Pix Evolution and Implementation

SUMMARY PRESENTATION IDEALIZATION EVOLUTION NUMBERS FUTURE Pix Withdrawal and Pix Change bring several benefits to everyone involved in the transaction: Users • More options. • More convenience. Retailers • Customer's inflow. Reduction of costs related to cash and banknotes handling. • Mitigation of security risks. 2.6 Pix Regulation Improvements 2.6.1 Partnerships and outsourcing The Pix Regulation was amended in December 2022 to give greater clarity to commands about Pix's operating rules. Among the main changes is the ban on outsourcing Pix initiation and receiving transfers services through an account provided by a third party that is not an institution participating in Pix. That is, the institution providing a transactional account that wishes to offer Pix to its customers must necessarily undergo the process of joining Pix, carry out homologation tests and an evaluation of the requirements for user experience. Situations where a third-party institution acts as a payment initiator, as stated in Resolution BCB 80 from 2021, and maintains a bilateral contractual relationship with a Pix participant allowing the initiation of transactions from the participant's account, were also prohibited. Those situations are not characterized as an outsourcing service because in order to act as a payment initiator, an institution is required to be authorized to operate by the BCB and hence be a Pix and Open Finance proper participant. Pix is constantly evolving and, during this process, the BCB monitors the various business models that emerge. The authority's role in defining the feasibility of alternatives for the provision of Pix seeks to ensure a higher level of security for users, maintain symmetry in the conditions of provision between participants and increase the transparency of information. Pix Participants • Expansion of the withdrawal network. • Withdrawal offering with lower costs. • Reduction of asymmetries when offering the service. Financial System • More competition . Additional option for those institutions that has withdrawal offering difficulties. • More presence through the national territory. •Saving costs related to cash and banknotes handling. INFOGRAPHIC 9 What are partnerships and outsourcing on Pix 1000( Partnership Relationship between Pix participants Outsourcing Relationship between a Pix participant and a private agent non-participant of Pix Any transactional account provider that wants to offer Pix to its customers must apply to be part of the Pix ecosystem, undergo homologation tests and be subject to evaluation of its requirements to the user experience. 2.6.2 Instant Payments Account Remuneration As of August 2022, the BCB instituted remuneration on the daily balance of the Instant Payments Account (IP Account), to be calculated based on the Selic Rate. The IP Account is the account held by a Pix participant, maintained at the BCB, to facilitate transfers between different institutions within the scope of Pix. The IP account remuneration is an important measure to minimize the liquidity cost of institutions in maintaining funds to make Pix transactions viable, as well as leveling the opportunity costs for the different profiles of participants. Within the working hours of the systems that provide liquidity for Pix (Monday to Friday, from 6:30 am to 6:30 pm), access to funds is free of charge. Outside these systems' operating hours, the sources of liquidity available are basically the use of the electronic currency balance collected, the reserve requirement on demand deposits and the access to a specific liquidity line, subject to interest bearing costs, with the latter two being available only for Financial Institutions. Institutions without access to these sources, such as payment institutions, which do not receive demand deposits and cannot access the specific liquidity line, as well as smaller financial institutions, which do not reach the volumes required to collect reserve requirements on cash funds, had an additional opportunity cost in allocating funds to give Pix liquidity. With the remuneration of the IP Account, the opportunity cost of institutions to maintain funds to provide liquidity to Pix was reduced and equalized, democratizing access to liquidity sources for all Pix participants. New Pix use cases by government entities In 2022, Pix use cases grew even more with the Federal Revenue using the arrangement to refund income tax to taxpayers and the Electoral Justice to remunerate poll workers who worked during the elections. The National Treasury Secretariat also began, in 2022, to make payment of obligations, within the framework of the Federal Executive Branch, through Pix. 2.7 Communication and Education - Pix contribution to financial citizenship The integrated communication strategy was a critical factor for the success of Pix and for its rapid adoption by society. Pix's presence in the most diverse social and economic contexts requires perpetuity and multiplicity of communication actions with informative and educational purposes so that society reaches the desired level of knowledge and maturity in relation to the use of Pix and its benefits, the initiation forms, scam prevention and the various aspects that contribute to awareness and better use of Pix's features. There were many initiatives throughout 2021 and 2022. The most relevant are detailed in this section. 16

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