PIX Review

What is PIX ?

Pix, a rapid payment infrastructure conceptualized and implemented by Banco Central do Brasil (BCB) — the apex financial authority of Brazil — was inaugurated in 2020, marking a pivotal development in the nation’s monetary landscape.

“Society demands something fast, cheap, secure, transparent and open,” said Roberto Campos Neto, president of the Central Bank of Brazil (aka BCB), and announced the creation of an instant payment system called Pix.

By the way, Pix is not an acronym. The name begins with the first letters of the words “pagamentos instantâneos” (which means “instant payments”), and “x” is our favorite mathematical variable, which is supposed to symbolize the possibility of using the system for absolutely any payments.

At the time of Pix’s inception, the top five banks owned approximately 80% of total assets and deposits (and there are almost 200 commercial banks in the country).

The Central Bank of Brazil has done its utmost to ensure a level playing field for all participants and increase competition in the banking system. In addition, such a platform is another step to move away from cash to electronic payments.

BCB opened registration for the new service eleven days before the launch and obliged all financial institutions with more than 500,000 customers to implement Pix on a mandatory basis. All others were strongly encouraged to do so. Banks immediately started sending their users notifications inviting them to sign up. Some of them even went a little overboard and registered phone numbers and CPF (or TIN) of some users automatically and without their permission, which is actually forbidden.

Well, on November 16, 2020, Pix started its official operation.

After eight months, up to forty million payments a day were being made through it, most of which were personal transfers, and in October 2021, Bloomberg called the app ubiquitous in Brazil. By November 2021, more than six billion transactions totaling R$3.75 trillion (that’s about US$682 billion) had already been made in the system, and by March 2022, more than 113 million people and 8.5 million companies had registered with Pix.

Gradually, Pix has made it possible to withdraw money from retail outlets and ATMs, schedule payments and automatically calculate fines, discounts, loan interest, etc.

The integration of Pix aliases translates into nearly instantaneous payment processing. Transactions unfold within mere seconds, positioning Pix as an exceptionally nimble and effective payment mechanism.

The antecedent limitations, wherein transactions were confined to conventional banking hours, have been superseded by Pix, ushering in a paradigm shift towards an incessantly accessible financial framework.

The advent of Pix payments underscores Brazil’s vanguard position in fintech across Latin America, a testament to its widespread adoption, with six out of every ten Brazilians seamlessly incorporating the system into their financial endeavors.

How to use PIX ?

Transactions can occur in three main ways:

• By means of a QR code.

It can be static (it can be found printed out at the cash register of some Brazilian “Fiverot” or at a micro-entrepreneur’s table) and dynamic (such a code is unique for each transaction and contains some additional information: it can be found, for example, on utility bills). From the point of view of the payer, however, it makes no difference what code he has in front of him, because in both cases he needs to scan it with his cell phone and pay by pressing a couple of buttons.

• Through NFC (Near Field Communication), that is, using technologies that allow information to be exchanged through direct contact.

• Using Pix Keys, which are special keys.They are of four types:
• Number in the Register of Natural or Legal Persons (CPF/CNPJ), i.e. in our way – TIN.
• E-mail address.
• Cell phone number.
• A unique key generated by the system, which looks like a set of random letters and numbers. That is, it is possible not to bind your personal data to the information about the transaction account.
• The key can be linked to any account in any Brazilian bank or to an account in payment systems (for example, iti itau or PicPay), which is convenient for those who have neither citizenship nor residence permit.One company can register no more than twenty keys in the same bank, and one person – no more than five (which, however, does not prevent him from registering five more in a second bank and five more in a third), one for each transaction account. Keys can be transferred from bank to bank, if necessary.

Limits of PIX

There is no minimum limit for payments, but to protect against fraud, banks and payment platforms may set a maximum amount of transfers per day or per month from one person. The account holder can then adjust these limits independently.

How to deposit to PIX ?

