Pix Evolution and Implementation slide image

Pix Evolution and Implementation

SUMMARY PRESENTATION IDEALIZATION EVOLUTION NUMBERS FUTURE Chart 3.4.5 - Evolution of Pix Participants' HH Index by value of transactions 0.0% nov jan mar may jul sep nov 2020 2021 jan mar may jul 2022 sep nov ■ Payer HHI Payee HHI Threshold (10%) Source: BCB 12.0% 9.6% Chart 3.5.1 Number of transactions Share by payment method 100% 17 80% 10 17- 60% 40% 32 30 33 36 8 10 9 7.2% 10 8 7 8 13 9 4 4.8% 2.4% 2020-Q1 26 23 23 20 20 2020-Q2 223 2020-Q3 20 26 27 2020-Q4 21 24 21 2021-Q1 7 24 755 2021-Q2 30 19 22 22 20 20 22 22 24 24 27 22 320 429 538 538 6 147 18 656 18 18 19 21 224 21 22 22 22 20 20 20 20 13 17 21 2021-Q3 2021-Q4 21 221 2022-Q1 19 199 19 20 20 23 27 23 2022-Q2 2022-Q3 ■ Pix Credit cards ■Pre-paid cards ■Debit cards Other eletronic transfers (TED, DOC, etc) Withdrawals Checks ■Billing instruments (e.g. bank slips) Source: BCB and CIP 30 30 2022-Q4 33 188 0% 20% receive payments through Pix 31 was 0.33% per transaction, relative to 1.13% for debit cards and 2.34% for credit cards, which demonstrates that Pix, in addition to being a means of payment that allows payees to receive funds instantly, it is also a less costly alternative for receiving payments (Chart 3.5.3). Chart 3.5.3 - Average cost for payees Pix, credit cards and debit cards 0.35% 2.25% 2nd Quarter - 2022 1.10% 0.33% 2.34% 4th Quarter - 2022 1.13% 3.5 Pix in the retail payments market Pix was created to fill several gaps in payment instruments available to the Brazilian population. The Pix characteristics chosen when designing it and the the adopted implementation strategy have contributed to its wide use., Right after its launch in November 2020, the number of Pix transactions exceeded those via DOC. In January 2021, Pix surpassed TED's usage, followed by Boleto (a type of bank slip regulated by the BCB). Pix reached 3.9 billion transfers in the last quarter of 2021 (Chart 3.1.1), representing the double the number of eletronic transfers, checks and boletos transactions all combined. Finally in the first quarter of 2022, with 4.3 billion transactions (Chart 3.1.1), Pix became the most used electronic payment instrument in Brazil, surpassing even credit and debit cards in terms of number of transactions (Chart 3.5.1). Due to the expressiveness of low value transfers through Pix, as explored in section 3.1, although representing 33% of total transactions in the retail means of payment 30, Pix accounted for 13% of the total value transacted in the last quarter of 2022. In contrast, TED (an electronic transfer operated by the BCB), still remains as the instrument with the highest financial volume transacted in the last quarter of 2022 (Chart 3.5.2). Chart 3.5.2-Value of transactions Share by payment method 21 22 21 222 LO 5 22 21 5 4 4 68 70 10 68 100% 21 21 20 20 20 20 19 19 18 19 18 3 3 3 3 3 2 2 80% 3 55 65 63 63 60% 62 62 40% 20% 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 67 65 67 69 2021-Q2 2021-Q3 2021-Q4 49 64 65 55 6 8 9 9 10 12 13 0% Credit cards 2022-Q1 Pre-paid cards 2022-Q2 2022-Q3 2022-Q4 ■Pix ■Debit cards Other eletronic transfers (TED, DOC, etc) Withdrawals Checks Source: BCB and CIP Billing instruments (e.g. bank slips) Source: BCB Pix Credit cards ■Debit cards 4. The Future of Pix 4.1 Evolving Agenda 2023 In addition to improving the Pix products already available, new functionalities and new products will be added in the coming years, promoting the continuous and permanent evolution of Pix to increasingly meet the payment needs of individuals, merchants and government entities. The goal of the evolving enhancement is to expand the use cases served by Pix and further leverage its use. Pix was created to allow any transfer or payment in Brazil be made through it. The products and functionalities expected to be developed in 2023 are detailed below. 30 The retail payment instruments considered in this report are: credit cards, debit cards, prepaid cards, collection agreement, boleto, direct debits (also known as direct debit and automatic debit), electronic transfers (DOC, TED, TEC), checks, withdrawals, intrabank transfers (transfers which both payer and payees are customers of the same institution) and Pix. One of the main factors for choosing Pix by payees (merchants and commercial establishments) is the low cost relative to other means of payment. Data from the fourth quarter of 2022 indicate that the average cost for merchants to 31 The criterion used to calculate the cost of Pix corresponds to the ratio between revenues from the charge of Pix payments received by merchants, informed by participants, and the total number of these transactions, registered in the BCB's internal systems and also declared by the participants. 27
View entire presentation