2020 was a year of adaptations and transformations in all global spheres due to the covid-19 pandemic. Alongside the political, economic crisis and the challenge of establishing social distance, the national financial system was not left out and had to adapt to the various changes, one of the main ones being the launch of Pix, the new Brazilian instant payment system.
We still do not know at what pace the market will adopt the new payment processing system, but for sure Pix is an element that contributes positively to the economy and the business environment in Brazil.
How does it work and how does it help companies?
Pix allows a shopkeeper or service provider to be able to charge and receive payment electronically, without the need for a machine or payment slip. The exemption of slips and payment machines will make Pix doubly advantageous in these cases.
First because it will be a cheaper way for companies and businesses to receive. Second, the deadline for receiving payment will be reduced. In other words, if Pix is chosen, the Central Bank must charge the financial institution R $ 0.01 to settle 10 Pix transactions, significantly less than the amount charged today to process and settle slips, TEDs and DOCs and even to process card payments. debit and credit.
In addition to Pix being available 24 hours a day, 7 days a week, payments made via Pix are available on account within 10 seconds after confirmation, even if it is made outside business hours, or on weekends and holidays.
This more modern and digital system will help to accelerate the average payment period for companies and, probably, increase the volume of working capital available
In this way, this more modern and digital system will help to accelerate the average payment period for companies and, probably, increase the volume of working capital available. Still for businesses, the fact that it is a payment arrangement with fewer intermediaries, should provide a reduction in transaction costs and greater competition for advances on receivables.
It is expected that e-commerces and other businesses that issue billets intensively will notice a decrease in billing costs and an improvement in the experience of their consumers at the time of payment.
The government, in its most varied spheres, will also use Pix as a recipient at first. This means that people and companies will be able to use this new payment system to pay fees and taxes, eliminating the use of payment slips and their digitizable lines, which often do not work, require manual input and can be subject to fraud.
Finally, for those who receive payments via Pix, the reconciliation of the transaction is greatly simplified: in the interval of up to 10 seconds, in addition to the recipient checking the financial compensation in his account, he has access to relevant information about the context of the transaction (example: payer, product / service breakdown). And this will make it possible to reduce time and automate the reconciliation part.
In the near future, Pix will also work with those who have sales concentrated in card and need to receive purchases in installments. This tool called Pix Scheduled is expected to reduce billing costs and increase competition for advancing receivables from companies. But that is a subject for another post!
Therefore, Pix brings together several elements that lead us to believe that it is here to stay and transform the way thousands of people and companies transact, most likely putting the bank slip and other forms of payment in disuse. Whether this will happen or not, only time will tell.
Paulo David, biweekly columnist of TecMundo, is the founder and CEO of Grafeno, fintech that offers digital accounts and electronic records infrastructure to companies and creditors; and is a partner at SPC Brasil in the construction of infrastructure for the financial market. Before Grafeno, he founded Biva, Brazil’s first peer to peer lending platform, which was acquired by PagSeguro, a means of payment company. He was superintendent of Sofisa Direto, the digital division of Sofisa bank. He worked on the Pinheiro Neto Advogados team, and on the investment manager KPTL (ex-Inseed Investimentos) team. He is an angel investor in fintechs in Brazil and Europe.