Payments in digital: how PIX payment service works

The digital space has been overtaken by all sorts of payment method options that give customers new ways of interacting with e-commerce businesses and even the online casino scene. From anywhere and at any time, instant payments are sent via phones and other devices to the convenience of both customers and merchants. A shining example of this change is found in Brazil where the government has created innovative payment system to help those unconnected to banking networks still have a piece of the economic pie.

PIX has been a massive force in driving digital payment methods within Brazil. Built-up as a homegrown service, it has now surpassed cash transactions in terms of volume and is supposedly growing even faster as more people get connected with the internet. From QR-code verification to low of fees for both deposit and withdrawal transactions, PIX has become a daily staple in Brazil as a proper alternative payment method. For now, the reach of the service is rather local with its creators, the Central Bank of Brazil, being optimistic about its acceptance in different territories worldwide.

How payment method transfers funds to businesses

When looking into how businesses online receive funding from sales, there are a few actors that are involved: Customer, Merchant, Payment Facilitator, and Payment Gateway or just a Gateway in some cases. The latter act as an “intermediary” for the transaction and are usually the ones to charge service or transaction fees for each top-up. Within the online casino industry, choice of payment method affects the convenience of topping up wallets and gambling. Anything but instant payments might sow distrust in the minds of players which can then lead to a loss of revenue as customers will prefer faster websites with more innovative payment systems.

Now when the players are established in the online payment space, actual process becomes much clearer to understand. Firstly, the customer picks a service or product they want to pay for through digital or mobile payments — creating a request that is sent to the business’ website. Payment flow is built with simplicity — scanning the QR code or copying payment hash to the banking app. Most of players prefer to scan QR. From there, payment details are sent to the payment processor to verify if the customer does have the funds for this payment.

From there, the ball is in the bank’s court as they will send back a response about the payment status: approved or denied. Once the payment processor gets a proper response back, preferably an approval, then the settlement phase commences, wherein funds from the customer are transferred directly to the business and their bank account. Whether these funds come directly from an account or from some other payment method depends on the business itself and whatever kinds of mobile payments they support.

PIX as a digital revolution for the country

Acceptance for any kind of payment method outside of traditional choices is always difficult in the first few years. However, the 2020s was the perfect time for the Central Bank of Brazil to unveil PIX and make its mark as a new way for instant payments between the citizens of Brazil and give businesses an edge in digital markets within the country.

Some of the good features of this new payment method include:

• QR Codes and PIX alias;
• Instant Payments and Transaction Speeds;
• Low Transaction Costs for Businesses;
• Simplified Payment Routing.

A simpler and easier way of doing business is at hand for any online business in Brazil! One of the ways that PIX makes payments easier is through the integration of QR Code systems for both customers and merchants. Some of the benefits that this provides include allowing those without traditional bank accounts to reach your business and be able to access service simply through mobile payments. There is also the PIX Alias function, giving users the choice of either a static or dynamic code to connect themselves to the digital ecosystem of PIX. The Central Bank of Brazil focused on creating a system that allows merchants to send and receive funds quickly through the system as it does not rely on third-party payment facilitators.

However, there are some cons that come along:

• Limited to Brazil and only supports Brazilian Real (R$); (however, just for now!)
• Comparably low transaction limits;
• No feature supporting recurring transactions.

Accepting PIX will be your main concern and goal if the Brazilian market is the target. Maintaining this payment method is simple for any online casino operators and this also makes difference.

There is the argument for just using other international e-wallets to simplify the payment route and keep things easier to track when the number of transactions start to ramp up. However, we wouldn’t agree at all. Being local in your international business is a key to success. And many online casinos would agree! Several large online casino chains have started to accept PIX as a valid payment method. Even more, without this payment option you can’t really boost your Brazilian presence. Many are expected to support the payment method as the Central Bank continues development on the app and the number of countries that it can support. Future plans detail an ambitious dream of 60+ countries supporting mobile payments through PIX.

Securing the deal with the right payment provider

Minimising transaction costs should always be a focus for the online entrepreneur that wants to rise to the top. With services like PIX that are so embedded into the Brazilian local economy, it makes sense to take a glance at it and see whether supporting it would work or not. The allure of instant payments within the gambling space is not to be underestimated, especially with how it can affect how customers’ view an online casino and its reliability. After all, no casino wants to be marked as a slow service provider with little-to-no care for the speed of its deposit and withdrawal transactions. Therefore, choice of payment provider of PIX could become a serious concern, especially for startups in iGaming. Fintech today offers a lot of option and for careful consideration you need an experience and touch of market research. 

Here we come in hand. Still finding all sorts of miscellaneous fees cutting into your profits? Receiving complaints from players that transactions just aren’t going through? These problems and others are solvable with the right partners helping you create the best payment routing solutions for your online casino. Monoup offers consultations and all kinds of helpful advice no matter what online business you’re manning. Check out our webpage and contact us there for inquiries on what we can do for you!