Credit cards on the way out? Head of the Central Bank sees alternative in new tool.

According to Campos Neto, leader of the Central Bank, Pix can perform traditional credit card functions. Find out more!

Credit cards are one of the main payment methods in Brazil, offering convenience and simplicity to consumers' daily lives. They also offer the option of installment payments, which justifies their prominence in the financial sector.

However, its dominance may be under threat. The reason, pointed out by the leader of the Central Bank, Roberto Campos, would be the rise of Pix and its accelerated evolution as a payment instrument.

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Rise of Pix

Since its launch, Pix has emerged as one of the most widely adopted payment alternatives in Brazil, with merchants and customers quickly adopting it. In 2022, Pix accounted for 29% of all financial transactions carried out during that period, according to data from the Central Bank.

This method has gained such relevance that it has surpassed conventional transfer procedures, such as TED and DOC, which experienced a decline of 29% in 2022. According to the “Banking Technology Survey” report, this percentage coincides with the growth of Pix, evidencing the transition from traditional methods to the new platform.

Will Pix replace the credit card?

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Last Wednesday (18), Roberto Campos Neto, leader of the Central Bank, declared, during the event “Most Admired Brands in Brazil”, that Pix is adopting functions previously exclusive to credit cards, signaling the possibility of supplanting them.

“We implemented Pix in November 2020, at a time when the pandemic was intensifying and remote work was on the rise. We realized the need to introduce this new feature to the public, who were predominantly working from home,” he said.

In his final remarks, Roberto emphasized that “Pix is just one part of a much broader project, which encompasses greater competition, digitalization and tokenization. We are on a promising path.”