Depositing to PIX is a simple and straightforward process that can be done using your bank’s mobile app or online banking platform. Here’s a general guide on how to deposit to PIX:

1. Open your bank’s mobile app or online banking platform.

2. Log in to your account using your credentials.

3. Navigate to the “PIX” section or tab.

4. Select the “Deposit” option.

5. Enter the amount you wish to deposit.

6. Choose the Pix key type you want to use (phone number, email address, CPF, or CNPJ).

7. Enter the recipient’s Pix key.

8. Review the transaction details and confirm the deposit.

9. Your deposit should be processed instantly, and the funds will be available to the recipient within seconds.

Please note that the specific steps may vary slightly depending on your bank’s app or online banking platform. If you have any trouble, you can always contact your bank’s customer service for assistance.

How to withdrawing from PIX ?

Withdrawing funds from PIX is a simple process that can be done using your bank’s mobile app or online banking platform. Here’s a step-by-step guide on how to withdraw from PIX:

1. Open your bank’s mobile app or online banking platform.

2. Log in to your account using your credentials.

3. Navigate to the “PIX” section or tab.

4. Select the “Withdraw” option.

5. Enter the amount you wish to withdraw.

6. Choose the Pix key type you want to use (phone number, email address, CPF, or CNPJ).

7. Enter your Pix key.

8. Review the transaction details and confirm the withdrawal.

9. Your withdrawal should be processed instantly, and the funds will be transferred to your linked bank account within seconds.

Please note that the specific steps may vary slightly depending on your bank’s app or online banking platform. If you have any trouble, you can always contact your bank’s customer service for assistance.

Advantages of PIX

• First of all, instant transfers and payments available 24/7 were a novelty for Brazilians.

That is, really instantaneous: it takes only ten seconds for money to be debited from one account and “dropped” into another, on any day of the week and at any time of the day or night. At the same time, no one is interested in which branch of which bank accounts are opened and what details are available. You don’t need to enter any account information: the system will figure it all out for you.

No cards, no check sheets, no cash, no ATMs. You don’t even need a bank account, just a digital account or access to the payment platform. And no integration with other services on your smartphone.

Small business owners, who used to have to open accounts in all possible banks to prevent their clients from being charged a commission when paying for goods or services (which could be quite substantial – up to 30% of their cost), are particularly fond of this system.

• Second, Pix is a versatile and multi-functional thing. It can be used to send money from person to person, from person to business, from business to business, from person to government, and from business to government. So basically you can do anything: pay taxes or utility bills, pay off a debt to a friend, buy an ice cream cone or a car. The operation of Pix does not depend on the amount of the transaction or its type.

• Third, it costs no reals for regular users, and companies pay a very small percentage. BCB is responsible for the management and operation of all Pix operating systems, and there are far fewer intermediaries involved in the transfer process than with traditional payment methods.

• Fourth, Pix allows you to make transactions worldwide from more than 200 countries and convert foreign currencies at a rather favorable rate. It even has a special interface for cryptocurrency trading. There are no problems with hidden commissions, loss of profit due to bank fees or delays in payment processing.

Its services can be used by non-residents, offshore companies, foreign directors and shareholders, and B2BPay collects direct payments on behalf of vendors transacting with European clients.

In other words, when developing Pix, they tried to take everything into account, so that the “Wow!!!” effect for those who are used to entering endless data, paying a commission, and then waiting a few days for the transfer to reach the addressee was ensured.

• Fifth – security

In Brazil, various bad guys occasionally use a method called “express kidnapping” to get money. They grab people, take them to an ATM and, threatening them with a knife or a gun, force them to withdraw as much money as possible.

So, Pix, at first glance, can be used for exactly the same purpose – you don’t even need to take anyone anywhere, just (un)politely ask them to transfer their savings through the app right here and now. But in this case, criminals will be easy to figure out, because all transactions are tracked, you can’t use accounts created in someone else’s name, and no bank will allow you to register someone else’s CPF in your account.

Additional protection is provided by two-factor authentication. The confirmation code can be sent to the registered phone or e-mail, and if CPF or a random set of letters was used as a key, it can be sent to the application.

