The Rise of Pix: Brazil’s Dominant Digital Payment System
Pix, launched by Brazil’s Central Bank in November 2020, has rapidly become the leading payment system in Brazil. It facilitates instant, cost-free transactions via national ID numbers, phone numbers, or QR codes. By 2024, Pix reached 63 billion transactions worth 26 trillion reais, outpacing traditional payment methods. However, this rapid growth raises concerns about the central bank’s heightened authority within the financial sector.
In November 2020, Brazil’s Central Bank (BCB) introduced Pix, a digital payment system designed to promote contactless transactions during the COVID-19 pandemic. This innovative platform quickly gained popularity due to its instant, free, and user-friendly nature. Users can transfer money using a recipient’s national ID, phone number, or QR code, contributing to Pix’s rapid adoption. By 2024, it emerged as Brazil’s leading payment method, surpassing both cash and cards, with transactions skyrocketing from 9 billion in 2021 to 63 billion in 2024, moving a total of 26 trillion reais ($4.5 trillion). This rapid implementation is unprecedented in global financial systems.
The launch of Pix has transformed Brazil’s banking landscape, offering a fast and efficient payment solution that gained significant traction amid the pandemic. While the efficacy and convenience of the system are evident, concerns surrounding the central bank’s substantial influence over the financial sector warrant a closer examination as Pix continues to evolve.
Original Source: www.economist.com
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