Understand more about payments by phone. Learn about this custom among young people.
The world of mobile payments is becoming increasingly popular in Brazil and around the world. In the financial sector, this is already a craze, in fact. We can say that today, payment methods have changed from wallets to smartphones. Stacks of checkbooks and old banknotes are making more room for technology in Brazilians' pockets. Keep reading and find out more.
Evolution in payments
Between 2011 and 2021, the use of credit and debit cards and, more recently, Pix, gained public attention, according to data from the Central Bank. The boom in cards began in the early 2000s with the introduction of microchips, a pioneering initiative in Brazil. In 2011, when smartphones and 3G technology were in their infancy, 1.5 billion transactions were made by check. In 2021, this number will fall drastically to 313 million.
On the other hand, the number of debit card transactions increased from 3.5 billion to 13.5 billion in that period, sending 910 billion reais in 2021. Another survey by Opinion Box found that 10% of Brazilians are leaving their wallets at home and using the smartphone to make all payments due to technological advances. The survey says that 26% of Brazilians who have a cell phone choose the device as their favorite.
Higher among young people
The proportion is higher in the youngest age group (36%) between 16 and 29 years old, indicating a growing trend in the future. In front of the cell phone is the physical card, the preferred payment method for 60% of Brazilians. The proportion increases with the age of the users surveyed: 16 to 29 years old (49%); 30-49 years old (63%); Over 50 (69%). Only 12% of Brazilians with a cell phone prefer cash as a payment method. The preference for cash payment was higher in series C, D and E (14%) than in series A and B (5%).
Furthermore, the use of QR codes for payment continues to grow in Brazil as well.
In just one year, from March 2022 to March 2023, the percentage of Brazilians who owned a smartphone and tried the medium in a physical store increased from 67% to 80%.
The percentage of people aged 16 to 29 who paid by QR code was 86%, higher than that of 30 to 49 years old (83%) and 50 years old or older (67%). One of the major drivers of this growth is the use of Pix by large retailers. While advances in technology have optimized the payment and transfer process, digital bank promotions since 2017 have offered users more options and experiences.
Growing market
With the advent of fintechs, pioneers in fully digital financial products, the digital native generation is already evolving towards a new financial system. This model with little bureaucracy and no annual fees has become popular in recent years. According to experts, in 2022, digital banks were 4 of the 10 largest fintechs in Latin America. It is a growing market with a generation looking for simpler, more automated and digitalized processes.
In fact, a 20-year-old woman doesn't even think about withdrawing money from a cashier or in person at a bank branch, for example. And banks need to meet this growing demand. Physical money and old payment methods are increasingly losing ground among the population due to the convenience of virtual financial services. This generation shows what is worth investing in, and with that, companies that fight against the trend of more complete solutions ensure differentiation and customer loyalty.
