Pix is Brazil's instant payment system, launched November 2020 by the Banco Central do Brasil. It settles transactions in central bank money within seconds, 24/7, using addressable aliases (CPF, phone, email, or random key). Pix is mandatory for licensed financial institutions of meaningful size and free for individuals - driving near-universal adoption.
Pix Keys, the DICT directory, the QR code formats, and the regulatory choices that drove rapid adoption.
Addressing via Pix Keys
Senders address a payment using a Pix Key rather than account number. Keys can be a national ID (CPF/CNPJ), phone, email, or random UUID, mapped to the recipient's institution and account in the central DICT directory operated by the central bank.
Settlement model
Pix settles in central bank reserves, individually, in real time. Participating institutions pre-fund their settlement position. Target completion is under 10 seconds; in practice the median is closer to 3 seconds.
QR code variants
Static QR codes encode a fixed Pix Key and merchant data and can be reused. Dynamic QR codes encode a one-time amount and reference, generated per transaction by the merchant's PSP.
Pix Automático and Pix Garantido
Pix Automático (launched 2025) introduces recurring direct-debit-style authorization. Pix Garantido (planned) introduces installment payments, encroaching on traditional card economics.
Frequently asked
Is Pix free?+
Yes for individuals. The central bank permits institutions to charge merchants and high-volume corporate users.
Why did Pix scale so fast?+
Central-bank mandate for major institutions, free P2P, simple alias-based addressing, and 24/7 availability.
Sources & References
- Banco Central do Brasil - Pix Documentation
- U.S. Federal Reserve - Payment Systems Overview
- NPCI - UPI Product Overview
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