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For the first time, according to data released by the Brazilian Central Bank (“BCB”), Brazilian Instant Payment Scheme (“PIX”) transactions surpassed cards in the 4Q21, though this isn’t a bad sign for acquirers.
PIX transactions totaled 3.89 billion in the 4Q21, an increase of 34% over the 3Q21. In cards, transactions also grew but at a slower pace. There were 3.85 billion in debit (+9% QoQ), 3.73 billion in credit (+12% QoQ), and 1.92 billion in pre-paid (+20% QoQ).
Still, according to the BCB, since Pix was launched in Nov of 2020, the most impacted category was the wire transfers, dropping almost 50% YoY in the number of transactions.
Although the consensus thinks that credit card transactions will vanish among retail customers, cards are being inserted into the day-to-day payments for individuals.
For instance, in the 4Q21, the average value of transactions per PIX was R$495. Meanwhile, it was R$126 in credit, R$67 in debit, and R$21 in prepaid.
Also, according to ABECS, Near Field Communication (“NFC”) transactions account for 26.3% of all in-person credit card transactions, a considerable advance considering that the product was “unknown” before 2020.
Payment schemes, such as MasterCard and Visa, know they need to offer convenience to their customers to increase customer stickiness.
So they offer loyalty programs (cashback), insurance, convenience (restaurant and flight booking), QR Code, NFC, etc.
The available evidence still suggests that PIX disrupts wire transfers, which is an expensive (legacy infrastructure) and inefficient service (settlement and UX) that banks offer.
Nevertheless, we’ll keep watching for the subsequent advances in the PIX Agenda and its impacts on cards transactions.