Brazil’s central bank chief Roberto Campos Neto believes credit cards are on the brink of extinction due to growth in account-to-account based open payments.
Speaking at an event about cryptocurrencies, and as reported by Reuters, Campos Neto projected 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.
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, he added.
Pix is the Brazilian account-to-account payment method launched in 2020. The platform has been widely adopted by Brazillians and has already overtaken credit and debit card transactions by volume across the country.
“This system eliminates the need to have a credit card. I think that credit cards will cease to exist at some point soon,” said Campos Neto, noting that banks have already started using Pix to offer credit.
According to Campos Neto, Pix could first expand “at least” to Latin America. He said Canada has also shown interest in the system.