Record-Breaking Growth for Pix Payments

Hey Payments Fanatic!

I'm excited to share some incredible updates about Pix, thanks to Nathan Marion who heads the Brazilian operations for my good friends at Yuno . Here are the latest mind-blowing stats for the first half of 2024:

Pix has moved an astounding R$11.8 trillion in just the first six months of 2024.

Here are more key Pix statistics for this period:

? Transaction Volume: R$11.8 trillion, marking a 60% increase compared to the same period in 2023.

? Transactions Completed: Over 29 billion transactions, showcasing massive adoption by both consumers and businesses.

? Monthly All-Time High: June 2024 set a new record with 5.2 billion transactions and R$2.17 trillion in transaction volume, surpassing the previous high in December 2023.

? Largest Day Ever: On July 5th, Pix hit a new milestone with 224 million transactions in a single day.

Looking forward, the future of Pix is incredibly promising. With continuous enhancements and new features, Pix is set to offer even more convenience and security.

Some exciting developments include:

Pix Garantido: Allows for installment payments.

Pix Automático: Enables users to subscribe to services and pay recurrently.

Contactless Pix: Recently announced, this feature allows for offline payments similar to contactless card transactions.

PIX will continue to undoubtedly play a pivotal role in shaping the financial landscape, fostering innovation, and ensuring inclusive growth.

Cheers,

Marcel

Join my Telegram channel for instant access to daily updates and exclusive breaking news from the Payments industry. Connect with fellow Payments Fanatics and stay ahead with the latest trends and insights.

INSIGHTS

?????? ?????????????? in Q1 2024:

PAYMENTS NEWS

???? American FinTech Council (AFC) responds to Consumer Financial Protection Bureau (CFPB) interpretive rule on BNPL. AFC welcomed the recommendations by the CFPB but requested additional time and clarity to ensure that all Buy Now Pay Later providers, if necessary, can adjust their programs to come into compliance to ensure consistent consumer product experiences.

???? SWiM PAY, a digital payment platform, announced the launch of instant payments, providing a solution for buyers and sellers. With this new feature, transactions between buyers and sellers can now be completed instantly , eliminating the need for lengthy waiting periods and traditional payment methods.

???? Law firm Milberg skirts sanctions over fake claims in credit card fees case. A law firm that said it unknowingly submitted fake claims as part of a $5.6 billion antitrust settlement with Visa and Mastercard will escape sanctions for now, a federal magistrate judge has ruled .

????? FinTech Entrepay receives authorization from the Central Bank to operate as an Acquirer Payment Institution in Brazil. According to the publication in the Official Gazette of the Union on Friday 12/7, the IP has a share capital of R$ 351.7 million. Continue reading

????Temenos integrates Visa Direct with Payments Hub. Through the integration of Visa Direct with Temenos Payments Hub, Temenos customers will have the ability to seamlessly incorporate Visa Direct’s payment capabilities and consolidate them with other payment services on the single Temenos platform.?

???? SMEB announced it has appointed Dickson Chu as Head of Payments. Based in London, Dickson will leverage his 10 years of experience in the payments industry to develop and deliver new payment products, such as a Multi-Service App and to drive new business growth.

???? Alchemy Pay, a fiat-crypto payment gateway, has partnered with Mastercard to verify authentic users and prevent fraud in the application process . By leveraging Mastercard’s account opening solution, Alchemy Pay ensures a seamless registration experience while efficiently detecting fraud, thereby strengthening risk control measures and enhancing platform security.

???? Real-time payment growth in Australia draws FinTech interest. Global FinTechs like Volt and GoCardless are attracted to Australia's consistent growth in real-time payments, driven by customer behaviour and business demand.?

???? J D Wetherspoon partners with Payit by Natwest to provide customers a new way to pay for food and drinks via the Wetherspoon app , available immediately. Powered by Open Banking technology, the integration of Payit provides patrons with a fast, secure and reliable means to complete in-app pay orders.

???? ASX-listed Spenda Limited have announced that it has signed a binding term sheet to acquire 100% of the issued shares in Limepay Pty Ltd. The acquisition is an all-scrip transaction for a total purchase price of up to $8 million, payable in four tranches, three of which are performance based.

GOLDEN NUGGET

What is a SWIFT Payment? And how long do SWIFT Payments take?

Let’s dive in:

Despite the large number of cross-border payments being made daily, many people use SWIFT payments without fully understanding how it works and who is involved.

A SWIFT payment, also commonly known as a SWIFT transfer, is a form of international money transfer facilitated by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

It involves a message containing payment instructions sent from one bank to another.

These banks can be in different countries, and the payment typically follows a secure and standardized process.

Not all SWIFT payments are simple one-to-one transactions; sometimes, intermediary or correspondent banks may also be involved, which can affect both the time and cost associated with the transfer.

This interaction between banks largely determines the efficiency of the payment process.

Breakdown of Key Participants:

The Payer: The individual or entity initiating the payment.

Payer's Bank: The bank from which the payment originates.

The Receiver: The person or company receiving the funds.

Receiver's Bank: The bank where the funds are deposited.

Plus, Correspondent Banks or Intermediary banks play a significant role. They act as middlemen, helping to move funds between banks from different countries or dealing with different currencies.

For smooth and safe communication between banks, the SWIFT system uses specific messages:

? MT103: A message from the payer’s bank to the receiver's bank.

? MT202: A message that goes from the payer’s bank to intermediary banks, ensuring funds reach the right destination.

? MT910: A confirmation message indicating a successful credit transfer.

Statrys analysis of 500 SWIFT payments reveals that the average processing time was: 20 hours, 7 minutes, and 30 seconds.

Diving deeper into the payment processing durations segmented by currency:

?? USD payments showcased an average processing time of 16 hours, 55 minutes, and 21 seconds.

?? GBP transactions were quicker, averaging 5 hours, 54 minutes, and 41 seconds.

?? Payments in Euros demonstrated the most prolonged average duration of 22 hours, 32 minutes, and 18 seconds.

Of the studied payments, 368 involved at least one intermediary bank.

On average, SWIFT payment involves 1.32 intermediaries, peaking at 4 for some.

Interestingly, they discovered that payments involving intermediaries did not necessarily take longer to process.

I highly recommend reading the complete deep dive article by Bertrand Theaud for more info and stats.

Want your message in front of 100.000+ FinTech fanatics, founders, investors, and operators?

Shoot me a message on?LinkedIn .