Pix growth linked to reduced regional inequality in Brazil
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A study by the National Confederation of Financial Institutions (Fin) in Brazil suggests the Pix instant payment system, launched in 2020, helped lessen financial disparities between regions.
Researchers found that the use of Pix grew faster in states where access to credit was initially lower, indicating it reached people previously excluded from the financial system. This expansion complemented other research showing Pix positively impacted wages, bank deposits, disaster relief for families, and entrepreneurship.
The study revealed that between 2020 and 2024, the Northern region of Brazil saw a 20.8% increase in people with bank accounts, reaching 94.2% overall. Financial activity expanded by 12.2% in the North between 2022 and 2023, with strong growth also observed in the Center-West and Northeast. Vinícius Botelho of Fin noted this growth isn’t typical, as expansions of financial services don’t always reduce inequality, but Pix’s spread appears to be different.
Currently, Pix continues to grow most rapidly in states with limited credit access, leading researchers to believe this trend will continue reducing inequality for some time. Between 2024 and 2025, the states of Roraima, Maranhão, Acre, Pará, and Amazonas led the expansion of Pix usage. The study also examined capital markets, finding that debenture and commercial paper issuance as a share of economic value added increased in the Northeast and Center-West from 2020 to 2023.
