Brazil Pioneers Financial Inclusion Efforts In Latin America

In Latin America, Brazil is at the forefront of financial accessibility with 70% of people using credit or debit cards. The nation has seen 55% card usage and a high level of Instant money transfers. This Promising development is because obstructions to payment platforms in the country have been removed.

These are the discoveries of collaborative research by Mastercard and Nubank, which underscored how people work towards being part of the financial system.

Brazil Exhibits A Rising Trend In Instant Payment Usage

The study utilized data from 3.6 million Nubank clients and showed how being part of the financial system can help the economy grow over a long time.

The Chief Growth Officer and Co-Founder of Nubank, Cristina Junqueira, stated that having access to financial services alone has made a big difference. She added that moving forward with learning about these matters brings even better and longer-lasting benefits not just to people but to the entire community.

The study highlighted that Brazil has greatly advanced in financial inclusion in comparison to other nations in Latin America. According to The World Bank Global Findex, the country presents 70% card adoption and an ascending trend in instant payment usage.

Brazil Aims To Provide Financial Opportunities To Underserved Populations

The report emphasized how crucial it is to give financial opportunities to underserved populations. Surprisingly, 60% of Nubank’s clients started using their services within two years, irrespective of the income they made. Interestingly, prepaid cards have helped many users get loans and invest their money.

But, even with these improvements in including more people in the financial system, there are still barriers.

Although 84% of grown-ups in Brazil can get a bank account, lots of them lack the necessary financial literacy to capitalize on the advantages. To deal with this issue, the research suggested using more banking products and teaching people more financial initiatives.

Marcelo Tangioni, The Division President for Mastercard in Brazil stated that getting financially secure and healthy isn’t easy and has lots of ups and downs. The best way to speed up this process is by understanding the problems and then creating and using digital payment systems.

From this research, it is observed that using digital payment tools regularly and responsibly is important to gain trust and help people become financially healthier in the long run.

Last year, Mercado Bitcoin, the largest crypto exchange in Brazil, got a license from the country’s central bank to work as a payment institution.

This permission lets the exchange act as a payment provider and issue electronic money. With this license, the exchange can offer various digital banking services.