senior director for the financial industry at consultancy Roland Berger, explained to LABS.

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