Rate of Financial Inclusion in Brazil Grows As Card Access Hits 70%

Brazil has the highest rate of financial inclusion in Latin America, with the rate of adoption of debit and credit cards standing at 70%.

The card usage in the country has also reached 55%, with the amount of real-time payments also increasing significantly. The increased number of people who are now interacting with the financial system comes after the country lowered the barrier to payment infrastructure.

A report by Mastercard and Nubank noted that individuals in the country were actively pursuing financial inclusion to grow their services.

The Mastercard report leveraged data from 3.6 million customers of Nubank. It sought to demonstrate the implications of financial inclusion and whether it will promote economic growth in the long term.

Mastercard Has a High Rate of Financial Inclusion

While commenting on this report, the Chief Growth Officer at Nubank, Cristina Junqueira, opined that making financial services more accessible to people has had a notable impact.

However, there was a need to advance literacy on financial services to create better and more sustainable benefits for individuals and the entire community.

The report acknowledged that the rate of financial inclusion in Brazil had grown considerably compared to other countries in the Latin American region. The number of people in the country owning debit and credit cards has hit 70%. Moreover, there is also a commendable growth in real-time payments.

The report notes that there is a need to make sure that underserved communities can also be part of the financial inclusion process. People also needed to not only own cards, but also use them in payments. Those who use their bank cards have an easier time accessing services like loans and investments.

Bringing Financial Inclusion to Everyone

Despite the promising numbers, there is also a growing need to make sure that no one is left behind. This process involves lowering the barrier to entry. A majority of bank account holders in Brazil do not possess the knowledge of how they can maximize the benefits of being active with their bank cards.

The Division President for Brazil at Mastercard, Marcelo Tangioni, noted that “the journey to financial security and health is non-linear and full of obstacles. The only way to accelerate this journey is by understanding the barriers and then building and deploying inclusive digital solutions.”

The executive noted that the study on financial inclusion offered the evidence needed to support the use of digital payment tools. It also demonstrated that there was a need to build trust and bring people on a path towards sustainable financial health.

One of the ways that the country is promoting financial inclusion is through innovative technologies such as cryptocurrencies. In 2023, Mercado Bitcoin, the largest exchange in Brazil, obtained a payment institution license to serve as a payment institution.