Pix’s new mode has the potential to be a strong contender for credit cards
The practicality of Pix has made it a real darling among Brazilians, replacing expensive TEDs and DOCs with a more efficient and cheaper infrastructure.
Now the Central Bank wants to continue the disruption by expanding Pix’s capabilities, allowing it to replace other forms of transactions. Can you guess what would be next?
When it comes to credit, according to a survey by Serasa eCred, 29% of Brazilians have five or more credit cards, with the aim of having more limits. To meet the needs of the population, Pix Garantido arrives on the market, an option that offers credit directly to the consumer, based on the analysis of the financial institution and allows you to make the purchase in installments.
In the new method, by making a Pix transfer, the user will be able to pay this amount in up to 24 installments. The name derives precisely from the guarantee given to the shop or to the person who receives the payment, that he will receive the money even if the payer runs out of balance.
For this, the intermediary institution authorized by the Central Bank itself will be responsible for debiting the user. And it is precisely at this point that we find even more similarities with the credit card.
A strong competitor to the credit card
Payments industry analysts are already charting possible advances and setbacks in the market acceptance map. While, to date, we’ve noticed that Pix has been contending for territory with debt, especially in e-commerce, there’s an expectation that it could win fans among credit card users.
But here another question arises: will it replace the credit card? Pix has great dominance in the online environment: according to the Neotrust survey, it has reached the historic milestone of 11% usage in online payments. Even so, physical cards continue to be widely used, which could indicate a coexistence between modalities.
According to Bruno Loiola, CGO of Pluggy, a fintech specialist in the acquisition and enrichment of Open Finance financial data, the new modality available represents a breakthrough for Brazilian Open Finance.
“Pix Garantido is already part of the Open universe and can be improved thanks to the possibility that the open ecosystem provides a more personalized credit analysis. That is, we have the possibility that the available limit is more compatible with the user’s financial reality, as well as having customized rates and conditions for him, which can increase adherence to the model, all this in addition to a drastic reduction in transaction costs today involved in the use of payment methods through credit and debit cards”, comments Loiola.
Another credit option for the user
Furthermore, Pix Garantido benefits all those involved in the transaction. For users, this means one more credit option on the market, which will increase their purchasing power and, consequently, bring about a drop in interest rates thanks to the competitiveness brought to the market.
For merchants, it is the possibility of evading the fees applied in card vending machines, the guarantee of receipt of their payments and the possibility of increasing the average receipt of their sales.
With this, the advancement of Pix can help the general public to have more faith in Open Finance, having the benefits of data sharing in the open ecosystem in their hands.
Therefore, forms of payment and credit will have more competition and consumers will have more possibilities and decision-making power in choosing how to control their finances.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
