Brazil’s instant payment system Pix is set to surpass credit cards as the most widely used payment method in Brazilian digital commerce by next year, according to Payments and Commerce Market Intelligence (PCMI) data analysed by EBANX, the tech firm specialising in payment services for emerging markets.
EBANX estimates that Pix will account for 44 per cent of all value transacted in online purchases in Brazil, while cards will possess a 41 per cent share in 2025. The findings come after previous forecasts indicated Pix would only surpass credit cards after 2026.
This faster-than-anticipated growth has been driven primarily by retail and travel, the two largest digital verticals in the country, and also the two that will accelerate the most: 31 per cent and 20 per cent per year, respectively, over the next three years, with Pix currently holding one-third of the total value transacted in each.
In under four years, Pix has accumulated over 168 million users and accounts for 14 per cent of all instant payments worldwide, according to an ACI Worldwide report.
“These sectors saw Pix as a way to reach more customers. Many merchants encourage payments with Pix by offering discounts to those who choose it,” explains Sebastian Fantini, product director at EBANX. “Pix still has significant room for growth, even though it is already a part of the lives of four out of five Brazilian adults.”
Pix on the rise
Gaming and delivery apps have also contributed significantly to Pix’s acceleration. In both cases, the volume of Pix transactions is catching up to the percentage of credit cards. Credit cards still dominate verticals like SaaS and streaming services, with over 60 per cent share. However, this could change in the near future, as the Central Bank of Brazil developed new features for Pix that could make it even more popular. These include such as Auto Pix, for recurring payments, and Pix Garantido, which will enable people to pay with Pix in instalments, which is a common habit among Brazilian consumers.
With the success of Pix, Brazil has become a beacon for the payments market across the region: ten Latin American countries are pursuing or launching instant payment methods led by Pix, says Capgemini.
According to the Central Bank of Brazil, Pix included 71.5 million users in the financial system in just the first two years of operation. EBANX internal data shows that 95 per cent of people who made their first purchase at one of its partner’s online stores paid with Pix.
“Indeed, Pix has been serving as a gateway to digital commerce. It has positively impacted not only the financial and digital inclusion of Brazilians but also the businesses of merchants who offer this payment method to their customers,” says Fantini.
Capitalising on Pix
Companies accepting Pix with EBANX in digital commerce experience a 16 per cent increase in revenue and a 25 per cent growth in the number of clients.
EBANX’s internal data considers more than two million daily transactions, including payments for 20 per cent of all Pix users and nearly 70 per cent of Brazil’s credit cardholders.
Despite Pix’s rapid rise, credit cards still hold significant importance in building customer loyalty in Brazil, where card issuance has increased by a staggering 130 per cent in four years. The PCMI data analysed by EBANX indicates a 21 per cent annual growth in the value transacted on digital commerce by credit cards over the next three years.
“Credit cards and instant payment methods like Pix are allies, not competitors,” Fantini explains. “This is why we say at EBANX that merchants should not focus on one method or the other, but rather have a combination of methods, tailored to their vertical and the country they are focusing.”
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