The Brazilian central bank is set to introduce a new payments platform called PIX in November this year.

The system will work as a payment method for individuals and merchants.

Additionally, PIX will enable users to withdraw cash from retail stores reducing burden on the ATMs and banks. The details of the plan are slated to be discussed in a forum in August, reported Reuters.

Central Bank of Brazil president Roberto Campos Neto was quoted by the news agency as saying: “This facility aims to increase efficiency through recycling cash in the retail system, expanding use of this network and fostering competition.”

The introduction of the new payment platform is also expected to reduce operating costs and boost retail businesses.

Central bank director Joao Manoel Pinho de Mello told Reuters that several entities have expressed interest to join the PIX network.

Around 980 institutions are expected to offer PIX from November onwards.

Notably, WhatsApp introduced digital payments service in Brazil recently. The system will allow WhatsApp users to send money to individuals without leaving the chat.

Customer payments will be free, while the merchants will pay a processing fee to receive payments through Whatsapp.

Earlier this month, Brazilian card processor Conductor partnered ACI Worldwide to expand its footprint into the Latin American market.