Technology

Brazilian instant payment PIX to start in November with QR Code and cash transfers

Later, the new payment system backed by the Brazilian Central Bank will roll out installments and contactless payments

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  • The “keys” for PIX will begin to be rolled out from October 5th, a system of identification for the new platform;
  • According to NeoFeed, there is a silent race for these customers cell phones within Telcos.

Services such as payments through QR Code and scheduled transfers will be the first ones to work on PIX, the new instant payment system backed by the Brazilian Central Bank, starting on November 16. Later on, the financial authority will roll out installments and contactless payments (using NFC technology), reported Valor Econômico.

From October 5th, those interested in using PIX must register the so-called ‘PIX Key‘, which will be a way of identifying who is the payer and the recipient. This key can be a phone number or other types of identification. It was first scheduled to happen on November 3rd, but the Brazilian Central Bank anticipated it.

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According to NeoFeed, having a phone number, a registration number or an e-mail attached to an account will ‘tie’ the customer to a single account. Currently, through the traditional transferring methods in the country (TEDs and DOCs), users can choose the account they want. From October 3rd, when making a transaction between mobiles, or from a mobile to a POS or paying via QR Code, there will be a single account registered to a key.

So far, among banks, fintechs and credit unions, 980 institutions have already registered to serve through PIX. “There will be a fight over customers’ cell phones numbers”, the executive said to NeoFeed.

READ ALSO: Large-scale instant payments adoption in Brazil may lead acquirers to lose up to BRL 13 billion a year

However, there are those who see a certain exaggeration in the question of the race for the key records. A card banner executive told NeoFeed that “people are likely to register multiple keys in multiple emails and phones at the same time.”

Telecommunications companies are also moving. Executives from major telecoms positioned themselves saying that they will join PIX and may even create digital wallets plugged into the platform.

The impact for telcos like TIM, Claro, Oi and Vivo is huge, says NeoFeed. PIX may save BRL 1 billion for all operators in cost of recharge commission and payment of invoices.

READ ALSO: Brazil’s instant payments system can reach 20 million users in its first year

For neobank C6, the objective of a partnership with TIM is to gain scale, to bring to its base a large portion of the operator’s 55 million customers. For TIM, this brings more revenue and even a part of the bank’s equity.