According to the latest research from the financial payment company Ebanx, the instant payment system Pix is set to further expand its leading position in the e-commerce payment field and is projected to hold half of the market's transactions by 2028.

As reported by the Brazilian newspaper "O Estado de São Paulo", this forecast highlights the rapid rise of the Pix system created by the Central Bank of Brazil. Since its launch at the end of 2020, the Pix system has significantly reduced cash usage in Brazil and, since 2023, its transaction volume has surpassed the total of credit card and debit card transactions.

Last year, Pix came under investigation by the United States for alleged unfair business practices, with the U.S. questioning the dual role of the Central Bank of Brazil as the operator of Pix and the regulator of the financial system. The popularity of Pix has put pressure on the market share of credit card transactions, although U.S. companies Mastercard and Visa still dominate in this area.

Credit cards have long dominated the e-commerce market in Brazil. However, according to Ebanx data, the Pix payment method accounted for as much as 42% of online shopping in Brazil last year, slightly exceeding credit cards (41%).

Based on data from Payment and Commercial Market Intelligence (PCMI), Ebanx predicts that by the end of this year, Pix's share in online shopping payments will reach 45%, increasing to 50% by 2028, expanding its advantage over credit cards by 14 percentage points.

Eduardo de Abreu, Global Product Director at Ebanx, stated that the automatic payment feature introduced by Pix last year further solidified its position in payment methods, surpassing traditional bank cards. Additionally, Pix, initially known for peer-to-peer transfers, has rapidly grown in the business payment sector as well.

Central bank data shows that since September last year, person-to-business (P2B) payments have been the largest category of Pix transactions. In January of this year, P2B payments accounted for 46% of total transactions, while person-to-person (P2P) transfers accounted for 40%.

Abreu commented, "The public's confidence in Pix has significantly increased, and its popularity on major websites is gradually rising."

However, he cautioned that due to deeply ingrained consumer habits in Brazilian culture, especially when purchasing high-value items, people are accustomed to using credit cards for installment payments, so credit cards will still have a large user base. Even though discounts can be obtained by using Pix for cash payments, installment payments with credit cards are still welcomed by those who truly need cash flow.

"Discounts are attractive and beneficial for users from a mathematical perspective. But when people see the discount, they may say, 'Even with the discount, I can't afford to pay this month. If I really pay, even though the price is cheaper, I will go completely bankrupt.' Therefore, installment payments are increasingly welcomed by those who truly need cash flow," Abreu stated.