How does Pix installment payment work? Learn all about this payment method
Pix installments are one of the tool's new features
Announcements
Pix installments allow users to pay in installments via Pix, one of the most widely used payment methods in Brazil.
With this new feature, consumers will be able to split the transaction into up to 12 or 24 installments. In fact, the service is already being offered by institutions such as Mercado Pago, Picpay and Santander.
And if you want to know more about Pix installments, continue reading, as we will explain how everything works, the advantages and disadvantages of this feature.
What is pix?
Pix is an instant payment method.
Money is transferred from one account to another in just a few seconds, even on holidays and weekends.
However, in addition to transfers, you can make payments in physical and virtual stores through pix.
The tool can be used by individuals and legal entities.
How does pix work?
Pix is a feature that appears in the app of the bank or institution where you have an account.
If you need to make transfers and payments, you can use this function.
It's simple, fast and practical.
To get started, all you need to do is register a Pix key, which can be your CPF/CNPJ, cell phone, email or random key.
The Pix key is basically the “address” of your account. In other words, if you need to receive a transfer, simply pass your key to the other person.
What is installment pix?
Pix installment payment, as the name suggests, allows users to pay in installments via Pix.
In fact, the consumer is asking for an advance on the transaction amount, so that he can pay a person or company.
Whoever receives the Pix transfer will receive the full amount of the payment. Whoever sent the transfer will be able to pay the installments in installments over the months.
The process is similar to paying in installments on a credit card or paying installments on a loan.
Which banks offer this feature?
Currently, some banks and fintechs already offer the service.
Meet some of them:
Santander
With Santander, you can pay your Pix in up to 24 installments.
This way, you can organize your finances until the first installment is paid, which can be made in up to 59 days.
The installment will be automatically debited from your checking account on the day you choose.
Whoever receives the transfer will not have any information about the installment plan, as the amount will be transferred in full.
The minimum installment value is R$ 5 and there is an incidence of IOF (Tax on Financial Transactions) which must be paid in installments when taking out the credit.
The feature can only be used by Santander customers.
Mercado Pago
Mercado Pago is the payment platform created by Mercado Livre.
Anyone who uses the app knows that there are several resources available, such as payments via bank slip and credit card, for example.
In fact, the money saved in your Mercado Pago account yields 100% of the CDI (Interbank Deposit Certificate). In other words, the yield is more advantageous than that of savings.
In addition, Mercado Pago account customers can now make installment payments using Pix.
The function is available to those who have a pre-approved credit line with the institution that has a value equal to or greater than the purchase amount.
Purchases can be paid in up to 12 installments and the minimum amount to use the function is R$ 15.
Picpay
Picpay also offers this feature to customers.
However, in this case, the Pix installment is made through the credit card (the installments are added to the invoice).
Additionally, the functionality is only available for purchases, not for transfers between individuals.
The installments can be divided into up to 12 installments.
What interest is charged?
• Santander: from 2,09% per month;
• Mercado Pago: from 2.5% per month;
• PicPay: 3,99% per installment.
It is important to remember that the greater the number of installments, the higher the interest rate charged tends to be.
What are the advantages of installment payments?
Pix installments offer several advantages, such as:
Possibility of reducing fees charged by card operators
As we said, when making an installment payment via Pix, you will have to pay interest.
Still, the rates are slightly more advantageous than those charged by card operators.
For this reason, it is very likely that there will be direct competition.
This means that some carriers, over time, may reduce interest rates for both customers and businesses.
Pix installments guaranteed
The feature is so named because it guarantees payment.
If there is no balance in the account on the day the installment is debited, the financial institution will take over and charge the amount immediately.
This way, the seller is guaranteed to receive the amount that was paid in installments via Pix.
Disadvantages of installment payments
One of the disadvantages, as you can see, is the interest rate charged by institutions.
Although the rates are lower than those charged by operators, this cost still exists.
Furthermore, the consumer may get into debt. For this reason, it is important to plan well and not use credit for amounts greater than what you earn.
Using credit is always a warning sign, as the accumulated installments can snowball. It is recommended to use this resource only in times of emergency.
Will installment payments replace credit cards?
Pix, without a doubt, is here to stay.
But that doesn't mean the new feature will replace the credit card.
After all, cards continue to be widely used by Brazilians and some of them offer benefits such as points programs that can be exchanged for miles, discounts, etc.
In other words, at least for now, the installment payment method will be another payment alternative, but it will not replace other tools.
Conclusion
Pix installments are a tool that makes payments more practical.
However, it is always important to be careful with installments and interest, regardless of the purchase value. The ideal is to make a financial plan and avoid unnecessary purchases.
