Today, the Central Bank of Brazil confirmed yet another milestone achieved by Pix, the country’s instant payment system. The previous day, Friday, December 5, witnessed a staggering 313.3 million financial transactions via Pix, with a total value of BRL 179.9 billion($36 billion) being transferred.
This new record surpasses the former high set on November 28, which coincided with Black Friday. On that day, 297.4 million transactions were made, amounting to BRL 166.2 billion, as consumers took advantage of sales and merchants received a boost from the holiday season’s spending power. The end-of-year period typically sees a surge in financial transactions, driven by holiday shopping and other seasonal factors.
The Central Bank hailed the new record as a testament to Pix’s significance as a digital public infrastructure crucial for the nation’s economy. However, the bank did not specify the reasons behind the latest record-breaking performance. Last month’s record was attributed to Black Friday shopping coupled with the deadline for paying the first installment of Brazil’s 13th-month salary, which often spurs economic activity.
Central Bank Abandons Plans to Regulate “Pix Parcelado”
The record-breaking activity occurred just one day after the Central Bank’s board decided to drop plans for implementing specific regulations for the “Pix Parcelado” feature. This option allows users to split their Pix payments into installments, effectively turning the transaction into a credit line with interest charges. The Central Bank stated it will monitor the evolution of the solutions provided by financial institutions without imposing particular requirements.
Introduced as an innovative way to pay, the “Pix Parcelado” has been available in the market but lacked formal regulation, which the Central Bank had intended to address to enhance user transparency. The decision to refrain from regulation has been met with criticism. The Brazilian Institute of Consumer Defense labeled the choice as “unacceptable,” warning that the lack of clear rules could lead to abuse and increase the risk of over-indebtedness among consumers.
As the popularity of Pix continues to soar, the concerns regarding the unregulated “Pix Parcelado” grow. Consumer advocates fear that without guidelines, individuals may be susceptible to financial products that could harm their economic well-being, especially with the rising number of transactions facilitated by the instant payment system. The Central Bank’s move leaves the market to self-regulate, a decision that is sure to be closely watched by consumer protection entities and the public alike.
Source: Olhar Digital
