Cards fail in Brazil. PIX converts. Learn why high-risk merchants see approval rates jump from 50% to 80%, how PIX fixes churn, and what you’re missing without it.
A merchant in the adult vertical in Brazil noticed something odd in their checkout data. Brazilian users converted at half the rate of their European traffic. Support tickets kept mentioning “payment problems.” The merchant assumed their gateway was broken.
Their gateway worked fine. PIX just wasn’t there.
They added it in early 2025. Within two weeks, their Brazil approval rate jumped from 52% to 81%. Same products, same pricing. Different payment reality.
This pattern plays out across high-risk verticals every month. Adult platforms, CBD and seeds, gaming operators, supplement sellers – merchants discover they’ve been bleeding Brazil revenue because they didn’t understand how fundamentally PIX changed the market.Â
How PIX works (and why technical details matter for high-risk)
PIX launched in November 2020 as Brazil’s Central Bank answer to expensive, slow payment infrastructure. The system enables instant bank-to-bank transfers using identifiers like phone numbers, email addresses, or QR codes instead of full account details.
Here’s the mechanical difference that matters: when a Brazilian user pays with PIX, they authenticate directly through their bank app using biometrics or passwords. The payment settles in seconds. No card network sits in the middle. No interchange fees. No issuer decides whether to approve the transaction based on merchant category codes.
For high-risk merchants already fighting card decline rates, this architectural difference changes economics. Cards go through risk screening at multiple points – issuer, network, acquirer. Each checkpoint can flag or block the transaction. PIX removes most of that friction because authentication happens at the bank level before funds move.
The Central Bank designed PIX with mandatory two-factor authentication. Transactions run through Brazil’s secure financial network (RSFN), separate from regular internet traffic. Every participating institution needs security certificates to process payments.Â
The numbers that explain why cards-only checkout fails in Brazil
PIX processed 36.9 billion transactions in the first half of 2025. That’s 50.9% of all financial transactions in Brazil. Cards handled 18.6 billion transactions – 25.7% of the total. Boletos, which dominated Brazil payments for years, dropped to 4.8%.
In e-commerce specifically, PIX captures 40-50% of transaction value. Cards take 30-41%. When 76% of the population has adopted a payment method, checkout without it creates immediate friction.
In Latin America, the adult industry loses 45% of sales just because they lack local payment methods.
PIX Automático changes subscription economics
Before PIX Automático launched in June 2025, subscription merchants in Brazil ran into a recurring problem: card-based renewals failed at high rates. Cards expired. Issuers blocked recurring charges. Users forgot to update payment details.
PIX Automático removes most of this friction. Users authorize recurring payments once through their bank. The authorization persists at the bank level. Payments process automatically on scheduled dates without manual intervention.
For high-risk subscription businesses – adult platforms, gaming, membership sites – this changes the revenue model. Instead of fighting 15-25% monthly churn from failed payments, merchants see renewal rates closer to cards in low-risk categories.
The Central Bank designed PIX Automático specifically to expand financial inclusion. 60 million Brazilians don’t have credit cards. PIX brought 70 million people into the financial system since 2020. PIX Automático extends that access to subscription services they couldn’t previously use due to lack of cards.
From a merchant perspective, this creates opportunity. Users who couldn’t subscribe before (no card) can now set up PIX Automático and maintain ongoing access. The addressable market expands beyond card holders to anyone with a bank account.
What to do if you’re running high-risk in Brazil
Pull your current Brazil checkout data. Look at approval rates by payment method. Calculate the gap between your Brazil performance and other markets.
If you’re cards-only and seeing Brazil approval rates below 60%, you’re leaving significant revenue on the table. If you’re running subscriptions and seeing high churn on renewals, payment method likely drives more of that than you think.
For merchants not yet offering PIX: Find a provider built for your vertical. Ask specifically how they handle compliance escalations. Request examples of how they’ve maintained operations for similar merchants when scrutiny increased. Check whether they route across multiple PSPs or rely on a single connection.
For merchants already offering PIX: Review your current provider’s stability. If you’re seeing unexplained approval rate drops, settlement delays, or vague communications about “technical issues,” start evaluating alternatives before access gets restricted.
For subscription merchants: Activate PIX Automático if you haven’t already. The renewal rate improvement typically pays for integration costs within the first billing cycle.
The Brazil market is too large to ignore, and PIX is too dominant to skip. Getting it working properly requires finding a provider who won’t pull back when your business scales or when compliance attention arrives.
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Ready to quantify what PIX could recover for your Brazil operations?
We built a Brazil Revenue Audit specifically for high-risk merchants. We’ll review your current checkout data, map where conversions drop, benchmark your performance against what’s possible with PIX, and outline exact implementation steps.
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We’ll cover your current Brazil approval rates, expected lift from PIX, technical requirements, and risk controls needed for high-risk operations. No cost, no pitch deck – just your data and clear next steps.
Vendo specializes in high-risk payment processing for CBD, seeds, and other high-risk industries. Our solutions are tailored to meet the unique needs of your business, ensuring seamless transactions and reducing the risk of payment disruptions. Contact our expert team to learn how we can help your business to maximize growth during the festive holidays and beyond.