| October 15, 2022
The payment method is already accepted in 3 out of 4 virtual stores in Brazil and brings two advantages to the seller: it eliminates the “interruption” of sales common in boletos and guarantees cash on the spot
Photo: Marcello Casal Jr./Agência Brasil
The payment method is already accepted in 3 out of 4 virtual stores in Brazil and brings two advantages to the seller: it eliminates the “interruption” of sales common in boletos and guarantees cash on the spot. (Photo: Marcello Casal Jr./Agência Brasil)
Pix appeared on the market in 2020 as an option that would do away with bank transfers via DOC and TED, facilitating people-to-people payments. Because of this, the importance of options for sending funds, which previously guaranteed income from fees to banks, has been significantly reduced. Now Pix can make another sacrifice, this time in e-commerce: payment by bank receipt.
According to BC (Central Bank), Pix is consistently growing in payments between people and businesses, such as retailers. In September 2022, the number of such transactions was 430 million, compared to 130 million in the same period last year – a jump of 225%.
Transaction values grew less, indicating a higher share of small value purchases. Nevertheless, the total almost doubled in 12 months, rising from R$48.9 billion to R$91.7 billion. Year to date, through September, the amount paid by Pix between people and businesses has reached R$680 billion and could reach R$1 trillion by December.
Why Pix is attractive for retail
For retailers, Pix not only has the potential to reduce or even completely replace boleto, but it can also increase e-commerce sales and reduce churn. According to ABComm (Brazilian Electronic Commerce Association), bank receipt payments are not made 50% of the time.
Also, the lack of flexibility in payment can lead to an abandoned cart. According to a report by payments company Adyen, 52% of Brazilian consumers say they have abandoned a purchase because they couldn’t pay the way they wanted.
Using Pix as a means of payment has benefits for both consumers and businesses. The purchase approval process is instant, just like with a credit card, and there is usually a discount for cash payments. Credit comes to companies instantly and with fewer fees.
According to data from the GMattos Payment Study, just two years after launch, Pix is already the second most popular payment method, next to bank foreclosures. Pix adoption has the potential to reach 92% in the coming years, the consultancy predicts. As of January 2021, Pix had 16.9% adoption among Brazilian e-commerce; in July of this year, the index reached 76.3%.
Removing an area from a map
At Mercado Livre, Pix adoption increased by around 130% and caused a 33% decrease in boletus usage in the second quarter of this year, compared to the same period last year. On the platform, official stores of brands such as Samsung, Nike and Hering already accept payments via Pix.
With 30 million active users and 10 million sellers, Mercado Pago, a digital bank belonging to the same group as the Argentine retailer, provides a payment system for physical and digital stores. Today, the service already accounts for a quarter of all transactions made through Pix. In addition to several online stores, the company uses Pix to make payments in pharmacies of the Pague Menos chain and in physical C&A stores.
Daniel Davanço, head of payments for Mercado Pago companies in Brazil, estimates that this year the sales of merchants who accept Pix have grown 20% to 25% more than those who still did not have Pix as a means of payment. “Pix’s conversion today is over 75%. The online world has embraced Pix very quickly, because it improves the experience for all parties,” he says.
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