Payment methods have evolved beyond expectation in 2020. Trends and habits that seemed distant have at last been consolidated in Brazil and throughout the world. The reason is well known: the Covid-19 pandemic is one of the major drivers for online payment adoption.
According to FIS, real-time payments grew by 50% with the pandemic. In addition, according to the Sociedade Brasileira de Varejo e Consumo (SBVC), digital payments have been multiplied by five this year. Febraban also points out that 74% of financial transactions in Brazil were carried out through digital channels.
The year 2020 was also marked by the launch of Pix, Brazil’s instant payment method. With just over a month of operation, Pix has already transacted over BRL 83 billion.
With such an expressive evolution in such a short time, one question remains: what are the main payment trends in Brazil for 2021?
03 payment trends in Brazil for 2021
New payment habits should encourage innovation in the Brazilian financial market.
Mobile payments will be the new normal
Everyone is well aware that Pix should accelerate mobile payment adoption. The instant payment method holds great promise for 2021 and should strongly enter Brazilian ecommerce. Large retailers are already preparing to offer Pix in online stores, to become even more common in Brazilians daily lives.
Thus, a parallel effect is the increased use of digital wallets, as eWallets already offer this payment method.
Read also: With Pix, digital wallets have larger user adoption
Increase in banking adoption
Talking about the unbanked and underbanked in such a digital era seems illogical, but, until the last quarter of 2019, Locomotiva Institute showed the population without a bank account in Brazil had reached 45 million.
Once again, the Covid-19 pandemic has led to a major change in the financial system in Brazil. The emergency aid payment – mostly through digital accounts – has accelerated banking adoption in Brazil. According to the Central Bank of Brazil, 9.8 million have initiated a relationship with a financial institution. Further, according to information from Caixa Econômica Federal, 58 million Brazilians received at least one installment of the emergency aid, and the vast majority through digital accounts. The formalization of more people in the financial system is expected to continue growing substantially in the coming year.
It is important to note, however, that the unbanked still represent an important part of the population: about 36 million remains without a bank account.
More innovation with open banking
Another long-awaited resolution for next year is open banking: this system that consists of the sharing of data, information, and services by financial institutions at the customer’s discretion. In other words, consumers will be able to share their personal data, as well as information regarding their transactions, in order to access a larger range of financial products and services that best fit their needs.
Read also: Central Bank of Brazil announces open banking regulations
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