Pix Garantido, which will be launched by the Central Bank until next year, according to the institution itself, will have lower interest rates than credit cards, which accumulate 370% per year.
Pix, the main means of transferring values and payments in the country today, with more than 128 million registered users until May, will gain a new modality that, according to experts, becomes a threat to credit cards.
The Pix Garantido, which will be launched by the Central Bank until next year, according to the institution itself, will have lower interest rates than credit cards, which accumulate 370% per year.
Pix Garantido will allow in-person and virtual purchases to be paid in installments, as with a credit card. This modality, according to the Central Bank, needs a qualified financial institution to intermediate the transaction.
This institution will ensure that payment is made on the scheduled date if the user’s account does not have sufficient balance.
According to economist and investment consultant Jorge Eloy, Pix Garantido is yet another instrument that provides agile and simplified credit. “Pix’s agility and practicality contribute to the reduction of interest on credit, which is good for all credit borrowers”, he says.
The economic adviser of the Regional Council of Economy of the State (Corecon-ES) and economist Sebastião Demuner, highlights that with the new modality, the use of credit cards will be gradually reduced.
“These are transformations that are made over time. With this Pix trend, cards are going to be used less and less. In some banks, it is already possible to use the virtual card, through the mobile application. There is a tendency to run out of paper money and physical credit cards”.
The new Pix Garantido function aims to expand the use of the tool, optimizing the payment and receipt process between companies and customers.
The financial institution will provide a line of credit to the consumer, known as a limit amount, and this amount can be used both in cash purchases and in installment purchases.
A solution similar to the credit card, but the difference is that there is no need for the physical card and will be much more agile.
How will the new service work?
– It will be the first credit function of the tool, which has more than 128 million registered users until the month of May.
– The user who wants to make a payment can make an appointment in the Pix Guaranteed mode, through their banking application.
– The bank does an analysis to check if the user has enough credit limit to make the purchase and confirms.
– When the payment date arrives, the bank, which operates as this intermediary institution, will debit the balance.
– If the user does not have a balance, he automatically starts to pay interest until the debt is zeroed.
– It will have lower interest than physical credit cards.
– Some banks already offer credit to their customers for use in payments via Pix.
– Payment in installments is also instantaneous, without the need to wait a period for invoicing, allowing the merchant to receive the money immediately.
– Unlike some credit cards, there is no need to wait a period of time to use the feature after credit approval. That is, just request the function and use it whenever you want up to the available limit.
– The new functionality will also be very useful for small entrepreneurs, as it will be possible to pay for purchases in installments without having to pay card fees.
– Retail trade will gain new customers, who still do not have access to credit, reaching up to a 15% increase in sales in installments.
– In the same way as it works with the credit card, establishments will be able to make the purchase in installments with or without interest.