As it marks five years of operations, Pix has reached almost 170 million users, according to an update from Brazil’s central bank. Transactions alone totaled BRL 11 trillion in 2024, highlighting its significant impact on the South American country’s financial services landscape.
In November 2020, Brazilians witnessed the launch of Pix, an instrument that would aim to transform the way people conduct financial transactions.
The central bank of Brazil also said that since then, much has changed, and the service created by Banco Central do Brasil (BCB) has become one of the country’s main payment methods.
The BCB’s Deputy Governor for Licensing and Resolution, Renato Dias de Brito Gomes, commented on various aspects of Pix’s life cycle.
Pix had initially offered two different options: transfers between individuals and QR Code payments.
In the years ahead, functionalities had gradually expanded.
Among them came “Pix Cobrança” (billing), “Pix Saque” (withdrawal), “Pix Troco” (change), and “Pix Agendado” (scheduled).
Recently, they have “Pix por Aproximação” (contactless) and “Pix Automático” (direct debit).
The BCB will also reportedly launch Special Return Mechanism (MED) 2.0.
The BCB’s deputy governor explained how “Pix por Aproximação” and “Pix Automático” work.
“As a contactless Pix, “Pix por Aproximação” can be processed through all major acquirers [regulated institutions that enable merchants to accept card payments]. So far, it can be used by Android phone users via a digital wallet or their bank app. It is working very well and tends to keep growing, as it is a very convenient and low-cost alternative for merchants,”
The outlook is said to be favorable for “Pix Automático”, according to Gomes:
“It is the direct debit solution brought to Pix. Any Pix participant can offer this product to legal entities, regardless of where the payer’s account is held. It is no longer necessary to have accounts in multiple banks, as was the case with the conventional direct debit system.”
According to the deputy governor,
“Pix Automático” has generated intense competition in the banking system because “direct debit is no longer a prerogative of a few banks.”
It also fostered competition in the real economy, as previously only large companies [such as power utilities and retail chains] could enter into agreements to receive payments by direct debit.
Gomes also highlighted Pix’s partnership with Open Finance:
“Throughout this journey, there has been significant integration with Open Finance, materialized most explicitly in the possibility of initiating Pix payments via Open Finance, which has greatly boosted e-commerce overall.”
Pix figures are striking, as the deputy governor emphasized:
“In 2021, we had 9.4 billion Pix transactions totaling around BRL 5 trillion. Last year, there were 63 billion transactions and BRL 26.4 trillion moved. To give you an idea, Brazil’s Gross Domestic Product (GDP) in 2024 was approximately BRL 11 trillion. That equals 2.5 times Brazil’s GDP in 2024. It’s an extraordinary volume.”
According to him,
“Pix enabled new business models, allowing people to undertake ventures that were previously off the radar. It energized a range of activities, making adoption faster than expected.”
Almost 170 million people use Pix in Brazil:
“That’s essentially almost every adult in the country. And we’ve already reached more than 20 million businesses [using the service].”
For Gomes, the payment method most replaced by Pix was cash, which he considers beneficial for all actors within Brazil’s payment system.
“Cash distribution logistics is very costly—not only for individuals, who always needed physical money and had to visit ATMs, but also for banks, which incurred costs with armored vehicles and distribution.”
ATM withdrawals in Q3 2020 “totaled BRL 1 billion. In Q3 2024, that figure dropped to BRL 660 million,” a 35% reduction:
Gomes noted that Pix brought more people into the financial system:
“Many people didn’t use the accounts they had. Or they only received their salary, withdrew everything, and used cash exclusively. After Pix, people realized the convenience of paying bills via mobile and changed this behavior, starting actually to use their accounts.”
