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Payment Technology Complementarities and their Consequences in the Banking Sector: evidence from Brazil’s Pix

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  • Matheus C. Sampaio
  • Jose Renato Haas Ornelas

Abstract

In this paper, we employ an instrument and individual-level banking data in Brazil to examine the effects of a novel payment technology, Pix, on the utilization of other payment technologies and its impact on the banking sector. We find evidence that Pix increases the usage of the four most common payment technologies in Brazil among individuals and firms. Furthermore, our empirical evidence suggests that Pix contributes to an increase in the number of bank accounts, their usage, and access to credit, benefiting different types of banks. The findings indicate that the implementation of new payment technologies yields advantages not only for firms and individuals but also for the broader banking and payment industry.

Suggested Citation

  • Matheus C. Sampaio & Jose Renato Haas Ornelas, 2024. "Payment Technology Complementarities and their Consequences in the Banking Sector: evidence from Brazil’s Pix," Working Papers Series 600, Central Bank of Brazil, Research Department.
    • Handle: RePEc:bcb:wpaper:600
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    File URL: https://www.bcb.gov.br/content/publicacoes/WorkingPaperSeries/WP600.pdf
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    References listed on IDEAS

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