In Brazil’s increasingly competitive e-commerce landscape, finding strategies to stand out from the competition is essential for business growth.
There are many ways to do this, and this article focuses on one that has proven especially effective: offering discounts based on the chosen payment method. After all, what shopper wouldn’t appreciate lower prices?
Of course, this strategy requires careful planning to ensure it doesn’t negatively impact your business’s financial health.
In this article, we’ll explore the concept of payment method-based discounts using Pix, its advantages, and how to successfully implement it in your online store. Get ready to see how this approach can improve your sales strategy.
What Is a Payment Method-Based Discount?
A payment method-based discount is a sales strategy that offers a reduced price on a product or service when the customer chooses a specific payment option.
The goal is to encourage the use of payment methods that are more beneficial to the merchant, whether due to faster settlement, lower fees, or reduced risk of default.
In Brazil. the most common scenario is offering a discount for Pix payments, since this method carries lower costs for merchants compared to credit cards. Less frequently, some merchants also offer discounts for bank slips (boleto) or debit card payments.
A study by consultancy firm GMattos revealed that 47% of Brazilian e-commerce stores offer Pix discounts to promote usage. According to the report, discounts typically range from 4% to 12% and can reach up to 15% during Black Friday.
It’s important to know that Law 13.455/2017 allows businesses to offer price differentiation based on payment terms or the payment method used, as long as the pricing difference is clearly visible to the customer before the purchase is finalized.
What Are the Advantages of Offering Discounts for Pix Payments?
Offering discounts based on the payment method goes far beyond simply lowering prices. It can be a powerful tool to drive e-commerce growth, delivering several key benefits:
1. Encourages Pix Usage, Which Is More Cost-Effective for Merchants
All payment methods at checkout involve processing fees, but some are significantly more expensive than others. Credit cards are the most costly, with fees reaching up to 14 times higher than those for Pix. In addition to standard processing fees, credit card payments often include extra costs such as installment anticipation charges and fraud prevention services.
2. Increases Average Order Value
When customers see the benefit of a lower price for using a specific payment method, they may be more motivated to add additional items to their cart.
3. Attracts New Shoppers to Your Website
Discounts are a powerful incentive for acquiring new customers. Shoppers who are unfamiliar with your store may be drawn in by the opportunity to save on their first purchase.
This strategy is particularly effective for winning over price-conscious customers who compare prices across multiple online stores.
4. Eliminates Chargeback Risk and Fraud Prevention Costs
Unlike credit card payments, Pix is irrevocable. Once the transaction is confirmed, the funds are transferred and cannot be reversed by the customer, eliminating the risk of chargebacks and the financial losses they cause.
Additionally, Pix payments don’t require fraud screening, which reduces operational costs.
5. Encourages Customer Loyalty
When customers feel rewarded, they’re more likely to return. Offering exclusive discounts for specific payment methods creates a sense of value that encourages repeat purchases.
It also helps build long-term relationships with your customers, who begin to associate your store with smart deals and savings.
6. Faster Access to Funds
In Brazil, installment payments by credit card are very popular. While this can help merchants close more sales, it comes with a challenge: to access funds quickly, they must anticipate receivables, an option that incurs additional costs. Pix, on the other hand, offers much greater liquidity. By incentivizing its use through discounts, you ensure fast access to your money, which is essential for maintaining financial stability.
How to Set Your Discount Rate
Although Pix has a lower cost for merchants compared to credit cards, it’s not entirely free. It’s important to evaluate your actual costs before defining your discount rate. The offer must be attractive to customers, but also sustainable for your business.
Review the discounts offered by your competitors to get a sense of what’s considered competitive in your industry. You can start small and gradually increase the discount while tracking results to find the sweet spot.
How to Implement a Payment Method-Based Discount in Your Online Store
There are two main ways to enable this functionality at checkout:
Install a plugin for your e-commerce platform (e.g., Shopify or Salesforce). However, this option can have limitations—such as not showing the percentage discount when the method is selected, only the total amount after the discount is applied.
Use a payment processor like PagBrasil, which offers this feature in its platform. With this option, the discount is applied automatically at checkout, with no need for the customer to enter a promo code. Additional benefits include:
Automatic discount calculation: The payment processor calculates the discount based on the payment method selected by the customer, reducing errors and streamlining the purchase experience.
Clear display of the discount: Both the percentage and the monetary value of the discount are shown clearly during checkout, ensuring full transparency.
Support: The payment processor provides technical assistance to help set up and manage the payment method-based discount functionality.
PagBrasil offers this discount feature for both Pix and Boleto. To enable it, the merchant must activate the respective payment method to which the discount will be applied.
Interested in using this feature to boost your sales? Talk to our team of specialists today!
