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According to Campos Neto, head of the Central Bank, Pix can perform functions traditionally associated with credit cards. Find out more!
Credit cards are one of the main payment methods in Brazil, offering convenience and simplicity in consumers’ daily lives. They also make installment payments possible, which explains their prominence in the financial sector.
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However, their dominance may be under threat. The reason, pointed out by the head of the Central Bank, Roberto Campos, would be the rise of Pix and its rapid evolution as a payment instrument.
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The 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 embracing 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 gained such relevance that it surpassed conventional transfer procedures, such as TED and DOC, which experienced a 29% decline in 2022. According to the “Banking Technology Survey” report, this percentage coincides with Pix’s growth, highlighting the transition from traditional methods to the new platform.
Will Pix replace credit cards?
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Last Wednesday (18), Roberto Campos Neto, head of the Central Bank, stated during the “Brazil’s Most Admired Brands” event that Pix is adopting functions previously exclusive to credit cards, signaling the possibility of replacing them.
“We implemented Pix in November 2020, at a time when the pandemic was intensifying and remote work was growing. We realized the need to introduce this innovation to the public, which was operating predominantly from home,” he pointed out.
In his final remarks, Roberto emphasized that “Pix is just one part of a much broader project, encompassing greater competition, digitalization, and tokenization. We are following a promising path”.
