EBANX, a fintech company that specializes in international payments in rising markets, has been authorized by the Central Bank of Brazil (Bacen) “to offer a payment initiator service through Pix.”
The PISP (Payment Initiation Service Provider) license “expands the range of services the global payments giant, a direct participant of Pix, is able to offer to its customers.”
As a payment initiator, EBANX is now “making the service available to more than 500 merchants so their online shoppers in Brazil can make payments using Pix within their own website or e-commerce app without needing to obtain their own initiator payment license from the Central Bank of Brazil.”
Launched in late 2020, the Pix instant payment system “created by Brazil’s Central Bank is already used by about 75 percent of Brazilians and has accelerated digital payments and financial inclusion across Brazil.”
The new feature will “make Pix payments in e-commerce smoother and safer for millions of Brazilian consumers by providing them with a seamless experience in the payment journey and letting them make payments more affordably and in less time.”
Erika Daguani, Vice President of Product at EBANX, said:
“As a payment initiator, EBANX can now streamline the payment process, reduce friction and increase transaction security, and the user no longer needs to leave the store’s website or app, log into a bank’s app or worry about copying and pasting the QR code and checking that everything is correct. Payment with Pix in digital commerce is much more smooth this way.”
In addition to the pros for the end user, the payment initiator service through Pix also benefits companies selling online “by increasing customer retention and conversion rates.”
Data from the latest EBANX’s Beyond Borders 2022/2023 study “shows that Pix already accounts for more than 16 percent of total e-commerce sales volume in Brazil.”
Daguani added:
“Pix as a payment initiator is another example of the Central Bank’s focus on improving the user experience and usability of Pix, and it is great progress for Brazil’s alternative payments industry. We are very happy to offer this service to our merchants and promote access to real-time payments in an easy and secure way to millions of consumers.”
Created by Brazil’s Central Bank as part of the open banking agenda, the payment initiator license authorizes companies “to initiate payments and transfers via Pix for online purchases, with the aim of simplifying the consumer journey and reducing the number of payment steps. Only about 20 institutions are now licensed to offer the service.”
The new payment initiator capability “lets online shoppers pay for purchases with Pix directly from the e-commerce website or app, with no need to access the bank’s app to make the payment.”
By choosing to pay with Pix, the transaction is “initiated by the company itself – in this case, through the EBANX software platform– and instead of scanning or copying the QR code and accessing the bank app to complete the payment, the customer is automatically directed to the authentication screen of the bank app.”
Once authenticated, the transaction is “completed and the customer returns to the store’s website or app.”