Brazil's Digital Wallet market was valued at US$5.910 billion in 2020.
The growing popularity of smartphones is the major driver of the digital wallet market. Samsung Pay, Google Pay, and Apple Pay are all available in Brazil, the only country in Latin America where all three services are available. Brazil is the only country in Latin America where Samsung Pay, Google Pay, and Apple Pay are all present. Even with high cash usage, digital wallets are likely to grow because of the population’s familiarity with smartphones. Urban mobility plays an important role in increasing digital wallet usage – and in more than one way. With the adoption of NFC and QR Code payments in public transportation, smartphone users have become more familiar with this technology. Also, car services apps are starting to find ways to include more users and enhance their payment experience. Uber, f For instance, uber has recently launched in Brazil, Uber Cash: a digital wallet that offers pre-paid payment options for all of the services offered by the company. Cabify is also looking into similar solutions and has announced in July 2019 their plans to enter the fintech market in the country, enabling drivers to receive their payments through the app and pay for their bills.
In Brazil, digital wallets are increasing financial inclusion; there is no need for users to have a bank account to benefit from the use of eWallets. With 45 million unbanked adults and over 90 million smartphone users, digital wallets will enable more consumers to participate in the digital payments phenomenon. Digital services are likely to be one of the main drivers for increasing eWallets in Brazil, as they are already very present in Brazilians' daily lives. In addition, enabling pre-paid payment methods will also encourage digital wallet adoption. It allows people with limited access to banking services to be included in the financial system and easily pay for their purchases – both online and at points of sale.
Brazil’s D digital wallet market has been segmented based on the device and application. The market has been segmented as PCs, /laptops, and smartphones by the device. By application, Brazil's digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.
Covid-19 had Boosted The Growth of Digital Wallet Market In Brazil.
Users pursued ways to minimize the count of transmission points due to the disease outbreak by curbing convenience and ease of use. Consumers also purchased products online more than ever before due to Covid-19 shutdowns and other guidelines. This naturally increased the popularity of digital wallets in the country. Brazil saw numerous fintech inventions that improved the country's contactless payment. The digital wallet market has grown phenomenally as the transaction system has become more digital. The growth is expected to continue post-Covid-19 as the digital payments and e-commerce market increases rapidly over the forecasted period.
On February 2022, Rêv Worldwide, Inc., a payment innovation management company, announced a joint venture with Banco Ita International with the official launch of the Ita Global Wallet, a software digital payment account available only to Itau's international Private Bank customers.
On December 2021, Sokin, a digital payment provider, has launched its Global Currency Account and pre-paid debit card in Brazil. The London-based FinTech, founded in 2019, helps transfer and handle Money across borders more affordable, transparent, and efficient. Sokin claims that its entry into the Brazilian market will allow it better to serve the nation's residents and burgeoning ex-pat group.
On October 2021, Dock, a South American innovator in financial technology facilities, announced the acquisition of BPP, a payment institution regulated by the Brazilian Central Bank that specialises in Banking-as-a-Service. The acquisition, accelerates Dock's full stack BaaS marketplace integrations and strengthens the product portfolio within Brazil's instant payment system (PIX),
On November 2020, EBANX has joined forces with digital wallet PicPay to provide a new payment method for international ecommerce in Brazil. International companies that use EBANX's solutions to sell in Brazil via online payment transactions can now offer PicPay as one of their methods of payment.
On September 2020, Banco Bradesco SA, Brazil's second-largest private-sector financial institution, has launched a subsidiary called BITZ to provide individuals with digital payment accounts. The bank stated that it is primarily designed for people who do not have a bank account, and that it is offering a new digital checking account that will allow clients to hold and move funds, transfer money, and buy products online.
On January 2020, Brazil's unicorn FinTech and transactions startup EBANX announced that it is testing a digital wallet named Ebanx Go with 10,000 consumers. The digital wallet provider is meant to strengthen the FinTech's position in the Brazilian payments market.
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