Stripe merchants set for revenue boost by adding Pix as a payment option, according to the global fintech.
Stripe has partnered with EBANX to power inclusive payments in Brazil, where Pix now accounts for 51% of B2B transaction value.
As of August 11, Stripe merchants can accept Pix payments from Brazilian customers in Brazilian Reais (BRL), with settlements made in the merchant’s domestic currency, according to an announcement from the fintech giant.
Pix, the instant payment system developed by the Central Bank of Brazil, has gained significant popularity since its launch in November 2020.
EBANX, the local payment infrastructure partner in the deal, published research showing Pix usage is expected to overtake credit cards as Brazil’s leading online payment method by 2025. Furthermore, its findings show it is already used by 91% of Brazilian adults and is five times faster than credit card transactions.
João Del Valle, CEO, Ebanx, said: “Working with Stripe to offer Pix is a no-brainer. There are 60 million people in Brazil who lack a credit card.”
One of the reasons Pix’s adoption rates continue to grow is the introduction of new features, which are commonly only available to those using traditional methods. In April, the Central Bank of Brazil announced plans to introduce a buy now, pay later (BNPL) feature.
With these new developments driving usage, Stripe is hoping to capture the Brazilian and wider Latin American market.
Recent research from the firm found businesses using Stripe, which offered at least one additional relevant payment method beyond cards, grew revenue by 12% and improved conversion by 7% on average.
“Our partnership with EBANX is important for increasing Stripe users’ reach in Brazil, Latin America’s largest market,” said Krishnan Rajagopalan, Global Head, Expansion, Strategy and Incubation Partnerships at Stripe.
“For global commerce today, enabling how customers pay is often just as important as what’s being sold. Customers prefer payment methods they know and trust, which directly impacts the bottom line.”
Looking beyond Brazil
While Stripe’s announcement centres on Brazil, the integration of Pix opens doors across Latin America. Pix payments are now accepted in Argentina, Chile and Uruguay, with the latter debuting Pix in 2023 via PagBrasil’s “Pix no Mundo” initiative.
By the end of 2024, PagBrasil projected over 500 Uruguayan merchants would accept Pix payments, driven in part by a government policy allowing VAT refunds for Pix payments, similar to credit and debit cards.
Pix has also expanded beyond South America, gaining traction in Portugal and, most recently, the US. In July, PagBrasil partnered with Verifone to bring Pix to US merchants, enabling Brazilian tourists to pay in BRL at point-of-sale terminals.
While Pix’s international rollout is currently geared toward accommodating Brazilian travellers, its simplicity, speed and growing merchant adoption suggest it could evolve into a globally accepted payment method.
