Business

PIX may reduce by half the use of banknotes in Brazil in 10 years, says study

According to the consultancy Boanerges & Cia, 29% of payments made by Brazilian consumers currently use banknotes

The new standard will become mandatory in September 2020. Photo: Shutterstock
  • In a conservative scenario, reckons Boanerges & Cia, by 2030 banknotes will move an amount of BRL 831 billion;
  • Instant payments have the potential to reach 24% of the total amount spent each year.

PIX, the Brazilian instant payments system backed by the country’s Central Bank, will accelerate the decline in the usage of banknotes, according to a study conducted by Boanerges & Cia, and reported by Reuters.

The consultancy, which specializes in finance retail, says around 29% of payments made by Brazilian consumers in 2020 will use banknotes, a proportion that should decrease to around 14% to 15% in 2030.

In a conservative scenario, reckons Boanerges & Cia, by 2030 banknotes will move an amount of BRL 831 billion, or about 15% of the BRL 5.6 trillion estimated to be moved in private consumption that year. But instant payments have the potential to reach a quarter of the total amount spent each year.