Raynor de Best
Content expert covering payments and (crypto)currencies
Digital payments landscape in Brazil - statistics & facts
Digital payments in Brazil are closely tied to the country's increasing use of e-commerce. Latin America's largest economy experienced a sizable growth in e-commerce use, with fashion and beauty products being the main e-commerce segments in Brazil. Credit cards are the most popular online payment method in the country, ahead of other options like digital wallets and cash vouchers - or "boleto". In physical stores, though, banknotes and coins were a popular choice in POS transactions up until 2017. The estimated share of cash in Brazil was roughly 30 percent. That said, domestic payment scheme Pix rapidly changed this since late 2020.
Digital payments refer to any form of cashless payment, or payments conducted without banknotes or coins, in an online or offline environment. Such payments can include mobile payments - digital payments performed with a mobile device - but also relatively new trends like buy now, pay later (BNPL), cryptocurrency, or instant (real-time) payments. Out of all these digital options, which developments are noteworthy to know about for Brazil?
Digital payments refer to any form of cashless payment, or payments conducted without banknotes or coins, in an online or offline environment. Such payments can include mobile payments - digital payments performed with a mobile device - but also relatively new trends like buy now, pay later (BNPL), cryptocurrency, or instant (real-time) payments. Out of all these digital options, which developments are noteworthy to know about for Brazil?
Pix: Brazil’s leading position in real-time (instant) payments
Pix is arguably Brazil's most discussed digital payment service. Launched in November 2020 by the Central Bank of Brazil to replace the old SITRAF service, Pix is an instant payment app powered by bank transfers. It initially focused on peer-to-peer (P2P) payments but the number of transactions with Pix grew as the system entered B2C and business-to-business markets. The scheme is developed to be versatile so that the system's near-instant transaction speed can be utilized in different domestic payment scenarios. Consequently, Brazil ranks among the top countries in the world in terms of processed real-time payments. Indeed, approximately 41 percent of all payments in the country is forecast to be an instant payment in Brazil come 2027.Brazil's financial inclusion is relatively high in Latin America
Pix's fast adoption also allowed an increasing number of Brazilians to gain access to financial services for the first time. The system was mandatory to use in Brazil's COVID-19 relief funds, forcing millions of people to migrate to this service. Consequently, Brazil's share of the unbanked population declined significantly. While this was not uncommon in Latin America, the change in Brazil was considerably higher than in other countries in the region. Surveys suggest that changing costs of living also impacted the use of direct bank transfers such as Pix.
