Comment by cassianoleal
18 hours ago
I worked in a bank in Brazil in the early 2000s. Bank transfers were always easy and relatively quick. At worst, transfers would happen overnight during a national event called bank compensation where all banks would sync up with the Central Bank.
Pix solved a bunch of problems and made all of the above quicker and easier, but Brazil has been at the forefront of banking systems for a long time.
We had TED, but it was not instant, nor was it free. It only worked on working hours and took a maximum of 1h, still better than American banks, though. QR Codes is also a big deal.
The deployment of PIX was also really well executed, if it took too much I'm 100% sure that Visa and Master would've made it worse. Being quick was a wise decision
> We had TED, but it was not instant, nor was it free.
Not instant, but pretty close for the time. It might not have been free but most basic bank packages had a bunch of TED transfers included. For everything else, there was still DOC which would happen overnight and was either free or cheaper than TED.
I'm not dissing Pix in any way. Pix is probably the most advanced transfers and payments system in the world, and I'm 100% with you on how well it was (and still is) executed.
I was mostly responding to:
> how difficult it was to transfer money before Pix, even between local banks.
It was certainly not.
I remember being in the UK a couple years after I was on that bank, and being shocked at how primitive everything related to banking was. Transfers would take days or even weeks and would be incredibly awkward to make. Cheques were the quickest way to transfer money between people - other than cash, obviously, but that was not always desired.
A few years later I visited the US and it was even more retrograde than what I had seen in the UK all those years before.
Several backs had a good amount of TED limit. Although everything changed when Nubank launched, giving unlimited TEDs to everyone. Most banks followed at the time, so basically around 2015~ several big banks had unlimited TEDs.
The problem with TED it's just how hard it was to send money. You had to insert, if I recall right:
- Person full name - Social security number - Select the Bank Name - The type of account (savings or checking account) - Agency and account number
This basically means that TED was used as a serious payment thing, like money you receive from your company, etc.
A lot of companies still use TED.
TED is still very much alive.
In fact, the BRL amount settled via TED is still higher than Pix, although the gap seems to be closing
Man, It is perder of magnitude different. I've noticed it when I gave small money for a beggar using pix. It's really revolutionary.
And remember that credit card fees are greater in Brazil
I won't dispute you or even cassianoleal, but compared to how was US in 2005 (just barely finishing check/que digitalization), Brazil is indeed faster in this forefront (and it enabled the creation of Pix in the first place).
Speaking of the forefront the UK has had interbank realtime payments (Faster Payment) since 2008. It also used to have something like Pix, i.e. bank account referenced by user's phone number called Paym from 2014, until it was discontinued due to lack of demand in 2023. Faster Payments is still operational.
Exactly, I worked in the SPB (https://pt.wikipedia.org/wiki/Sistema_de_Pagamentos_Brasilei...) and was/is pretty well structured and well implemented.