Technology

Brazil's real-time payments system PIX may have cash withdrawal starting in the second half

The funds may be withdrawn at retail, companies and 24-hour banks that have entered into a contract with a financial or payment institution

Photo: REUTERS/Ueslei Marcelino/File Photo
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  • The so-called Pix Saque will be exclusively for cash withdrawals;
  • Banks themselves will also be able to offer Pix Saque in their own ATM chains.

Brazil‘s Central Bank-backed instant payments system PIX may allow the withdrawal of cash from the second half of this year, with the possibility of four free withdrawals per month with a maximum daily value of BRL 500, according to rules put out for public consultation by the Brazilian Central Bank on Monday.

The PIX withdrawal option will be exclusively for cash withdrawals, while the PIX Troco (PIX exchange) will also involve withdrawals, but always associated with a purchase of goods or services.

READ ALSO: Brazil’s second-largest bank, Bradesco, starts to feel PIX impact in its checking accounts revenues

The resources can be withdrawn at retail stores, companies, and 24-hour banks that have signed a contract with a financial or payment institution, the Central Bank said in a statement. The banks themselves will also be able to offer Pix Saque in their own ATM chains.

The establishments that start offering the new PIX functions will be free to define days and times they will make the service available and in what format (withdrawals in cash only in multiples of 10, for example).

“The two innovations will bring more convenience to users, expanding the capillarity of the withdrawal service; and increased competition by providing better conditions for the supply and pricing of withdrawal services, especially by digital institutions and all other institutions that do not have their own branch or ATM network” (like fintechs, for instance), said the Central Bank.

READ ALSO: Financial institutions in Brazil will have to offer payment scheduling via PIX starting in September

The rules may be improved based on suggestions received in the public consultation, which will receive contributions until June 9.

(Translated by LABS)

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