Central Bank publishes 2023 statistics on retail payments and cards in Brazil

On June 04, 2024, the Central Bank of Brazil (“BC”) published the Retail Payment and Card Statistics in Brazil for 2023, compiling information and data on the use of payment instruments in the country, the card market and access channels to banking transactions. The following contains the essential details: 

1. Payment transactions (excluding cash): 

• In 2023, a significant growth was recorded in payment transactions, totaling 108.7 billion transactions, especially following the advent of the Brazilian Instant Payment (“Pix”).
• The financial volume reached BRL 99.7 trillion, equivalent to around 9.1 times the Brazilian GDP.
• It represented an increase of 31% in the number of transactions and 9% in the financial volume exchanged as compared to 2022.

2. Payment Instruments: 

• The massive use of Pix has boosted the number of transactions (excluding cash), recording an increase of 75% in 2023.
• The card market also expanded, increasing in the credit (12%), debit (5%) and prepaid (36%) modalities.
• An increase in transactions involving direct debit, intrabank transfers and bank payment slips was recorded, as well as a reduction in the use of checks and interbank transfers.

3. Market share: 

• Pix represented 39% of transactions in 2023, second only to card transactions (41%); however, it is likely that Pix will represent an even greater market share in 2024, given that it already represented 41% of the market share in the last quarter of 2023.
• The market share of bank payment slips dropped from 7% to 5% compared to 2022, also on a downward trend due to the introduction of Pix payments carried out through a QR Code on the bank slip.

4. Access Channels: 

• Mobile phones were the main access channel for users, accounting for 82% of transactions in 2023.
• Despite the growth in remote access, face-to-face channels still accounted for around 42% of the total financial volume transacted.

5. Average ticket: 

• The Available Electronic Transfer (“TED”) recorded the highest average amount per transaction (BRL 45,625), followed by intrabank transfers.
• Pix recorded an average amount of BRL 409, while cards recorded amounts of around BRL 80.

6. Cards: 

• Prepaid card transactions increased in 2023, accounting for 23% of all card transactions.
• The average prepaid ticket was lower than that of credit and debit cards, at BRL 26, BRL 128 and BRL 61, respectively.

7. Interest-free installment payments: 

• In 2023, approximately 13% of all credit card transactions were paid in interest-free installments; however, these transactions represented around 48% of the total amount transacted with this instrument. 
• There was no significant variation in the use of credit card installments as compared to the previous year.

8. Contactless transactions: 

• The use of contactless transactions increased substantially for both credit and debit cards, corresponding to 32.3% and 38%, respectively, of the amount transacted in the last quarter of 2023.

9. Interchange fees and rates: 

• Interchange fees (“TICs”) remained stable for credit, but dropped for debit and prepaid cards, due to the limit established for these TICs, as provided for in BCB Resolution 246 of 2022.
• Merchant discount rates (discount rate or MDR) also had a slight reduction: from 2.40% to 2.33% for credit cards; from 1.17% to 1.10% for debit cards; and from 1.59% to 1.55% for prepaid cards.

10. Withdrawals: 

• Cash withdrawal transactions dropped 27% in quantity and 5% in the volume of funds withdrawn in 2023 as compared to the previous year.
• These statistics reflect the evolution of the payments landscape in Brazil and highlight the importance of Pix and cards as transaction instruments.

Demarest’s Banking and Finance team is available to provide any further clarifications on the topic that may be necessary.