Ecuador’s Central Bank is developing an instant payment system similar to Brazil’s Pix

The Central Bank of Ecuador says it is “progressing rapidly” in developing an instant payment system similar to Brazil’s PIX. The system would transfer funds instantly between individuals, businesses and banks at little or no cost.

Using a cellphone to pay with PIX in Rio de Janeiro. (Credit: Pilar Olivares/Reuters)

In a statement, the Central Bank said the system will not duplicate the Pix model but will have similar functions. “We are modernizing the central payment system with the objective of offering instant, interoperable electronic transfers 24 hours a day,” it said. “We are not copying Pix because our dollarized economy requires special controls but we want to achieve the same efficiency in electronic transfers. Ultimately, this system will benefit all parties, individuals, businesses, banks and the government.”

Brazil’s Pix is the instant payment system managed by the country’s Central Bank. Since 2020, it has allowed money to be transferred between people and businesses in seconds, using a phone number, email or QR code. It is not a digital currency, since it is based on bank account funds. The difference is that funds are moved immediately between accounts.

Jeaneth Torres, International University business professor, welcomed the Central Bank announcement. “The adoption of Pix was transformational in Brazil, and I think it can be in Ecuador too,” he says. “The platform brings together banks, cooperatives and fintechs in an infrastructure managed by the Central Bank in a system that is fast, secure and cheap.”

She adds that Pix is widely popular among Brazilians, bringing millions of previously “unbanked” people into the financial system. “It is currently used by almost 200 million people and handles almost half of all business transactions in the country.”

André Azevedo, CEO of Acertpix, a Brazilian company specializing in artificial intelligence and computer fraud prevention, says that the PIX infrastructure was a “revolutionary” change compared to traditional transactions. “Pix is not an app,” he says, “it is an infrastructure that allows payments to be made instantly 24 hours a day, seven days a week, free of charge for individuals with a small charge for businesses.”

Quito restaurant owner Márcia Oliveira, who lived several years in Brazil, also welcomed the news of the possibility of a new instant payment system in Ecuador. “Now, the problem is that if I make a sale on Friday, depending on the card used by the customer, I won’t receive the money until Tuesday,” she said. “With Pix in Brazil, when I made a sale, I received the money on the spot.”

She added that a new payment system also benefits customers. “A few days ago, I wanted to make purchase at an electronics store, and they told me they don’t accept credit cards, they only take cash. I had to find an ATM three blocks away and go back to make my purchase.”