PIX Guaranteed: Is the service a threat to credit cards?

Much has been said about PIX Garantido. The service has not yet received an official launch forecast from the central bank, but the possibility of allowing installment payments (with bank guarantees) represents a threat to credit cards.

For retailers, PIX Garantido will be another form of payment. At the end of the day, this drives sales. For customers, purchases can be made with immediate transfer even if there is no balance in the account.

Is PIX Guaranteed a threat to credit cards?

With this service, customers will be able to guarantee purchases using the PIX payment method, but will still be able to pay in installments. Purchases can be made in up to 24 installments with interest.

In other words, it is a safe payment method for both parties, especially what people are concerned about. PIX Garantido is expected to be launched by the central bank in 2022.

The service is expected to become a major competitor to credit cards, which could be beneficial for customers if there is a chance for banks to reduce interest rates.

In practice, the service will do the same thing as a credit card, due to the possibility of paying in installments, people will have more time to pay off their debts.

Today PIX only allows cash purchases. The convenience offered by this tool has led many Brazilians to adopt this payment method. On the other hand, the new service still has more information from the central bank, for example, the available limit was not disclosed.

The service should be launched in the coming months. Therefore, keep an eye on the news, as news about new security and installment options should be released soon.