In just three years, Pix has ascended to dominance in Brazil, reshaping consumer behavior and payment methods across the country. Surpassing traditional payments like cash and bank transfers, and even challenging credit cards in e-commerce, Pix has become the preferred method for millions of Brazilians.
The rise of Pix in E-commerce
Pix’s impact on online retail is significant. According to Neotrust, Pix transactions in e-commerce rose by 22 percentage points in two years, capturing over a third of all purchases by December. An Ebanx study predicts that Pix will account for over 40% of Brazil’s online transactions by 2026. This rapid adoption is transforming how Brazilians shop online, providing a cost-effective, convenient, and secure payment option.
Open Finance and Pix: A winning combination
The success of Pix is being bolstered by the advent of Open Finance in Brazil. This model, which promotes the integration of financial systems, is making Pix even more accessible and efficient. Through “Pix via Open Finance,” users can initiate payments directly from their bank accounts without the need to navigate multiple steps like copying and pasting QR codes. This seamless integration is particularly beneficial for industries where secure and swift transactions are crucial, such as the growing online gaming sector.
Pix and the online gaming industry
The online gaming market in Brazil is booming, with revenue projected to reach €1.80 billion in 2024. This growth is driven by the popularity of sports betting and the general rise of iGaming. The new regulatory framework, approved by the Brazilian Chamber of Deputies in December 2023, aims to ensure transparency, consumer protection, and strict oversight, making Pix via Open Finance an ideal payment method for the industry.
The evolution of payment methods in Brazil
Before Pix, credit cards were the dominant online payment method in Brazil. However, the advent of Pix in late 2020, accelerated by the COVID-19 pandemic, has dramatically shifted this landscape. By 2023, Pix transactions had nearly doubled those made with credit cards, and its use continues to grow. The benefits of Pix-cost-effectiveness, instant settlement, and strong authentication—have made it a preferred choice for consumers and merchants alike.
Payment trends in iGaming
In the iGaming sector, Pix has become the dominant payment method, preferred by 81% of surveyed gamers according to ENV Media. This preference is driven by Pix’s suitability for micro-transactions, its ease of use, and its security features. Speed and security are paramount for gamers, and Pix delivers on both fronts, ensuring quick and secure transactions.
Regulatory compliance and payment innovations
The new regulations introduced in April 2024 set clear guidelines for payment transactions in sports betting, emphasizing the importance of secure and efficient payment methods. Pix via Open Finance meets these requirements by offering a streamlined, secure, and regulation-compliant payment process.
Benefits of Pix via Open Finance for iGaming
Pix via Open Finance offers several advantages for the online gaming industry:
- Improved Conversion Rates: By eliminating the need for users to switch screens and copy QR codes, Pix via Open Finance enhances the user experience, particularly on mobile devices, leading to higher conversion rates.
- Speed: Instant transactions are crucial in gaming. Pix via Open Finance enables quick payments directly from the user’s phone, without additional steps.
- Enhanced Security: With authentication through the user’s bank account, Pix via Open Finance reduces the risk of fraud and enhances security.
- Regulatory Compliance: It ensures adherence to the latest regulatory standards, simplifying compliance for operators.
Future innovations: The non-redirect journey
A new development, the “non-redirect journey,” is set to further revolutionize Pix payments. This feature will allow users to make transactions without being redirected to their bank’s app, simplifying the payment process and enhancing user convenience.
Conclusion: Empowering Brazil’s iGaming sector
Pix via Open Finance is transforming the iGaming sector in Brazil, offering a secure, fast, and user-friendly payment solution. This innovation not only enhances the user experience but also ensures compliance with stringent regulations, making it an ideal choice for operators. As the industry continues to grow, Pix via Open Finance stands out as a crucial tool for achieving success in Brazil’s dynamic financial ecosystem.
