New Function Announced by Haddad, Called Pix Credit for 2023

The Central Bank (BC) Announced the Launch of the New Instant Bank Transfer Service, Pix Crédito, Expected in the Second Half of 2023. The Minister of Finance, Fernando Haddad, Highlighted the Initiative During a Meeting with the President of the BC, Roberto Campos Neto.

The new functionality aims to facilitate access to loans and financing for small businesses and individuals. Through Pix Crédito, users will be able to make instant and free bank transfers to other accounts, as well as pay bills and use credit cards and cryptocurrencies. 

Renato Aragon, associate director of the consulting firm Xsfera, explains that Pix Crédito has a solid foundation of fast payment and that the novelty is being discussed in forums of the Central Bank. “In practice, we know few things or have little expectation of what it will be like,” he says. There is still no official information regarding the matter.

Experts believe that this will be a cheaper credit alternative than those currently available in the Brazilian market. Currently, 77.9% of Brazilian families report having debts in 2022. With the rise of Selic to control inflation, credit has become more expensive in the country. The Lula government had already criticized this rate even before the announcement of the new functionality. 

Tiago Severo, coordinating partner of the banking practice at Caputo, Bastos e Serra Advogados, states that “it is not Pix that will provide the credit, but the bank through a credit contract.” He adds that the advantage is to eliminate intermediaries, allowing for cheaper transactions.

Bruno Samora, from Matera Consulting Group, emphasizes that retailers may have an advantage with this service as they will receive the amount immediately, unlike traditional cards which take a few days to clear in their accounts. Furthermore, users will find it easier to split payments for virtual and physical purchases with low operational costs.

Renato Aragon argues that this service could function as a traditional loan with lower fees, becoming a stronger competitor to credit cards. However, caution is needed as there may be undue charges when it comes to payment delays, as extremely high interest rates are charged by traditional cards (409.3% per year).

Some banks already offer a similar service called Pix Parcelado, through which users have access to lines of credit with interest charges but always focusing on preventing online fraud. Santander began offering this mode since March last year, while Itaú promises to launch it in April 2023.

With the Pix Crédito from the BC, Brazilian consumers gain more flexibility in payment methods and greater security for conducting online financial transactions, thus enhancing their digital experiences without fear or worries!

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