In Brazil, modern commerce runs on Pix. It’s what people use to split dinner bills, pay rent, shop online, and move funds between businesses. In 2024, Pix processed approximately 64 billion transactions, a year-over-year increase of 53%. It’s faster than direct debits, cheaper than card payments, and accessible to people who can’t access traditional finance. Below, we’ll explain what makes Pix so effective, how it works, and why it’s reshaping payments across industries.

What’s in this article?

• What is Pix, and how does it work?
  
• Why is Pix more popular than credit and debit cards in Brazil?
  
• Can businesses use Pix for B2B payments?
  
• What security measures does Pix use?
  
• How does Pix benefit ecommerce and subscription businesses?
  
• Who regulates Pix, and what are the compliance requirements?
  

What is Pix, and how does it work?

Pix is Brazil’s real-time payment system, created by the Central Bank of Brazil (BCB) to move money instantly between people, businesses, and government entities—24/7. It’s offered by nearly every financial institution in the country. There’s no separate app or special sign-up needed for Pix. If you have a bank account in Brazil, you probably already have access to Pix.

With this system, money is transferred using identifiers called Pix keys. A key can be your phone number, email address, national ID (i.e., CPF or CNPJ), or a randomly generated code. Once someone has your Pix key, they can pay you without needing to enter your bank account details. Businesses often display a QR code linked to their Pix information, so customers can pay by scanning it.

To pay, the customer opens their banking app, selects Pix, and enters a Pix key or scans a QR code. The app prompts them to enter a biometric or personal identification number (PIN) confirmation. The money moves directly from one account to another, within seconds. Both sides receive real-time confirmation.

People in Brazil use Pix to pay rent, buy groceries, send money to friends, donate to charities, pay freelancers, and more. Businesses of all sizes, from corner stores to enterprise-scale firms, use it to get paid immediately.

Why is Pix more popular than credit and debit cards in Brazil?

Pix launched with a structural advantage: all large banks and fintechs were required to offer it. That meant national coverage from day one. Within two years, 140 million Brazilians had used Pix. Customer expectations for businesses shifted: street vendors, utilities, ecommerce platforms—if a business accepted payments, they needed to accept Pix.

Now, Pix is the most-used payment method in Brazil, outpacing credit and debit cards. Beyond the requirement that financial institutions offer it, here’s a closer look at the features that make Pix such a popular choice.

Transaction speed

Pix works quickly. Customers can complete purchases quickly, and businesses receive the funds instantly. This is especially helpful for small businesses that rely on daily cash flow.

Easier checkout

Pix eliminates one of ecommerce’s biggest friction points: card entry. There’s no need to fill out an online form or risk a card getting declined. Instead, the customer scans a QR code or copies a Pix code, then confirms in their bank app. Businesses can see higher conversion and fewer abandoned carts.

Lower cost

Card payments in Brazil often come with steep fees. With Pix, there’s no card network, no interchange fee, and no acquirer taking a cut. For most businesses, costs are a flat fee or nothing at all, depending on their provider. That difference directly improves margins, especially for low-ticket transactions where card fees hit hardest. It also helps businesses offer better prices or discounts for Pix, which reinforces adoption.

Inclusivity

Not everyone in Brazil has a credit card. Many people don’t qualify, or they choose to avoid them due to high interest rates. Debit cards require a formal bank relationship, which isn’t always available to lower-income or informal workers (i.e., those who get paid off the books).

Because Pix works with any bank or fintech account, it has a much larger pool of potential customers. It doesn’t require a credit score, and it’s free to use. This accessibility has brought new users into Brazil’s digital economy, many for the first time.

Public trust

Pix was developed and is operated by the Central Bank of Brazil (BCB). This gave Pix a level of institutional trust from the start, reinforced by the government’s own adoption of the system for tax collection, benefits distribution, and more. The idea of Pix as national infrastructure helped normalize it for everyday transactions. Customers were using the same payment method that their government, bank, and employer used.

Can businesses use Pix for B2B payments?

While Pix was first used for person-to-person (P2P) and business-to-consumer (B2C) transactions, it’s a useful tool for business-to-business (B2B) payments as well. Businesses can send and receive high-value transfers via Pix. Companies use Pix to pay suppliers, contractors, and even employees in real time.

Paying suppliers

Instead of issuing a Boleto voucher, scheduling a bank transfer, or writing a check, businesses can pay suppliers directly via Pix—on demand, 24/7. A retailer short on inventory can settle with a wholesaler in seconds, not days. That kind of responsiveness can strengthen supplier relationships and prevent fulfillment bottlenecks. Both parties receive confirmation immediately, so there’s no need to guess whether a wire transfer went through or chase down unpaid bills.

Running payroll

Businesses use Pix for salaries, as well as issuing refunds. With Pix, employees get paid instantly, and companies reduce processing time and transaction costs. This is especially useful for paying gig workers, freelancers, or anyone outside a traditional payroll cycle. A contractor finishes a job, and the business can pay them right away, even if it’s a weekend or holiday.

Reconciling payments

Because Pix is a push payment with instant confirmation, it’s easy to match payments to invoices and reduce uncertainty. Many businesses use static QR codes or structured payment requests with embedded invoice references, which automate reconciliation and improve recordkeeping.

Integrations

Payment providers such as Stripe support Pix in their application programming interfaces (APIs), which means businesses can send or receive Pix transfers at scale using familiar tools. If you’re paying Brazilian vendors or contractors from abroad or collecting payments from Brazilian customers, Pix is probably the fastest and most cost-effective option.

What security measures does Pix use?

As Pix adoption has grown, so has its fraud prevention infrastructure. The result is a real-time system that’s fast, flexible, and secure.

