Expected to reach 44% of online purchases by 2025, Brazil's instant payment system and its growth will be key topics at EBANX's Payments Summit, starting on September 18 in four countries

CURITIBA, Brazil, Sept. 10, 2024 /PRNewswire/ -- 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 analyzed by EBANX, a global technology company specializing in payment services for emerging markets. The projection for 2025 estimates that Pix will account for 44% of all value transacted in online purchases in Brazil, an increase of four percentage points, while cards will have a 41% share. The even more intense acceleration of Pix over the past year has brought this scenario forward, as previous forecasts indicated it would surpass credit cards only after 2026. This data is part of a study produced for the 7th EBANX Payments Summit, an annual event that brings together industry leaders from around the world to discuss trends and innovations in digital economy and payments, such as Pix, which in less than four years has more more than 168 million users and accounts for 14% of all instant payments worldwide, according to ACI Worldwide report.

By 2025, Pix will account for 44% of all value transacted in online purchases in Brazil, an increase of four percentage points, while cards will have a 41% share.

The growth of Pix in the past year 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% and 20% per year, respectively, over the next three years, with Pix currently holding one third of the total value transacted in each. "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.

Gaming and delivery apps have also contributed significantly to Pix's acceleration. In both cases, the volume of Pix transactions is already approaching the percentage of credit cards. xVerticals like SaaS and streaming services are still dominated by credit cards, with over 60% share, but this scenario is expected to change in the near future, as the Central Bank of Brazil has been developing new features for Pix that have the potential to make it even more popular, such as Auto Pix, for recurring payments, and Pix Garantido, which will enable people to pay with Pix in installments, which is a common habit among Brazilian consumers. "Pix still has significant room for growth, even though it is already a part of the lives of 4 out of 5 Brazilian adults," says Fantini. Not surprisingly, Pix alone will respond for 24% of the total value transacted online across Latin America in 2025. 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, as stated by Capgemini.

Pix is a catalyst for digital commerce, as credit cards remain strong
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. These people were virtually excluded from digital commerce. EBANX internal data shows that 95% 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. Companies accepting Pix with EBANX in digital commerce experience a 16% increase in their revenue and a 25% growth in the number of clients. "Pix is moving the needle on their financial results," he emphasizes. EBANX's internal data considers more than 2 million daily transactions, including payments for 20% of all Pix users and nearly 70% 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% in four years. The PCMI data analyzed by EBANX indicates a 21% 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."

Payments Summit 2024
The tremendous success of instant payments, such as Pix in Brazil, will be one of the topics discussed at the upcoming 7th edition of EBANX Payments Summit, which will explore the forefront of payments innovation across rising economies. It will take place in four locations across the globe: Barcelona, Spain (Sep 18-20); Napa Valley, in California, US (Sep 30-Oct 2); Bangkok, Thailand (Oct 24-26); and São Paulo, Brazil (Nov 5). The lineup of speakers includes João Del Valle, CEO of EBANX; Maria Francis, Head of Business Development for Americas at National Payments Corporation of India (NPCI); Rene Salazar, Head of Financial Partnerships for Latin America at Stripe; Anderson Teixeira, Head of Global Cards at Santander Brasil; Wolfgang Fengler, CEO of World Data Lab; Andrew Kaing, Senior Product Manager at Canva; Constanza López Vela, Deputy General Manager of Acquiring Business at Banorte Mexico; and several others.

ABOUT EBANX
EBANX is the leading payment platform connecting global companies with customers from the fastest-growing digital markets in the world. The company was founded in 2012 in Brazil with the mission of giving people access to buy in international digital commerce. With powerful proprietary technology and infrastructure, combined with in-depth knowledge of the markets where it operates, EBANX enables global businesses to connect with hundreds of payment methods in different countries in Latin America, Africa, and Asia. EBANX goes beyond payments, increasing sales, and fostering seamless purchase experiences for businesses and clients.

For further information, please visit:
Website: https://www.ebanx.com/en/
LinkedIn: https://www.linkedin.com/company/ebanx

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EBANX (PRNewsfoto/EBANX)

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