Pix’s journey to dominance of the Brazilian payments landscape is moving at a much quicker pace than expected according to data from EBANX, a global payments technology company.
The firm has analysed Payments and Commerce Market Intelligence (PCMI) data around Pix’s use, and project’s that the Central Bank of Brazil’s homemade instant payments method will be market dominant next year.
This is a year earlier than previously anticipated. EBANX predicts that Pix will account for 44% of all value transacted in online purchases in Brazil next year, more so than debit and credit cards which are expected to have a 41% share.
Pix has already been experiencing considerable growth in Brazil, having emerged as one of the biggest success stories in the global payments sector since launching just under four years ago in October 2020.
The payment method had over 150 million users across both business and consumer accounts as of December 2023, and is expanding internationally. Portugal and Spain have begun offering Pix to tourists, whilst talks have reportedly been held with stakeholders in italy and five unnamed Asian countries.
EBANX has attributed Pix’s growth to the retail and travel sectors, the two largest digital verticals in Brazil. This trend will continue according to the group’s data with travel experiencing growth of 31% per year and travel 20%, with Pix holding one third of the total value transacted in each.
“These sectors saw Pix as a way to reach more customers,” said Sebastian Fantini, Product Director at EBANX. “Many merchants encourage payments with Pix by offering discounts to those who choose it.”
Reaching new customers seems to be Pix’s strong point. The platform has been particularly successful at reaching Brazilians who were previously unconnected with or excluded from the country’s digital finance system.
Pix was used by 95% of people making their first purchase at one of the platform’s partner’s online stories, EBAX has stated. The addition of more merchants and broadening of the sectors and markets available on Pix will only continue driving it forward.
Take betting, for example. Brazil is set to launch a nationwide betting market later this year, something which has been eagerly anticipated by the industry – and the payments providers with interests in it.
A huge onus will be placed on Pix to facilitate the payments for this industry. Betting regulations have banned crypto, cash and credit cards being used to place bets, only allowing electronic payments – which Pix is the market leader in. The opening up of new sectors will only serve to further solidify Pix’s dominance.
