The impact of PIX on payment methods in Brazil

Abstract

Pix was launched in November 2020 by the BCB (Central Bank of Brazil) and has been gaining popularity among consumers and merchants. Through the study of public data made available by the BCB, this article conducts a descriptive statistical analysis evaluating the impacts of Pix, Brazil's instant payment system, on other existing payment methods in the country. This study explores how Pix has influenced financial transactions and the use of other payment methods, such as bank slips and traditional financial transaction methods like TED and DOC/TEC, which have seen a decrease in their transaction volumes and amounts due to this new technology in Brazil's payment ecosystem. The article concludes that there has been a reduction in other payment methods; however, the growth of Pix is not explained solely by the substitution of traditional payment methods but also by the increase in the number of people with banking relationships, which has been rising year by year, as well as the replacement of cash usage by Pix. All these changes stem from an increasingly inclusive and competitive environment resulting from technological evolutions, with Pix being its main exponent.