Over the past three years, Brazil has witnessed a dramatic transformation in how its population conducts financial transactions. Pix, the instant payment system launched by the Central Bank of Brazil in 2020, has reshaped the country’s payment landscape, pushing cash usage into a steep decline. This article provides an updated view of how Brazilians are using cash and Pix, drawing on insights from two recent reports released by the Central Bank.
Here you will find out:
What is Pix and Why is it Revolutionary?
Pix Today: Brazil’s Favorite Payment Method
The Role of Financial Inclusion in Pix’s Success
How Pix Benefits Brazilian Consumers Today
Why Merchants Prefer Pix Over Traditional Payment Methods
The Implications for International E-commerce Businesses
Payment Preferences in Brazil (2024)
What is Pix and Why is it Revolutionary?
Pix is an instant payment system developed by the Central Bank of Brazil to enable quick, seamless, and cost-effective transactions. With no intermediaries and availability 24/7, it has become the go-to payment solution for millions of Brazilians. The system’s flexibility allows users to send money using phone numbers, email addresses, QR codes, or randomized Pix keys. According to the Central Bank of Brazil, Pix accounted for 76.4% of all payment transactions in 2024, surpassing traditional methods like debit and credit cards.
Unlike other payment systems, Pix ensures that users don’t need a credit card or large financial infrastructure to participate. This inclusivity has been a game-changer, especially for underbanked populations in Brazil’s rural areas.
Pix Today: Brazil’s Favorite Payment Method
Pix became the most used payment method in Brazil in 2024, surpassing cash for the first time, according to the Central Bank’s survey “O Brasileiro e sua relação com o dinheiro” (Brazilians and Their Relationship with Money). The research, reported by Mobile Time, Currently, 76.4% of Brazilians use Pix, with 46% relying on it as their primary payment method. Meanwhile, cash usage has dropped to 68.9%, with only 22% using it as their main form of payment. Debit cards rank second (69.1%) and credit cards fourth (51.6%).
InfoMoney also published na article about this research conducted by the Central Bank. The outlet highlighted the continued use of cash, especially among lower-income groups and older adults. While 75% of those earning up to two minimum wages still use cash regularly, its usage drops to 58.3% among individuals earning more than ten minimum wages. Similarly, 72.7% of people aged 60 and over rely on cash, compared to 68.6% of those aged 16 to 24.
It shows a trend of younger generations gradually moving away from cash, as evidenced by the slightly lower percentage of cash usage among individuals aged 16–24. This highlights a generational shift toward digital and cashless payment methods, driven by their familiarity and comfort with technology. However, income also plays an important role. The results indicate that cash remains significant among specific demographics, particularly those with lower income or older age.
These age and income-related trends in payment methods point to opportunities for financial inclusion and education to bridge the gap in digital payment adoption. With easier access to mobile banking, digital wallets, and instant payment systems like Pix, younger people are embracing more convenient and tech-savvy ways to manage their transactions.
Another study conducted by the Central Bank reinforces the decline in cash use in Brazil. The research, “O Brasileiro e os Hábitos de Uso de Meios de Pagamento,” released on November 29, 2024, reveals a significant drop in cash usage over the past few years, falling from 76.6% in 2019 to 40.5% in 2023. At the same time, Pix has surged in popularity, now representing 24.9% of all transactions and becoming the most preferred payment method for 64.9% of Brazilians.
Although there is a clear difference between these two studies, it is important to note the rise of Pix and the weakening of cash. The differences in how the two studies report cash usage in Brazil stem from their distinct focuses, methodologies, and metrics. “O Brasileiro e os Hábitos de Uso de Meios de Pagamento” tracks payment methods based on transactional data, showing a significant decline in cash usage. This study relied on data from 1,500 individuals, 600 businesses, and over 11,000 documented payments, focusing on the frequency and context of transactions.
In contrast, “O Brasileiro e sua relação com o dinheiro” examines the broader relationship Brazilians have with cash, including who uses it and why. It captures occasional cash use and highlights the reliance on cash among specific groups, such as lower-income individuals and older adults. The survey, conducted between May and July 2024, included 2,000 participants and aimed to help the Central Bank improve the management of Brazil’s physical currency. It was officially published on December 4th, 2024.
The methodological differences explain the variation in findings: one focuses on transactional frequency and payment trends, while the other provides a behavioral and demographic perspective. Together, these studies present a comprehensive view of cash’s declining role and its continued importance for certain demographics in Brazil’s evolving payment landscape.
The Role of Financial Inclusion in Pix’s Success
As reported by Poder 360, The research “O Brasileiro e os Hábitos de Uso de Meios de Pagamento” (The Brazilian and Payment Habits) also notes an increase in financial inclusion, with the percentage of Brazilians holding bank accounts rising from 77.3% in 2019 to 87.6% in 2023. Additionally, the proportion of individuals receiving income directly into bank accounts grew from 40.2% to 64.1% during the same period, indicating a broader shift towards digital financial services.
