The cross-border payments potential of Pix
- Pix, Brazil’s central bank-backed instant payments system, has become highly successful since its launch in 2020.
- A new FXC Intelligence report analysed the growth of Pix and its cross-border potential.
- According to FXC Intelligence data, inbound consumer remittances into Brazil grew by 21% in 2022, which suggests that cross-border consumer payments could be a huge and growing potential market for the instant payments system.
An FXC Intelligence report, published today, assessed the growth and future cross-border potential of Pix, an instant payments system owned and regulated by Banco Central do Brasil (BCB), Brazil’s central bank.
Since its launch in 2020, Pix has been highly successful, surpassing 160 million users, and has enabled billions of transactions, transferring more than a trillion Brazilian reals every month. For context, Brazil’s population over the age of 15 totalled around 171 million in 2022, highlighting how ubiquitous the app has become.
Pix’s current user base is still primarily made up of consumers, who are making the majority of transactions on the platform.
According to FXC Intelligence data, inbound consumer remittances into Brazil grew by 21% in 2022, suggesting that cross-border consumer payments could be a huge potential market for the instant payments system.
However, Pix is not currently able to enable instant cross-border transfers through its infrastructure. Various fintechs, such as PagBrasil, have filled the gap by enabling Pix payments to merchants based in other countries through their own infrastructure. Sending money to recipients in Brazil via Pix is possible from other countries but requires the assistance of specialised payment providers, such as Wise, Paysend and Remitly.
The BCB is considering agreements to connect Pix with similar instant payment platforms in other countries, including expressing an interest in Nexus – a project being spearheaded by the Bank for International Settlements to develop a platform that will enable instant payments platforms around the world to connect with each other.
Joe Baker, Senior Copywriter and author of the report, said:
“Taking Pix cross-border seems to be a natural progression for the platform. It could help align with Brazil’s ambitions to reduce the power of the US dollar over its economy; streamline payments for Brazilian travellers and tourists in other countries; and grow B2B payments in and out of the country, as well as being highly beneficial for people sending and receiving remittances.
“FXC Intelligence will be monitoring the progression of Pix cross-border initiatives closely, although with other domestic projects more immediately in the pipeline, this is unlikely to happen any time soon.”
To read the report in full, click here.
Further information
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Kezia Johnson
External Communications and Branding Manager
kjohnson@fxcintel.com