Pix, Brazil’s instant payment juggernaut, shows no signs of slowing down. Despite reigning supreme in the country since its 2020 debut, with 150 million regular users, it still has untapped potential. Fueled by the global shift towards instant payments and buoyed by robust online commerce trends, Pix is primed for even more significant expansion within Brazil’s financial ecosystem.

The system moves more than $400 billion monthly. According to the 2024 edition of Beyond Borders, an annual report by Ebanx on the digital market and payments in emerging economies, Pix is expected to represent 40% of online payments made in Brazil by 2026. This forecast reflects Brazilians’ growing adoption of Pix, massively drawn to its convenience and affordability during the pandemic.

Pix has become an integral part of daily life in Brazil. It has become ubiquitous for in-store purchases, online shopping, or digital transfers. In 2023, it averaged three billion transactions per month, cementing its status as the primary payment method in the country and surpassing credit cards for the first time.

Pix holds a third of the online market already

It has also taken a fair share of the online shopping market, with instant transfer payments accounting for nearly 30% of Brazil’s online sales, according to estimates from the Payments and Commerce Market Intelligence. That was equivalent to USD 81 billion last year, a significant growth from the previous year.

As e-commerce flourishes in Latin America’s largest economy and Pix becomes more entrenched in the financial payments landscape, its influence will expand significantly. Ebanx forecasts that transactions conducted via Pix in online marketplaces will soar to USD 200 billion within three years, representing 40% of the total market.

“By then, the real-time system will become the most used payment method in Brazilian digital commerce, tied with credit cards,” the report read. “This is so substantial that Pix by itself is already responsible for 15% of Latin America’s digital commerce, which will grow to 20% in three years”.

Brazil is one of the largest digital markets

The trajectory of Pix reflects a broader trend toward digitalization in the payments landscape, reshaping online and in-store consumer behaviors.

“Pix revolutionized the payments experience in Brazil,” said Ebanx’s president of global payments, Paula Bellizia, pointing out that 80% of shoppers who purchased something in the past three years from Ebanx’s merchants used the tool for their first purchase. Last year alone, that figure was 95%.

By 2026, the digital market in Latin America will nearly double, soaring to $944 billion with a robust annual growth rate of 23%, as reported by PCMI data for Ebanx’s report. Brazil, a regional digital commerce powerhouse, commanded a market worth $275 billion in 2023, positioning itself as a formidable player. The country ranks fourth globally in terms of the number of digital buyers, Ebanx said, underscoring its significance in the digital landscape.

Emerging markets lead the way in instant payments

Merchants bear a nominal fee for Pix payments, considerably lower than those linked to credit or debit cards. However, Pix transactions are fee-free for consumers, which is a significant incentive for widespread adoption. Andreas Farge, Director at Payments and Commerce Market Intelligence, emphasizes that the zero-cost factor for consumers has historically played a pivotal role in driving the adoption and proliferation of real-time payment systems globally.

According to the Ebanx reports, nowhere are instant payments growing as fast as in emerging markets worldwide. These regions are witnessing a surge in the adoption of cheaper, faster, and more inclusive alternative payment methods, which are increasingly preferred over traditional options like credit cards or bank transfers.

“There is a strong demographic reason for this: emerging economies have a young and growing population, in contrast to more developed regions. In addition to the demographic and economic momentum, these markets benefit greatly from digitalization,” says Bellizia, president of Global Payments at EBANX.