2023-Public-Sector-Perspectives

Supporting clients’ use of Pix Citi was the first global financial institution to develop Pix technology to support its clients. The bank officially launched a QR Code collection solution powered by Pix in April 2022, which it has implemented for multiple corporate clients. Citi is a unique partner for clients due to its global presence, regional leadership and focus on the digital landscape. It acts as a key partner supporting clients’ digital transformation journey, regardless of whether they are at the beginning of that journey or already well advanced. “QR Code is in line with best practices and the market trend toward innovation,” explains André Bezinelli, Head of Payments and Receivables in Cash Management for Brazil at Citi Treasury and Trade Solutions. “We expect to continue expanding our operations with this innovative product.” Implementing Pix for the public sector Public sector entities such as utility companies have long been focused on improving customer convenience. Many have adopted the use of boletos with barcodes: the consumer can simply take their bill to an ATM, bank branch, post office, lottery agent or participating supermarket. The advent of Pix and QR codes takes convenience to the next level by enabling people to pay their bills using their smartphone and a secure, free payment format that they are familiar with and trust. Citi was quick to spot the opportunities created by Pix for public sector entities and in April 2022 launched a QR code collection solution powered by Pix. In addition to improved customer convenience, the use of Pix results in significant reductions in cost. Companies typically pay banks around R$1 to issue and collect each boleto and there may be additional costs at the collection point. In contrast, Pix costs usually are below R$0.10 per transaction for firms and is completely free to consumers. As Pix payments are immediate — proceeds are received seconds after the customer scans the QR code — public sector entities can get paid quicker, improving their cash and liquidity management. Historically, public sector entities have had to work with multiple different banks to facilitate various collection methods. This complicates cash and liquidity management: adopting Pix helps to overcome this problem. Pix has multiple potential use cases for public sector entities, including for the payment of water, light, gas and telephone bills as well as for tax payments. In addition to improving convenience and lowering costs, the adoption of Pix can be part of efforts to streamline billing, collection and reconciliation processes. Citi has led the way in identifying use cases and appointed a specific partner to monitor all public sector Pix-related tenders. Citi’s first public sector implementation was for Bahia State Water & Sewage Company (Embasa) to enable it to collect from customers in February 2022. This was followed in April 2022 with the implementation of Pix for payments to suppliers. “Undoubtedly, this relationship with Citibank will bear much fruit,” says Marcela Lima, Embasa’s Financial Director. “Citibank introduced this Pix technological innovation to our customers and it’s a relationship that will only grow and strengthen over time.” Márcio Gide, Treasury Manager at Embasa adds: “We are in an environment of constantly evolving technology. Partnering with Citibank gives us access to the best channels for continuous operational growth, adding value and quality to the services provided to Embasa’s users.” In July, Rio Grande do Sul’s water and sewage company Corsan adopted Pix for collections. And in September 2022, the City of Porto Alegre (capital of Rio Grande do Sul) tendered Pix collections, with Citi winning the contract. Citi Perspectives for the Public Sector 41