Pix is the system the Brazilian Central Bank created to bring instant payments to life and has been serving as a successful case story to other emerging markets. One year after its creation in November 2020, Pix increased 14,000%, and by January 2022, it was already used by 71% of the population in Brazil. The last reports from the Brazilian Central Bank showed that Pix generated a monthly volume of BRL 600 million (more than USD 100 million) of funds transferred.
Instant payments, or real-time payments, are electronic payments that work 24/7, 365 days a year, and allow the recipient to receive funds instantly. Pix is an excellent example of a successful instant payment. It has caused a shift in the Brazilian payments industry since it doesn't need intermediaries such as card schemes, acquirers, or issuers to work.
Digital wallets, on the other hand, are online payment tools managed by companies that store credit card information for users and let them top up the balance of a transactional account to make the checkout process more accessible.
Another significant difference is that instant payments allow the interoperability of all digital wallets, meaning that an account holder of e-wallet A can transfer funds to an account holder of e-wallet B without any hassle and in real time.