The Pix instant payments system has become one of the most successful real-time payment implementations worldwide, and it will soon support buy now, pay later (BNPL) installment loans.
In just five years, Pix has emerged as the preferred payment method in Brazil, Latin America’s largest economy. Now, the system plans to introduce BNPL for its customers in September.
The new feature, dubbed Pix Parcelodo, could further drive Pix’s adoption in retail, particularly for higher-value purchases, providing an advantage to consumers who lack access to traditional credit options.
A Marriage of Two Forces
The addition of BNPL will likely further cement Pix’s dominance in Brazil. The instant payment system processed over six billion transactions per month last year. It was also a year in which Pix passed another milestone, with the platform’s transaction volume exceeding the combined total for credit and debit card transactions by more than 80%.
As the system gained traction, Pix added more features, such as NFC contactless payment functionality for customers who have linked their bank accounts to Google Wallet.
The introduction of installment loans represents a convergence of two of the most powerful forces in payments: real-time payments and BNPL. While instant payments have gained traction more quickly in areas like Brazil and India, the dominance of card payments has slowed their adoption in the U.S.
Managing the Demands
BNPL, on the other hand, has become a global phenomenon. While it was once seen primarily as a way to split larger purchases in the e-commerce environment, it has quickly evolved into a payment method used for everyday transactions—both big and small.
Despite growing demand, BNPL comes with its challenges. Transparency around users’ total debt is often lacking, and managing the installment loan process can be intensive—one reason Apple shuttered its Apple Pay Later service and moved to Affirm.
Although Brazil’s Central Bank said Pix Parcelado will be available to both consumers and merchants, it has yet to provide details on how it plans to manage the technical demands of the installment loan process.