Here are the security measures Pix has in place.

Central Bank encryption and monitoring

Pix runs on infrastructure operated by Brazil’s central bank. Every transaction is encrypted end-to-end and routed through central systems—namely a settlement infrastructure known as the Instant Payment System (SPI) and an alias database called the Transaction Accounts Identifier Directory (DICT)—which are designed for high availability and real-time fraud detection. Unusual transaction patterns, such as spikes in volume, abnormal hours, or suspicious recipients, are automatically flagged across the network.

Each participating bank or fintech business also runs its own real-time fraud analysis, layered on top of this national monitoring. Suspicious activity can be paused or blocked before funds are moved.

Strong customer authentication

Every Pix payment is initiated by the user and requires multifactor authentication, which is usually a combination of PIN, password, or biometrics. You can’t complete a Pix transaction without proving your identity through your bank’s app.

This model sharply reduces unauthorized payments. Even if someone gains access to your phone or account credentials, they still need to pass your bank’s authentication layers.

Limited exposure of personal information

Pix keys function as proxies for account details. If you give someone your email or phone number as a Pix key, they can send you money, but they won’t see your full account number or branch code.

When you initiate a payment, your app will show the registered name of the recipient before you confirm. If the name doesn’t match who you meant to pay, you can cancel before sending.

Transfer limits

To protect users from account takeovers or coercion, the BCB requires Pix providers to set default limits, particularly for nighttime transfers and payments from unrecognized devices.

New or unregistered devices often have daily caps, such as 1,000 Brazilian real (BRL) total. Nighttime Pix transfers might be restricted by default, though users can opt out. Businesses can also request higher limits for high-value B2B use.

Dispute resolution

Pix payments are designed to be final. But the BCB created a mechanism known as the Special Return Mechanism (MED), which allows banks to reverse funds if there’s strong evidence of a scam or user error. It’s an essential backstop that helps banks protect their users without undermining confidence in the system.

Pix uses real-time fraud detection, strong user authentication, encrypted infrastructure, transfer controls, and a regulated safety net. Like any widely adopted platform, it’s a target, but it continues to evolve to meet new threats.

How does Pix benefit ecommerce and subscription businesses?

Pix is quickly becoming essential infrastructure for online businesses in Brazil. From faster checkouts to lower costs and real-time settlements, Pix brings tangible advantages to both ecommerce and recurring billing models.

Here’s where those benefits show up.

Stronger conversion

With Pix, there are no card numbers to type, there’s no risk of a declined payment, and there’s no redirect to a third-party gateway. Shoppers scan a QR code or copy a code into their bank app, confirm, and they’re done.

Adding Pix can mean fewer abandoned carts and higher conversion, especially among shoppers who don’t use credit cards.

Instant settlement

Card payments can take days to settle. Pix payments clear in seconds. That real-time flow of funds helps businesses restock inventory, manage delivery costs, or meet payroll, without waiting for acquirer payout schedules.

During peak sales periods, that immediacy can make a big difference.

Lower fees and no chargebacks

Compared to credit cards, Pix transactions are much cheaper to process. There’s no card network, no interchange fee, and no acquirer markup. Most businesses pay a flat, low fee (or nothing at all), depending on their bank or payment provider.

Since Pix is a push payment, chargebacks aren’t a concern. Once the money arrives, it’s yours. That makes revenue more predictable, especially in industries where card or chargeback fraud can eat into margins.

Access to more customers

Not every Brazilian shopper has a credit card. Pix gives these customers a secure, familiar way to pay online. It also brings in people who use digital wallets or fintech accounts rather than traditional banks.

If your online store only accepts cards, you’re limiting conversion.

Recurring payment capabilities

Originally, Pix was designed for one-time payments. But that’s changing. In 2025, the Central Bank rolled out Pix Automático, which enables recurring payments (with customer consent) for subscriptions, bills, and memberships.

This means businesses with repeat billing cycles can offer Pix without relying on manual monthly reminders or hoping customers follow through. It behaves more like a direct debit, but with faster settlement.

Built-in reliability

Pix payments are confirmed instantly. The payment status is clear for the business and the customer, which reduces support overhead and missed deliveries.

Pix gives online businesses better reach, faster revenue recognition, lower costs, and stronger reliability.

Who regulates Pix, and what are the compliance requirements?

Pix is operated and regulated by the BCB, which oversees its rulebook, infrastructure, and compliance standards. Participation is mandatory for large financial institutions.

Here are the compliance requirements for participants.

Device registration and transaction limits

Under BCB Normative No. 491, transactions from unregistered devices are limited to 200 BRL per transaction and 1,000 BRL per day. This measure aims to prevent fraud from unauthorized devices.

Tax ID verification

Financial institutions must verify that Pix keys correspond to valid individual (CPF) or business (CNPJ) tax IDs. Keys linked to inactive or irregular tax records must be removed to prevent misuse.

Institutional requirements

BCB Resolution 429 states that all Pix providers must:

• Align accounting and auditing practices with BCB standards
  
• Report customer data to the National Financial System Customer Registry (CCS)
  
• Submit daily balance and credit transaction reports to the BCB
  
• Maintain a minimum net equity of 5 million BRL, starting January 1, 2026
  

Anti-money laundering (AML) and Know Your Customer (KYC)

All Pix participants must adhere to Brazil’s AML and KYC regulations, which ensure that users are properly identified and transactions are monitored for suspicious activity.

Data privacy compliance

Pix operations must comply with Brazil’s General Personal Data Protection Act (LGPD), which safeguards personal user data and requires transparency in data handling.

These comprehensive regulations make Pix a reliable and widely accessible payment system in Brazil.