Pix has played a pivotal role in increasing financial inclusion across Brazil. As of 2023, 87.6% of Brazilians have an account with a financial institution, a 10% increase from 2019. This growth is largely attributed to Pix’s accessibility and simplicity. The OECD’s Latin American Economic Outlook 2024 notes that Pix has democratized access to digital payments, benefiting both individuals and businesses. Key factors include:
- Ease of use: Pix’s user-friendly interface ensures accessibility for people of all ages, even those with limited technological experience. Its simplicity has encouraged widespread adoption, making it an integral part of everyday transactions.
- Low barriers to entry: With no fees for individuals and minimal costs for merchants, Pix removes traditional financial barriers. This affordability has enabled small businesses and low-income users to participate in the digital economy, promoting financial inclusion on an unprecedented scale.
- Security: Pix employs advanced encryption and real-time verification to ensure secure transactions. These robust measures have built trust among users, reducing concerns about fraud and making Pix a reliable payment method.
By addressing these critical factors, Pix has not only reshaped the payments landscape in Brazil but also set a benchmark for other countries seeking to implement inclusive digital payment systems. According to the OECD, Pix’s success underscores the potential for technology to bridge gaps in financial inclusion and drive economic growth across the region.
How Pix Benefits Brazilian Consumers Today
According to the BC survey, 73% of Brazilians cited Pix as one of their top three payment preferences, and 41.5% ranked it as their favorite. This widespread adoption highlights how Pix effectively addresses consumer needs, offering a superior alternative to cash and cards by combining speed, security, and convenience. Its success reflects a broader trend of digital payment systems becoming indispensable in modern economies.
Pix has redefined convenience for consumers in Brazil, offering unmatched speed, accessibility, and cost-efficiency. Its key benefits include:
- Instant Transactions: Payments are processed in real-time, 24/7, whether it’s a weekend, holiday, or late at night. This immediacy eliminates delays commonly associated with traditional bank transfers or other payment methods.
- No Fees: Unlike credit cards or bank transfers, Pix is free for individuals, making it an attractive option for day-to-day transactions, especially for those looking to avoid additional costs.
- Accessibility: Pix is incredibly user-friendly. All it takes is a smartphone and a registered Pix key—such as a phone number, email address, or random code—making it accessible to people from all income levels and tech backgrounds.
Why Merchants Prefer Pix Over Traditional Payment Methods
For merchants, Pix offers unparalleled advantages. The BC survey shows that 82% of merchants prefer Pix for its low fees and instant settlement. Key benefits include:
- Guaranteed Payments: Immediate fund transfers reduce chargeback risks and improve cash flow.
- Cost-Effectiveness: Pix eliminates expensive card processing fees, making it a more affordable option.
- High Acceptance Rates: With 97% of businesses accepting Pix, it rivals cash and card payments in popularity (Poder360).
With 97% of merchants accepting Pix, consumers are more likely to adopt it for everyday transactions. Additionally, many businesses offer incentives like cashback or discounts for using Pix, further boosting its appeal.
Moreover, 27% of businesses actively incentivize Pix usage by offering discounts, cashback, or free shipping. These initiatives drive customer loyalty and reduce reliance on costlier payment systems.
The Implications for International E-commerce Businesses
For international merchants targeting Brazil, integrating Pix into payment systems is no longer just an option—it’s a necessity. As of September 2024, Pix has a base of 160.5 million users and 17.6 million companies actively using the platform (OECD report). This widespread adoption highlights its pivotal role in Brazil’s payment ecosystem, with key advantages for global e-commerce businesses:
- Enhanced User Experience: Pix offers seamless payment flows by redirecting users to their bank apps for quick and secure payments without disrupting the shopping process. This convenience improves the checkout experience and reduces cart abandonment, a critical factor in online sales.
- Expanded Market Reach: Accepting Pix allows merchants to connect with a rapidly growing digital economy. Its accessibility and popularity among consumers across all demographics open doors to previously untapped segments of the Brazilian market.
- Competitive Edge: Businesses that integrate Pix early position themselves ahead of competitors. By offering a payment method that Brazilians trust and prefer, merchants can attract more customers, increase conversions, and build loyalty.
For international businesses, adopting Pix is a strategic imperative to succeed in one of the world’s most dynamic markets. With its unmatched convenience, security, and acceptance, Pix is setting the standard for the future of payments in Brazil and beyond.
By embracing Pix, businesses position themselves at the forefront of a payment revolution, aligning with the preferences of millions of Brazilian consumers and merchants.
