The head of Brazil’s central bank believes that the country’s open financial system will soon lead to the end of the use of credit cards.
Speaking at a cryptocurrency event, Roberto Campos Neto said Friday, August 12 that through open finance, which Brazil’s central bank has been implementing since 2021, users will control all aspects of their lives. financial information in one place on their mobile phone, according to a report from Reuters.
This, in turn, will lead to the development of products that will allow people to choose whether to make payments with Pix – an instant payment system launched in Brazil in 2020 – or debit or credit, according to the report, which adds that Pix is already in use. more often than credit and debit cards in the country.
“This system eliminates the need for a credit card,” Campos Neto said, according to the report. “I think credit cards will cease to exist at some point.”
Pix is the centerpiece of Brazil’s digital payments ecosystem, asserting its dominance just a year after its introduction, PYMNTS reported in April.
Read more: RecargaPay explains how Pix propelled Brazil into the global digital payments spotlight
The system has changed the way payments are made in the country, moving from a mixed economy of cash and credit cards to one centered on digital payments, said Rodrigo Teijeiro, founder and CEO of Brazilian fintech RecargaPay. at PYMNTS at the time.
“What happened recently in Brazil was just an explosion of innovation and disruption in the credit card stack, thanks to the development of Pix,” Teijeiro said.
Similarly, Luis Silva, founder and CEO of payment network provider CloudWalk, told PYMNTS in a June report that Brazil is emerging as a leader in the adoption of digital payments in Latin America and that Consumers across the country have high expectations for these payments. .
See also: CloudWalk meets growing demand for digital payments in Latin America
“Now banks are issuing contactless cards and the central bank has launched Pix, Brazil’s instant payment network, with huge success,” Silva said. “So basically contactless payments and Pix are the preferred payment methods here because they’re cheap and fast.”