Comment by pimterry
17 days ago
> “Breakup” seems a bit exaggerated considering the % of payment volume which might switch to the new system.
Brazil introduced Pix in 2019, it's now the most used payment method for all transactions nationwide, ahead of both cards & cash.
India introduced UPI in 2016, it now handles >80% of digital payments there, and handles more transactions a day than Visa does worldwide.
It's totally plausible to me that a similar replacement could overtake cards completely within a decade. The lack of cross-border support means "Pay with Bizum" is a niche feature that's only useful in Spain, but if "Pay with Wero" becomes an instant & ~free payment method that works for hundreds of millions of users then it's a very different ballgame.
And also much of East and Southeast Asia as well: AliPay (CN), Kakao (KR), PayPay (JP), JKO (TW), GrabPay (SG/MY), QRIS (ID), etc. with various interop compatibility between them. If you build it they will come.
> Brazil introduced Pix in 2019, it's now the most used payment method for all transactions nationwide, ahead of both cards & cash.
Is that by volume of transactions or total amount, or both?
Cash transactions can of course only be estimated for this statement.
It took over cash in 2024 by number of transactions. And yes, cash is estimated.
I imagine bank transfers are still the largest payment method by value. Pix is taking over bank transfers, but companies have very few reasons to migrate.