US, Colombia and Canada “import” Pix and prepare similar means of payment

The Federal Reserve (Fed, the central bank of the United States) begins this month the tests of its instant payments system, FedNow. The American version of Pix, it promises to revolutionize the way money is sent and received in the world’s largest economy.

Meanwhile, in Brazil, the “original” Pix — which began to be gestated during the government of former president Michel Temer, as part of an agenda to improve BC’s tools — is close to hitting the record R$1 mark. trillion in transactions carried out in a single month, and is on the way to replicating its experience in other countries, such as Colombia and Canada.

The Fed expects to launch the system between May and July 2023. In its final stage of development, the FedNow pilot project will begin the technical testing phase, with the participation of more than 120 institutions.

In parallel, the Fed is already starting to involve other institutions interested in the new solution, but which were left out of the pilot project.

The US central bank’s promise is that FedNow will be available to financial institutions of all sizes in the US. And thus, connect American companies and families, facilitating payments in an economy where the check — which in Brazil has practically disappeared from everyday life — is still a frequent presence.

“Together with our partners, we will be ready to launch FedNow between May and July 2023,” Fed Vice President Lael Brainard said at a recent event on instant payments.

She said FedNow should transform the way payments are made in the world’s largest economy, delivering “substantial gains” to families and businesses through instant money transfers.

Like Pix, the new tool will work 24 hours a day, seven days a week.

“Immediate availability of cash can be especially important for families managing their finances paycheck to paycheck or small businesses with cash flow constraints,” said Lael.

The US monetary authority has yet to reveal expectations for FedNow. According to Lael, the number of American companies and families that will use the “American Pix” will depend on the number of financial service providers that join the new payment infrastructure of the municipality.

Accession

In Brazil, Pix is ​​operated by more than 770 institutions, according to the BC. Due to the ease of sending and receiving money, and also the fact that there are no fees, the adhesion of Brazilians to the new system was an explosion.

The number of Pix keys, more than 478 million, is twice the number of inhabitants in the country, of 212.7 million, according to the most recent estimate by the Brazilian Institute of Geography and Statistics (IBGE). The total number of users totals more than 131.8 million, of which 122 million are individuals.

Pix was praised by institutions such as the Bank for International Settlements (BIS), a sort of central bank of central banks, which highlighted “the lower costs and greater financial inclusion” with the tool. And it aroused the interest of other countries.

According to BC president Roberto Campos Neto, Pix’s first international steps may take place within Latin America. Colombia has already shown interest in replicating the Brazilian experience.

“We are doing an international part of Pix. I have talked a lot with the central banker of Colombia (Leonardo Villar). He tells me they want to do the same,” he said at an event last month, also mentioning Canada’s interest.

For Campos Neto, the attraction of other countries is due to the low cost: “Pix is ​​very cheap, it cost R$ 5 million for the Central Bank”.