Online payment has now become one of the most common ways to pay money. Whether you are purchasing things online or offline, the payment is always made online.
Instant payment is the mode of transfer where the money is transferred instantly within a couple of seconds. Different organizations and users can make the payment to the merchant or businesses with just a few clicks.
The fund swill is debited from the sender’s account and credited to the receiver’s account in no time. Instant payments are the ones that are available 24/7. In simpler words, the user can make the payment anytime they want.
With that being said, there is a new instant payment system available in Brazil. It is made by The Central Bank in Brazil and the name of the new payment system is PIX.
PIX is made keeping in mind the digitalization and the gap in the eCommerce payment methods. The instant payment method will make a lot of work easier and better. PIX will decrease the current gap between various payment methods and also help the Brazilian people to make easy payments to anyone. It will support all the QR codes and wallets.
Overview of PIX
PIX is a payment system introduced by the Central Bank in Brazil. The main aim of the payment system is to make instant payments anytime. This will eliminate the use of credit cards and will give a new payment method for the people.
It will support all the wallets as well as QR codes. In simpler words, one can easily transfer money from one e-wallet to another e-wallet in just a couple of seconds using this new payment system.
A payment system will allow the organizations and status to make the payments without any issuers, card schemes, etc. They can easily make the payment using this system eliminating the need of other people.
This is different from wallets because, in a wallet, you will still make the payment using a credit card. Here, you can directly make the payment without the need for payments or any other.
In a wallet, you can’t transfer money out of it. Whereas, using this payment system, you can easily transfer money from ABC wallet to XYZ wallet in no time. One can transfer the money across the wallet as well as they can transfer money to other customers.
There are various ways of using this payment system including QR code and NFC.
Advantages of Instant Payment
There are various advantages you will get when you are using the PIX payment system. Here are some of the advantages of the PIX instant payment system.
The first advantage is that it will remove the need for the middleman. As there is no issuer or acquirer needed for the transfer, it will make the work a lot easier and faster. Other than this, the payment system will be available 24/7. That’s why people can transfer money anytime they want. The payment will be done in real time enabling users to complete the deal instantly. This will remove many barriers in payments and will increase digitalization. More and more people will use digital payments instead of cash.
The end-user won’t need a bank account. If the person is using a QR code as their payment method, they can easily make the payment with ease. Although, they will need an active account in one of the wallets.
Originally, there was another payment method in Brazil known as Bolto Bancario, this is one step ahead of that payment method. This will increase the support for e-wallets and QR codes.
Digitalization in Payments
Brazil is one of the countries where there were more than 30% of people don’t have any access to credit cards or don’t even have a bank account. This number was taken from a survey done in 2017. This would be roughly 48 million people with no bank account and no chance of paying digitally.
The new payment system will be one step ahead to help these people make the payment to other people using the technology.
There are more than 49% of people who don’t trust banks and 29% of people who will prefer cash over any other digital payment. One of the many reasons for this was because of the speed and ease of payment. It takes time to send a payment and it is also a light process if they don’t have a credit card.
The PIX payment system will save all these things giving a clear green light to all the people who want to use digital payments. They can even use the PIX system if they don’t have an account which is the best thing.
People of brazil prefers to use cash or paper money over digital payment. That’s why over 204 billion USD of the economy goes with paper-money. Brazil wants to evolve in the terms of digital payments giving many people a chance to make the payment using PIX without the need for a bank account.
There are many other great advantages that this payment system will bring along with all the given ones.
Digitalization in Online Shopping
Online shopping has increased a lot in Brazil. The mobile eCommerce in the new industry is tremendously growing. The only barrier that is slowing the growth is the easy payments. The PIX payment system will decrease the gap or might even remove it completely.
The payment system will have fewer fees as compared to the banks. This is the main reason why the people of brazil don’t trust banks. Having a proper payment system will surely change the way people see instant payments. This might even bring a new wave in digitalization.