Credit cards on the brink of extinction, claims Brazilian central bank chief

The chief of Brazil’s central bank Roberto Campos Neto has said he believes credit cards are on the brink of extinction due to growth in account-to-account based open payments.

Speaking at a cryptocurrency event, Campos Neto said that users will soon control all aspects of their financial life in one ‘integrator’ on their mobile, rather than having many apps from different banks.

He added that this will allow the development of cash management products for individuals and users to choose between, with payments handled by the Pix instant payment system – which is an account-to-account payment method launched back in 2020.

According to Finextra, the platform has been widely adopted by Brazilians and has already overtaken credit and debit card transactions by volume across the country.

Campos Neto said, “This system eliminates the need to have a credit card. I think that credit cards will cease to exist at some point soon.

According to Campos Neto, Pix could first expand “at least” to Latin America. He said Canada has also shown interest in the system.

Research by Splitit has found that 54% of UK credit card users plan to use buy now, pay later (BNPL) services this year.

According to the research, alongside the 54% of respondents who said they are planning to use BNPL in 2022, 20% said they were planning to do so on four or more purchases in the next 12 months. Up to 46% of respondents agreed or strongly agreed with the idea that BNPL is a smarter way to manage personal finances.

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