Overview

Pix is a state-owned instant payments system in Brazil that allows people, companies, and government entities to make money transfers 24 hours a day, seven days a week, in a matter of seconds. Its immense popularity has dethroned cash as king and is putting card networks and Brazil’s three-decades-old cash-based payment voucher—the boleto bancário—on notice.

*Read the full report here.

Key Question: What’s driving Pix’s immense popularity in Brazil, and how will it reshape the country’s payments industry?

Key Stat: Roughly 145 million consumers in Brazil made more than 36 billion Pix transactions in 2023, according to official figures from the country’s central bank. That’s nearly two-thirds of the country’s entire population—or 86.0% of adults ages 16 and older—and represents over a third of all banking transactions.

Executive Summary

Pix’s impact has been revolutionary in Brazil. Owned and operated by the Banco Central do Brasil (BCB), Pix helped modernize the local payments industry by reducing consumers’ reliance on cash, lowering financial costs, and boosting financial inclusion. The ability to send and receive instant money transfers 24/7 fueled widespread consumer adoption and merchant acceptance. Its success serves as a global case study for emerging economies looking to bring their own payment industry into the 21st century.
Nearly two-thirds of Brazil’s population—or roughly 145 million consumers—use Pix. The payments system appeals to people of all ages and from all walks of life. Pix’s versatility, ease of use, and enhanced security measures have encouraged consumers to rely much less on traditional payment methods to pay for everyday purchases. It’s effectively dethroned cash as king and is now the de facto payment method of choice.
Businesses are sold on the benefits of accepting Pix. Its popularity, instant funding times, and significantly cheaper processing fees prompted many to offer Pix as a payment method at checkout. These time and cost savings have allowed merchants to extend free shipping or attractive discounts to shoppers who pay with Pix, turning it into an integral part of payment and sales strategies.
The implications of Pix are wide-ranging. As the system becomes further entrenched in Brazilian society, the country will witness a faster shift to a cashless future than more cash-dependent countries like Mexico and Colombia. Pix’s cost advantages and robust suite of functionalities will continue to boost its appeal at home and abroad. This will force traditional card networks to innovate and find new ways to stave off competition from the instant payment system.