Pix Evolution and Implementation slide image

Pix Evolution and Implementation

SUMMARY PRESENTATION IDEALIZATION EVOLUTION NUMBERS FUTURE R$ Payee (business) INFOGRAPHIC 5 Future dated payments Generates future dated QR Code (either unique or batch payments) and make it available to the payer. It allows for including discount rules or interest due calculations, fines and charges. GYA Payer Scans the QR code or make use of the Pix Copy and Paste through his/her trusted institution's app, choose the payment future date, authenticates and confirms the transaction. Funds availability Funds become available in the payee's account on the same day and, depending on the situation, merchants can dispatch a selling product or write off the payment for a service. 2.2 Future dated billing Since July 2021, it is possible to generate billing charges with future due dates on Pix, also allowing for the automatic calculation of any additional amounts (such as interest, fines, discounts and rebates) applicable on the actual payment date. Payment of past due charges are initiated by scanning a QR Code or by entering the corresponding code through Pix Copy and Paste. After this action, the billing data is instantly available to the user, who can choose whether to make the payment instantly or by scheduling the payment for a future date. If the latter option is chosen, the payer receives information on any interest, fines, discounts and rebates, depending on the chosen date. The payee's benefits in using Pix for receiving payments, relative to the traditional billing procedure, are the fees charged (typically lower) and the elimination of deadlines for receiving funds. For payers, the main benefit is the payment experience, which is easily initiated by scanning a QR Code or Pix Copy and Paste, without the need to scan or type the barcode. 2.3 Security measures Even before the beginning of Pix's development, the issue of security had been already a fundamental pillar. With a specific thematic working group dedicated to the topic, which brings together several experts from Brazil in financial transaction security, Pix was built with a robust security framework. In addition to innovating in user experience, speed and availability, Pix features exclusive layers of protection, such as fraud markers, and solutions that are already present in other means of payment. Given that new types of fraud and scams frequently emerge, the BCB sees security as a dynamic and a continuous discipline. As a result, the BCB acts permanently to ensure the maintenance of Pix's high level of security. Action takes place on multiple fronts, including extensive dialogue with agents involved and with specialists in security; timely monitoring and updating of Pix regulation and infrastructure; and user education and awareness on cybersecurity and measures for the safe use of Pix. Thus, in these first years of operation, new mechanisms and functionalities were incorporated, aiming to expand the protection of the ecosystem. These mechanisms and functionalities are detailed in the subsections below. 2.3.1 Limits on transaction values Institutions that provide Pix must offer their customers functionalities that allow them to consult and manage the value limits of Pix transactions. Throughout the 2021/2022 biennium, functionalities and rules were created aiming at improving the user experience in managing limits through applications. The main measures are listed below: • • • mandatory availability of the Pix limit management functionality in the apps and digital channels of participants, allowing the limits increase and reduction requests to available by period (during the day or night), including for Pix Withdrawal or Pix Change transactions; definition of a minimum period of 24 hours for attending requests to increase limits; registration of specific counterparty's accounts with pre-defined limits; establishment of a standard limit of R$1,000.00 for transactions between individuals during the night (between 8pm and 6am), with the option of offering an additional functionality that allows the Pix user to set the night limit beginning at 10pm, according to the user's choice; limits for individuals and merchants payees became independent from limits on transactions with the purpose of withdrawal or change; increase in limits for Pix Withdrawal and Pix Change, at the discretion of each withdrawing agent, with the aim of adapting them to the limits usually available at ATMs for traditional withdrawals; and removal of merchants from the scope of the rules, since competition already resolves the definition of limits for companies. 2.3.2 Precautionary blocking Launched in November 2021, precautionary blocking allows the institution where the individual payer maintains his account to pre-emptively block the funds received for up to 72 hours from the credited time, in the event of a suspected fraud, in order to carry out a more robust anti-fraud analysis. The funds are set free only after the institution assures that the transaction is accredited. If the fraud is confirmed, the payee's institution must return the funds to the paying user who was the victim of the fraud. Payer's trusted institution proceeds with the payment on the chosen future date. 12
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