International Pix: instant payment between countries
04/11/2022Check out what we know so far about international Pix. New function of instant payment method is under development and can connect to Nexus.
International Pix is still under development. But the success of Pix, launched in Brazil in November 2020 and one of the most popular online payment methods in Brazil, has already crossed borders. Pix, a global reference in instant payments – even drawing attention in Colombia and Canada – can soon connect to the national systems of other 60 countries through Nexus. The new Pix function promises to revolutionize how we make international online payments and can also be used for cross-border e-commerce. Keep reading and learn everything about Pix payment method: is it international? What is the relation with Nexus? Can FedNow and Pix interact?
Is Pix international? Which countries have already adopted an instant payment system?
The technology for International Pix is still under development by the Central Bank of Brazil, which hasn’t yet announced its official launch date. Roberto Campos Neto, Governor of the Central Bank of Brazil, announced in November 2021 – when Pix completed 1 year – that the Bank was already working on enabling instant international transactions and offline operations.
Currently, around 60 countries have their own instant payment systems already in operation or under development, either by private initiative or the government. Examples include: Transferencias 3.0 implemented by the Central Bank of Argentina (BCRA), Transfiya in Colombia and CoDi (Cobro Digital) in Mexico. In the UK, Faster Payments has been operational for over 10 years. In Australia, the New Payments Platform (NPP) functions similar to Pix: allowing transactions in seconds on a 24/7 basis. In Asia, the Chinese have been using the Internet Banking Payment System (IBPS) since 2010, while India saw its unbanked population dwindle sharply with the Immediate Payment Service (IMPS) and the Unified Payments Interface (UPI). Similar to Pix, instant payment systems have been consolidating their presence strongly within the countries, but still do not connect to each other in order to offer international instant payments.
Fednow: the “U.S. Pix”
People in the United States can already use instant money transfer apps such as Venmo (acquired in 2013 by PayPal) and Zelle, operated by a private subsidiary of the country’s leading banks and, therefore, integrated to their apps. But a new alternative is nearing launch: FedNow, an instant payment service offered by the Federal Reserve, is expected to be launched in mid-2023. More than 120 financial institutions have already joined the FedNow Pilot Program, which – like Pix, is aimed at expanding the reach of instant payments to consumers and companies across the country. Like Pix, FedNow is available 24/7.
International Pix: Nexus being tested in over 60 countries
When the subject is instant payments, Nexus is a name that has aroused tremendous curiosity and expectations, mainly among those wanting to know if Pix is international. Nexus is an alternative for international instant payments, being developed by the Bank for International Settlements (BIS), which has 63 central banks as its members, including the central banks of the United States, England, Mexico, India, Colombia, Canada, Argentina and Brazil. All these countries already have, are developing or, at least, have shown interest in having their own instant payment system. Hence, Nexus would be one way of connecting them all.
There is still no launch date for Nexus, or any concrete information about how it will function for companies and consumers, or rates and taxes. However, if we observe the example of Pix for companies in Brazil, there is a strong probability of reduction in costs for international transfers and payments. The project – defined by BIS as “a model for cross-border instant payments” – is now being tested in countries, such as Uruguay, Malaysia, Singapore and Italy, without any money circulating through the platform. Its launch requires a coordinated effort from IPS operators, banks and payment service providers (PSPs), as well as the definition of a governance model that includes system supervision and specification, taking into account legal differences between jurisdictions.
Pix payments for companies: what is necessary to make cross-border sales around the world?
Anticipating e-commerce trends for the coming years in Brazil also includes adopting online payment solutions that meet the needs of this public. For a cross-border virtual store targeting the Brazilian public – which numbers over 200 million consumers –, offering Brazil digital payments like Pix is a strategic decision to be competitive. Don’t wait for the launch of Nexus: with Bexs Pay as a PSP Payment Processor , your e-commerce can accept Pix, bank payment slips (boletos), and local credit cards through different types of integration with your e-commerce platform. Choose an online payment system without borders. Explore our Payin and Payout solutions integrated with Pix!