Pix is ​​growing in e-commerce and should punish the payment end of the purchase with boletus

ON pix it hit 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 claim other victims, this time in e-commerce: payment by card.

According to data from Central bank (BC), Pix has consistently grown in people-to-business payments, 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 the Brazilian Association of Electronic Commerce (ABComm), 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.

Pix works for QR code or payment code; BC prepares a payment initiator integrated with bank accounts Take photos: Leo Souza/Estadão

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 lower 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. In January 2021, Pix had 16.9% acceptance among Brazilian e-commerce; in July of this year, the index reached 76.3%.

Removing an area from a map

on Free market, Pix adoption increased by about 130% and caused a 33% decrease in bolet usage in the second quarter of this year, compared to the same period last year. The platform has official stores of brands such as SamsungNike and Hering now 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.

Appliance giants: bet on Pix

Traders like Via (former Via Varejo) since last year it has been offering Pix payments, including in the physical stores of Casas Bahia and Ponto. Recently, the company began using Pix to facilitate settlements in debt renegotiation cases.

already Luiza magazine offers Pix payments on its website and app, but is also investing in its alternative. The company has created, within Fintech Magalu, a payment system that promises to be faster and more convenient than Pixo because it doesn’t require consumers to access a banking app or copy and paste barcodes.

Boleto will continue to coexist, but with less and less use. Many companies are encouraging the migration of Bolet to Pix.”

Lorain Pazzetto, Head of Open Finance at Grupo FCamara

Transfers are made through the Initiator of Payment Transactions, a modality offered by the Central Bank that enables the integration of websites and applications of retail companies with banking systems, within the concept of “open finance”. The payment method was initially implemented on the KaBuM website, which sells electronics and was acquired by Magazin Luiza in 2021 for around BRL 3.5 billion.

For Robson Dantas, Head of Fintech Magalu operations, the fact that the payment initiator is simpler than Pixo can reduce purchase withdrawals even more. “The experience makes the user’s life a lot easier, but this tool still has a way to go to get to where we are with Pixo. By the end of this year, we should see a consolidation of Pix usage,” he says. Mercado Pago and other major retailers in the country are also testing the payment initiator.

Pix dominates the economy as a whole

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Using Pix for payments goes beyond e-commerce. According to a study by Capco consultancy, conducted with 2,000 people online, Pix is ​​used by 94% of people surveyed, mainly to pay for online purchases (67%), pay service providers (66%), in cafes and restaurants (60%) and in supermarkets ( 43%).

The bank note should still survive, but could become a niche option. “Murmurs will continue to coexist, but with less and less use. Many companies are encouraging the migration of Bolet to Pix. Retailers will feel more comfortable if they limit the boleto,” says Lorain Pazzetto, head of open finance at retail technology company Grupo FCamara.

In addition to reducing churn, Pix should be encouraged by lower merchant fees than other payment methods. “Taking 0.1% off the value of sales to a retailer can mean millions in profits,” says Pazzetto.

When it reaches all financial institutions, Pix on installments will enable an increase in the value of transactions between people and businesses – today this market share is still dominated by credit cards. According to BC data, the average spend from January to September 2022 on transactions between people and businesses was BRL 264.

Some companies already allow Pix to be paid in installments via credit card, such as RecargaPay. In this way, the recipient has access to the money on the spot, while the consumer pays the installment amount. Between September 2021 and September of this year, the use of the Pix card among its users tripled, according to the company.

If the customer wants to pay with Pix to take advantage of a promotion in the store that offers discounts on e.g. cash payment, it is possible to choose to pay with Pix and pay in installments on RecargaPay. Although there is interest in the transaction, it is a common case among the company’s clients.

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