Once upon a time, money transfers took weeks to deliver.
Those days are gone—especially in Brazil.
In November 2020, the Central Bank of Brazil officially launched Pix Payments, a payment method that changed the local economy overnight.
Pix is the future of payments, especially if you’re sending money to Brazil.
What Is Pix Payments?
Governments have long debated the merits of a “cashless” society. Some have supported it, and others have fought against it.
While others talked, Brazil took action.
In November 2020, the Brazilian Central Bank officially launched Pix Payments, an instant payment platform that guarantees the transfer of funds in under 10 seconds.
Pix users can send and receive money 24 hours a day, 7 days a week, 365 days a year—including holidays and weekends.
While the underpinning technology is complex, the platform is intuitive. After all, Pix uses an app that functions much like a digital wallet.
All consumers need to do is download the app, and set up a unique Pix key by using either a cell phone number, an email address, or a CPF or CNPJ (i.e., a Brazilian taxpayer ID number).
It’s a quick and straightforward process. According to the Brazilian Central Bank, “transactions are irrevocable and processed individually within seconds.”
Sending money to Brazil has never been easier.
Embracing the Future of Payments
Pix marked an enormous cultural pivot for Brazil, where until 2019, over 70% of transactions were made in cash.
The Brazilian Central Bank believed that cash and credit card fees incurred high social costs to the retail market, so the Bank decided to create a more modern system.
According to Breno Lobo, Senior Adviser at the Central Bank of Brazil, “there was a great opportunity to build a new means of payment from scratch, with the appropriate features to promote further digitization of the market, and to prepare our retail payment system for the future.”
It didn’t take long for the people of Brazil to embrace Pix.
By December 2022, the platform boasted over 110 million users with transactions exceeding a whopping $200 billion a month.
While the Brazilian Central Bank will undoubtedly be encouraged by such statistics, they may appreciate this one most: 86% of consumers use Pix more than credit cards and cash.
If cash was king in Brazil, it has since been dethroned.
The Benefits of Pix Payments
Pix enhances the buying experience for both the merchant and the consumer.
On the one hand, merchants enjoy lower acceptance costs for all transactions, as Pix involves fewer intermediaries than traditional payment methods (like credit cards).
Plus, merchants have the added benefit of always receiving the funds right away, rather than waiting days (or weeks) to get paid.
Consumers also stand to benefit from Pix in several major ways, including:
- Full-time availability: 24/7/365, including weekends and holidays.
- Increased convenience: one step to payment and no wait times.
- Enhanced safety: all data is safeguarded by the Brazilian Central Bank.
While making transactions more seamless and affordable, Pix has also helped promote financial inclusivity for many Brazilians.
According to Accenture Senior Strategist Ricardo Pandur, “there is a gap of 30 million people using Pix that were previously considered unbanked.”
How to Use Pix Payments With uLink
Pix provides the fastest way to send money to Brazil.
That’s why at uLink we have enthusiastically incorporated Pix into our own platform.
Whether you want to send money to e-wallets or banks in Brazil, this quick five-step process will ensure your money gets delivered in no time:
- Log in to the uLink app and tap Send Money.
- Add your Beneficiary.
- Choose Pix as your Delivery Method
- In the Pix Alias dropdown, choose one among the following:
- CNPJ: Cadastro Nacional de Pessoas Jurídicas, the business identification number
- CPF: Cadastro de Pessoas Físicas, the individual taxpayer identification number.
- Email address
- Mobile phone
- Under Beneficiary ID Type, choose either CPF or CNPJ and provide details.
With uLink, transfers incur a low fee of just $2.99, but when you send amounts over $400, you’ll pay $0 fees, every time. Simply pay using a bank account to unlock these savings.
If you’re hoping Pix technology goes global, we have good news: the Brazilian Central Bank has released its Pix protocols for Central Banks in other countries to copy free of charge.
While many nations will likely follow in Brazil’s footsteps, Uruguay and Colombia have already expressed their interest in implementing systems similar to Pix.
We’ll keep you updated on the latest payment trends as they emerge, as well as constantly refining the uLink platform with the most advanced technology.
Above all, we’ll continue delivering better exchange rates and lower fees, so you can support the people (and the places) you love most.