Payment in Brazilian Real (BRL) using QR codes via ATMs
A few years ago, non-cash payments in Brazil were frankly a gimmick. Moreover, using ATMs was associated with significant problems: travel portals even published multi-page guides on "how to choose a safe and working ATM in Brazil". But in 2020, a real "electronic revolution" happened in the country — today, payments with the help of QR codes in Brazil are more popular than all other payment methods.
Pix — the revolution of electronic payments in Brazil
The problems with cashless payments and the safety of using ATMs have forced the Brazilian government to develop a system of instant payments Pix. The country's central bank created it with the participation of major financial institutions. Of course, there were no problems with the integration into the banking system, given that Pix was actually "dropped from above" by the regulator.
Pix was launched in 2020 and rapidly gained substantial popularity. By 2023, Pix had become Brazil's most popular payment method, overtaking cash. And the fact that almost everyone uses the system is no exaggeration. Even street musicians now stand with QR codes printed on cardboard.
There are several reasons for this explosive growth in popularity, from administrative resources to the fact that Pix was introduced in the midst of the coronavirus pandemic. But one cannot fail to recognise that the Brazilian Central Bank has created a quality and well-thought-out product.
For individuals, payments through Pix are free of charge; for legal entities, the acquiring cost is reduced, and the payments themselves are processed in seconds. In addition, from the very beginning, the system has covered most of the loopholes cybercriminals use.
The final factor is the favourable environment for implementing such a system. On the one hand, Brazil has a high level of Internet penetration, primarily mobile (a picture typical of most developing countries). On the other hand, the high level of street crime has created a public demand for the ability not to carry cash (and extortionate, easily traceable cashless transfers are a bad idea).
So it's no surprise that most everyday payments today are made by Brazilians using QR codes.
Payments using QR codes at Brazilian ATMs
Brazil stands out for its love for "smart" ATMs: the vast majority of ATMs in the country are not limited to the simple functionality of cash withdrawals and bank card top-ups. They allow you to:
- make payments to a wide variety of services,
- manage bank accounts,
- make deposits,
- take out loans,
- change card PINs, and so on.
Brazilian ATMs provide almost all the same services as "full-fledged" bank branches. This is especially true for ATMs of the Bradesco network — this bank has deliberately made visiting branches almost unnecessary.
One of the most popular functions of ATMs in recent years is sending payments through the Pix system. It works very simply: you enter the recipient's details, and the ATM generates and displays a QR code, which you scan with your phone and send the payment.
Considering that Pix is integrated into all banks in Brazil (not surprisingly — the Brazilian Central Bank created the system) — it is possible to send a payment with the help of a QR code to almost any account in the country.
However, using payments via Pix for cashing in ATMs is impossible — you can only send an amount.
Payments with the help of QR codes in Brazil for foreigners
Unfortunately, the payments via Pix in Brazil are de facto unavailable for tourists. To use the system of payments by means of QR codes, it is necessary to have an account in one of the Brazilian banks. A foreigner cannot open an account just like that — they need a residence permit or a visa for at least 12 months. So, the use of Pix is relevant only for those who move to Brazil for an extended period of time.
Payments to BRL using QR codes outside Brazil
Pix is an exclusively Brazilian system that does not work directly outside the country. So, sending funds abroad using a QR code or accepting an instant transfer from abroad will not be possible. The Nexus project, which will integrate Pix with the Bank for International Settlements, is currently under development, but when it will be finalized is still unknown.
However, there is one major exception — PagBrasil allows foreign companies to accept payments through Pix in different countries worldwide. The system is designed to make life easier for travellers from Brazil. Companies using this system are pretty common in Latin American countries, with a small presence in the US but virtually none in the rest of the world.
