On February 28, 2025, Brazil officially launched its latest payment innovation: the Pix proximity payment system, which allows users to make financial transactions without the need to enter their bank passwords. This new feature, mandated by the Central Bank of Brazil (BC), aims to streamline and expedite payments using Near Field Communication (NFC) technology. Currently, this service is available exclusively for Android mobile devices.
With the Pix proximity payment system, customers can simply tap their smartphones against compatible card machines to execute payments. This replaces the traditional requirement of scanning QR Codes or manually entering transaction details. Instead of complicate steps, payments online will be finalized with just one click directly on the merchant's website.
The implementation of this feature allows transactions of up to R$ 500, but users have the option to set lower limits for individual payments and daily transactions. The expectation is based on previous trends; as of September last year, 65% of all face-to-face payments were conducted using contactless methods, either with cards or other devices, according to the Brazilian Association of Credit Card and Service Companies (Abecs).
Prior to this launch, the Pix proximity payment system underwent testing, with major banking and payment institutions such as Banco do Brasil, Bradesco, BTG Pactual, Caixa Econômica Federal, C6, Itaú, PicPay, and Santander involved. Twelve brands of payment terminals have partnered with Google to extend this functionality to Pix payments, including well-known providers like Mercado Pago and Stone.
"The introduction of Pix proximity payments ensures all financial institutions participating in open finance are compliant with regulations to offer this method via Google Pay, the only digital wallet currently registered with the BC as a payment initiator," said officials from the Central Bank. Notably, Apple Pay and Samsung Pay have yet to receive approval, which leaves this new service available only on Android devices for now.
To enable the Pix proximity payment method on their mobile devices, users must activate NFC technology within their settings, link their bank account to the Google Pay wallet, and follow the prompts to initiate payments. Once enabled, the process is comparable to the existing experience with debit and credit cards.
Security remains a top concern with any payment innovation. A cyber security expert from Apura Cyber Intelligence S/A, Ubiratan Cascales, reassured users about the safety measures of the new method: "Pix proximity payments are very secure as they utilize multiple tested technologies. Users have guarantees over their transactions. That said, vigilance is necessary, especially when using it in crowded places where fraudsters may attempt to exploit the system.”
João Misko, director of Payment Products at Stone, emphasized the reliability of Pix as a secure transaction model. "The Pix system has always ensured secure transactions, and with proximity payments now, all transactions continue to be protected by encryption and user authentication mechanisms, such as biometric ID or fingerprint recognition. Users can also define transaction limits to maintain greater control and safety. "
The goal behind introducing Pix proximity payments is to make the payment process much quicker than previous methods. Currently, completing transactions via Pix QR Code averages around 23 seconds, whereas payments through devices like contactless cards can take about 3 seconds. With the Pix proximity feature, the aim is to significantly reduce transaction times, diminishing payment friction and increasing the overall conversion rates for businesses.
While the main feature centers on enhancing payment speed, both QR Code and traditional Pix payment options will continue to be available for consumers who prefer them. This dual setup allows for broader adaptability among users, as they can choose the payment method best suited to their preferences or situation.
Overall, launching Pix proximity payments marks another step forward for digital payments within Brazil, which already holds the title of having the most extensive use of the Pix system worldwide. By the third quarter of 2024, over 16 billion Pix transactions were recorded, overshadowing the mere 5 billion transactions made through credit card payments. This continuous evolution aims to maintain Brazil’s lead as it adapts to its consumers' demands for faster and more efficient payment methods.
The success of this new initiative depends on user adaptation and the cooperation of both financial institutions and consumers as they adjust to this innovative cashless environment. With increased usage projected over forthcoming months, the Central Bank of Brazil anticipates significant growth driven by enhanced convenience and efficiency with the potential for even greater financial inclusion as digital payment systems evolve.