Happy Monday! This week, bank-issued invoices disappear due to the rise of PIX. Bolsonaro dodges surgery and is released from the hospital. Brazil’s links to the Pegasus Project.
The decline of the boleto in Brazil
For decades, Brazilians relied on boletos to charge customers and pay for services. Consisting of a bank-issued invoice, boletos are bar-code based and can be paid at bank branches, ATMs, and via internet banking. Until late in 2019, boletos made up almost two-thirds of all payments carried out in Brazil.
- Since November 2020, however, Brazilians have been witnessing the sudden death of the boleto. In that month, the Central Bank launched its instant payment system PIX, which in less than a year came to account for 61 percent of transactions in the country.
Why it matters. The massive rise of PIX can represent a threat to banks and credit card companies. In times of low interest rates — despite recent bumps, Brazil’s benchmark Selic rate remains at just 4.25 percent — these companies generate a lot of their revenue through service fees.
- Boletos, for instance, generate many fees to both merchants and customers. Plus, payments are only processed during business hours, and half of...