The Brazilian central bank launched its instant payments platform as part of a wider innovation program that aims to overhaul the financial system in the country.
The platform, dubbed PIX, will go live on November 10 and will enable money transfers between companies 24/7, every day. The idea is to provide an easier, cheaper and more inclusive alternative to the current transaction models, such as same-day and next-day transfers on weekdays as well as cheques.
According to the president at the Brazilian central bank, Roberto Campos Neto, the introduction of PIX is "one of the most important initiatives of the year" for the institution and forms part of a series of upcoming innovations this year through to 2021.
"Our goal is to provide a public service, a platform to enable private sector actors to compete and provide high-quality services at a competitive cost for end users", the executive noted, adding that PIX is also hoped to facilitate the creation of new market players.
The new payment instrument will be able to transact via multiple methods such as QR codes or information including social security or company registration numbers, email or mobile numbers. PIX will also be available at ATMs and online banking channels.
Under the new arrangement, the Central Bank will provide the infrastructure that market actors such as banks and fintechs can use to provide services underpinned by instant payments.