The bank can delay a payment that seems suspicious to it for half an hour during the day and an hour at night, so that it can be canceled if something goes wrong. In addition, there are special mechanisms that will help the sender if he does run into fraudsters.

These are, for example, warning blocking and a special refund mechanism.

At the same time, all information about transactions, first of all, is encrypted, and secondly, it is not in the public Internet, but in the network of the National Financial System (RSFN), which is completely separated from it. And instead of blockchain, digitally signed encrypted messages are used for transactions.

All of this has allowed Pix to reduce fraud by over 90% compared to using bank cards and Boleto.

Disadvantages of PIX

While PIX has revolutionized the way people make payments in Brazil, it’s not without its drawbacks. Here are some of the potential disadvantages of PIX:

1. Security Concerns:

• Phishing and Scam Risks: PIX’s simplicity can make it vulnerable to phishing scams and other deceptive tactics. Fraudsters may try to trick users into revealing their Pix keys or tricking them into making unauthorized transfers.

• Limited Fraud Protection: Compared to traditional payment methods like credit cards, PIX may offer less protection against fraudulent transactions. While banks have implemented security measures to protect users, there’s still a risk of falling victim to scams.

2. Potential for Misuse:

• Accidental Transfers: The ease of making PIX transfers can lead to accidental payments or mistakes. Users may mistakenly enter the wrong Pix key or send incorrect amounts due to human error or haste.

• Financial Abuse: PIX’s fast and easy nature could be exploited for financial abuse or coercion. Individuals may be pressured or manipulated into making transfers against their will.

3. Reliance on Technology:

• Technical Issues: PIX relies on internet connectivity and mobile banking infrastructure. Technical glitches or outages could disrupt PIX transactions, causing inconvenience and potential financial losses.

• Digital Literacy Gap: Some individuals may not have the necessary digital literacy skills or access to technology to fully utilize PIX. This could lead to financial exclusion and hinder their ability to participate in the digital economy.

4. Privacy Implications:

• Data Sharing and Tracking: PIX transactions involve sharing personal information such as phone numbers, email addresses, or CPFs. This data could potentially be used for tracking purposes or targeted advertising.

• Privacy Breaches: Data breaches or leaks could expose sensitive financial information linked to Pix accounts, raising privacy concerns and potential financial risks.

5. Regulatory Uncertainty:

• Evolving Regulations: PIX is a relatively new payment system, and its regulatory framework is still evolving. Uncertainty over regulations and potential changes could affect the long-term stability and adoption of PIX.

• Consumer Protection: As a new payment method, PIX’s consumer protection mechanisms may still be under development. Ensuring adequate consumer protection and dispute resolution processes is crucial for maintaining trust and user confidence.

Despite these potential drawbacks, PIX remains a widely adopted and popular payment method in Brazil. By addressing these concerns and continuously improving security measures, PIX can further enhance its role in promoting financial inclusion and facilitating digital transactions.

FAQ about PIX

Top casinos with PIX deposit method

Betway

Betway is a popular online casino that offers a wide variety of games, including slots, table games, live dealer games, and sports betting. They also have a generous welcome bonus for new players.

Bet365

Bet365 is another well-known online casino that is known for its excellent customer service and user-friendly platform. They also offer a wide variety of games and a generous welcome bonus.

Bodog

Bodog is a popular online casino that is known for its focus on sports betting. They also offer a variety of casino games, including slots, table games, and live dealer games.

Spin Sports

Spin Sports is a popular online casino that is known for its wide variety of slots games. They also offer a variety of table games and live dealer games.

William Hill

William Hill is a well-respected online casino that has been in business for over 90 years. They offer a wide variety of games, including slots, table games, live dealer games, and sports betting.

All of these casinos are reputable and offer a safe and secure gaming environment. They also offer a variety of payment methods, including PIX, so you can easily deposit and withdraw funds.

Here is a table summarizing the top 5 casinos with PIX deposit method: