Crucial changes may be coming to Brazil’s payment landscape. As financial crime rises in the country, lawmakers propose a drastic change. Putting a [temporary[ stop to the Pix Instant Payments System is a drastic measure but an active topic of discussion.
The Pix Instant Payments System Conundrum
It is intriguing to see how the Pix Instant Payments System may meet a rather early demise in Brazil. The solution was developed by the country’s central bank and launched in November of 2020. Pix facilitates instant fund transfers between customers, businesses, and government entities. It has the full backing of the Central Bank of Brazil and processes over 1 billion transactions per month.
Those statistics are impressive, but the Pix Instant Payments System is also a pressing problem. More specifically, Brazilian lawmakers see it as a crucial cog in the machine, powering a steep increase in crime affecting the country. More specifically, there is a steep increase in people making ransom payments to criminals through Pix, which is something to address quickly.
If the Pix Instant Payments System were to be suspended, the impact of that decision would be impossible to predict. Moreover, Pix is essential to the recent partnership between Thunes – a global payments company – and Becs Baco – a Brazilian international digital payments platform. Both parties had high hopes for using Pix to power real-time payments in Brazil. Moreover, Pix users gain instant payments and enhanced interoperability between fintech providers and Brazilian banks.
Suspending the Pix Instant Payments System would be rather problematic for other reasons. Latin America notes a strong increase in demand for digital payment solutions. A logical outcome, as these payment methods provide more convenience, lower fees, faster settlement, and are more modern. However, the 80-fold demand for such solutions may hit a snag if and when Pix is suspended. Moreover, it may put Brazil behind other Latin American regions and their push for digital payments.
A Blow To Brazilian eCommerce
Making matters even direr in Brazil is the recent surge of eCommerce. More specifically, numerous businesses and service providers across Latin America have oped for eCommerce payment options. These solutions cater to the needs of business owners and clients alike. Payment options include pay links, QR codes, social media transfers, digital wallets, mobile apps, and more.
As digital commerce is expected to note a 73% increase in volume by 2025, suspending the Pix Instant Payments System may be very complicated and troublesome. Hampering the growth of eCommerce can set Brazil back years. Moreover, one has to wonder if there are other alternative solutions to end the rise in crime and associated payments. While the need for more customer safety is understandable and commendable, a blanket suspension may not be the best approach to this matter.