What is Pix?

Pix is an instant payment platform created and operated by the Central Bank of Brazil that enables real-time transfers in Brazilian real 24/7 with no fees for individuals. Launched in November 2020, Pix rapidly became Brazil's dominant payment method.

Pix handles diverse payment scenarios across the Brazilian economy:

• Person-to-person transfers between individuals
• Consumer purchases at retail stores and e-commerce sites
• Business-to-business supplier and vendor payments
• Government tax payments and benefit disbursements
• Bill payments for utilities, subscriptions, and services
• Peer-to-peer splitting of restaurant bills and shared expenses

As of May 2025, Pix had accumulated over 175 million users, including 160 million individuals and 15 million businesses. 93% of Brazilian adults use Pix, with 62% using it as their most frequent payment method. By the end of 2024, Pix accounted for 47% of all financial transactions in Brazil.

How Pix payments work

A Pix payment begins when the sender initiates a transfer through their bank app or digital wallet. The sender identifies the recipient using a Pix key - an alias linked to the recipient's bank account.

Pix keys can be a CPF number (individual taxpayer ID), email address, mobile phone number, or a randomly generated UUID. Companies use their CNPJ number (business registry ID). Individuals can register up to five keys per account, while companies can register up to 20 keys. Each key must link to only one account.

The sender enters the recipient's Pix key, amount, and optional message. Alternatively, the sender scans a QR code generated by the recipient. Dynamic QR codes include embedded transaction details for automatic reconciliation.

All transactions route through the Brazilian Financial System Network (RSFN), an encrypted communication system isolated from the internet and managed by the Central Bank. The system validates the transfer, debits the sender's account, and credits the recipient's account. Settlement occurs in real time, typically within three seconds.

Both parties receive instant confirmation. The transaction is final and cannot be reversed - Pix uses push payments only, not pull (debit) functionality.

For a detailed walkthrough of setting up and using Pix transfers, see our guide on how to transfer money to and within Brazil.

Pix processing times and costs

Pix delivers instant settlement with minimal or zero cost for most users.

Processing times:

• Settlement: Typically under 10 seconds, often within 3 seconds
• Availability: 24/7/365 including weekends and holidays
• Confirmation: Immediate notification to both sender and recipient
• No batch windows, cut-off times, or business day restrictions

Transaction costs:

• Individuals: Free for all person-to-person transfers
• Businesses: Average 0.33% per transaction
• Comparison: Debit cards cost 1.13%, credit cards cost 2.34%
• No joining fees, monthly minimums, or account maintenance charges
• Merchants often offer 10% discounts for Pix payments to avoid card processing fees

The cost advantage stems from eliminating intermediaries like acquirers, issuers, and card networks. Businesses receive funds instantly without the typical 1-2 day settlement delay of card payments.

Pix security and compliance

Pix implements multiple security layers to protect transactions and user data.

All Pix operations require multifactor authentication through the user's bank app, typically combining PIN, password, or biometric verification (fingerprint or facial recognition). Users cannot complete transactions without proving identity.

Transactions route through the Instant Payment System (SPI) and Transaction Accounts Identifier Directory (DICT), central systems managed by the Central Bank with end-to-end encryption. The RSFN network operates completely isolated from the internet, preventing external access.

Real-time fraud detection monitors unusual patterns including transaction spikes, abnormal hours, or suspicious recipients. Each participating bank runs additional fraud analysis layered on top of the national monitoring. Suspicious activity can be blocked before funds move.

All Pix transactions are fully traceable, enabling identification of accounts involved in fraud or criminal activity. The system complies with Brazil's General Personal Data Protection Act (LGPD), ensuring transparent data handling under strict banking secrecy laws.

Pix vs traditional payment methods

Pix competes directly with cards, bank transfers, and cash in Brazil's payment landscape.

Pix vs credit/debit cards: Cards require merchant processing fees of 1-3% plus interchange costs. Pix charges businesses an average of 0.33%, significantly reducing acceptance costs. Cards offer chargeback protection but create revenue uncertainty. Pix provides instant, irrevocable settlement - once confirmed, the money belongs to the merchant. Not all Brazilians qualify for credit cards due to income or credit requirements. Pix works with any bank account, expanding financial inclusion.

Pix vs traditional transfers (TED/DOC): Legacy Brazilian transfer systems take hours or days and often charge fees. Pix completes in seconds with no cost for individuals. Traditional transfers operate only during business hours. Pix processes 24/7 year-round.

Pix vs cash: In 2019, 43% of Brazilians used cash; by 2024 only 6% did, according to Google surveys. Pix eliminates the security risks and logistical challenges of carrying physical money. Street vendors, artists, and informal workers use Pix QR codes to receive instant cashless payments.

Pix Automático for recurring payments

In 2025, the Central Bank launched Pix Automático, enabling recurring payments with customer consent for subscriptions, bills, and memberships. This feature addresses Pix's original limitation of supporting only one-time transfers.

Pix Automático functions like direct debit but maintains instant settlement. Customers authorize merchants to initiate periodic payments. Each transaction still processes in real time with immediate fund availability. The recurring setup simplifies subscription services while preserving Pix's speed advantage over traditional billing cycles.

Customers control authorization through their bank apps and can revoke permissions at any time. This provides security similar to Pix's standard push payment model while enabling business models that depend on recurring revenue.

Common Pix use cases

Pix's instant settlement and universal accessibility enable diverse payment scenarios. Here's how individuals and businesses use the platform:

• Retail payments: Customers scan QR codes at checkout to pay instantly. During Black Friday 2024, Pix processed a record 239.9 million transactions in a single day, a 120.7% increase year-over-year. Physical stores offer discounts for Pix payments to avoid card fees.
• E-commerce transactions: Online shoppers complete purchases by scanning QR codes or copying Pix codes into banking apps. The instant confirmation eliminates the wait for payment clearing. Merchants receive funds immediately rather than waiting 1-2 days for card settlement.
• Social payments: Friends split restaurant bills by sending Pix transfers directly. Street artists display QR codes for instant donations. People give money to homeless individuals through Pix rather than cash.
• Business operations: Companies pay suppliers, contractors, and gig workers instantly. The 24/7 availability means payments process outside traditional banking hours. Businesses benefit from improved cash flow management with immediate fund access.
• Government services: Citizens pay taxes and fees through Pix. Government agencies disburse benefits and refunds instantly. The system streamlines bureaucratic processes and reduces reliance on cash-based transactions.
• Bill payments: Utilities, subscription services, and recurring bills use Pix for collection. Consumers receive payment requests through their banking apps and approve with one tap. The instant settlement eliminates late payment issues.

Pix's impact on Brazil's financial landscape

Pix has fundamentally reshaped Brazil's payment ecosystem. Traditional banks lost revenue from transaction fees and service charges, forcing them to enhance digital services and launch customer-centric solutions. Moody's estimates banks lost up to 8% of fee revenue.

The system drove financial inclusion by providing free banking services to previously unbanked populations. By December 2022, 71.5 million individuals who had never used electronic credit transfers before Pix's launch had adopted the system.

In 2023, Pix processed 42 billion transactions worth 17.2 trillion Brazilian reals (approximately $3.5 trillion USD). The platform's success inspired other countries to develop similar instant payment systems, with Italy considering implementation as of February 2024.

Pix's government-run model has attracted international attention. Nobel Prize-winning economist Paul Krugman praised Pix in July 2025, suggesting Brazil may have invented the "future of money" by achieving what cryptocurrency promised but failed to deliver.