Brazil’s economy is South America’s largest, and it accounts for 55% of online sales in Latin America. Digital payment methods like the Pix instant payment system, which was introduced by the Central Bank of Brazil (BCB) in 2020, have seen impressive uptake in Brazil, while more traditional payment methods like Boleto Bancário are still widely used.

Brazil is a major global trade partner to China, the United States, and many other countries, which has driven the need for efficient cross-border transactions. A regulatory environment that encourages growth in the fintech sector has made Brazil a focal point for global investors and businesses that are eyeing expansion into Latin America.

Below, we’ll explain what businesses that plan on entering the Brazilian payment system should consider, including:

• Balancing cash payments with digital payment methods
  
• Adhering to local regulations
  
• Adopting local payment methods and interfaces
  

The BCB plays an important role in defining the country’s monetary policies and financial regulations, which are typically stringent. Through forward-thinking initiatives such as open banking and Pix and through regulations on cryptocurrencies, the BCB has reinvigorated Brazil’s financial sector. These advancements have drawn international attention and positioned Brazil as a front-runner in fintech improvement, fostering an environment ripe for growth.

The state of the market

With its mix of large cities and vast rural stretches, Brazil has a complex relationship with cash. According to a 2025 report, 14% of Brazilian adults don’t have bank accounts so a portion of the population still relies on cash payments. In 2024, 22% of point-of-sale (POS) payments were made with cash. However, there’s a strong movement toward digitalization, largely driven by initiatives from the BCB. As a result, major urban areas such as São Paulo and Rio de Janeiro are experiencing a shift toward electronic payments. Younger people in particular are adopting digital wallets and online banking, primarily due to their convenience and speed. Cryptocurrencies and stablecoins are gaining traction in Brazil as flexible alternatives to traditional systems. This gradual embrace of digital technology is subtly transforming the financial environment, hinting at a future with less reliance on cash.

The BCB’s initiatives have also supported the rise of more nimble fintech companies. Nubank, a neobank established in 2013, amassed more than 80 million customers by 2023, offering credit card services and digital payment solutions without the constraints of brick-and-mortar branches. This trend toward digital-first solutions is reflective of a broader shift in consumer preferences, particularly among younger people. As fintechs, bolstered by supportive regulatory measures, continue to gain momentum, they quietly reshape the way Brazilians interact with financial services. This might lead to a new era of accessibility and convenience.

The BCB plays a pivotal role in forming Brazil’s monetary policy and financial regulations, which are traditionally stringent. The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários or CVM) oversees the securities market to protect investors’ interests and promote transparency. The BCB has also invested in improvement by introducing open banking regulations and the Pix instant payment system. These initiatives modernize the financial environment and encourage fintech growth. As a result, Brazil’s dynamic approach to digital finance has gained international recognition, cementing the country’s status as a leader in financial improvement and adaptation and paving the way for a new era of customer-centric financial services.

Payment methods

Customers in Brazil rely on a range of payment methods, from cash and credit cards to mobile and contactless payments, highlighting the diverse payment space. Here are some of the most popular ways to pay.

Current usage

While cash has traditionally been a popular payment method in Brazil, its prevalence has been diminishing as digital payments, including mobile wallets and online transactions, become more popular. This matches trends in some Asian markets such as India and China.

Credit card usage is also widespread. Visa and Mastercard are the leading credit card networks, followed closely by Elo, a domestic card brand born out of a partnership between major Brazilian banks. Hipercard, a regional card network, is also popular in certain parts of Brazil for its no-annual-fee policy and its integration with a major national supermarket chain. A distinct feature of the Brazilian credit card market is the widespread use of installment payments, even for smaller purchases. Customers often have the option to split a purchase into several monthly payments without paying interest, which has led to a culture of buying in installments.

The rise of contactless payments in Brazil represents a growing preference among customers and is a testament to the country’s adaptive financial infrastructure. In 2023, contactless payments accounted for over 31% of credit card transactions in the country.

Nonetheless, with the explosive growth of Pix, customers are increasingly drawn to its efficiency and cost-effectiveness. This poses a challenge to traditional credit card usage and reshapes the competitive environment of digital transactions.

Popular B2C payment methods in Brazil

• Pix transfers
  
• Cash
  
• Debit cards
  

Popular B2B payment methods in Brazil

• Wire transfers
  
• Bank transfers
  
• Credit cards
  

Emerging trends

Payment habits are changing in Brazil, with a growing movement from cash toward digital payments. According to data from the BCB, Pix’s transaction volume increased by roughly 34% from December 2023–December 2024, signaling a major shift in customer behavior. Yet while digital and card payments gain traction, cash remains a widely accepted payment method, especially in remote, rural regions.

Contactless payments, once a novel concept in this region, have also expanded their market share, with the value of these payments increasing by more than 187% between 2021 and 2022. Younger, more urban, and technologically savvy residents in Brazil have helped drive this growth, but the trend isn’t limited to the cities. Smaller towns and more rural regions are also witnessing an uptick at a slightly slower pace. Mobile payments have also shown substantial growth, with the value of mobile payments increasing by almost 80% from 2019–2020. As Brazil’s payment space develops, cryptocurrencies and stablecoins stand out as major trends.

The BCB has been pivotal in steering the nation’s payment behaviors. Recognizing the challenges and opportunities of a cash-heavy economy, the bank has rolled out initiatives to promote electronic transactions. The introduction of Pix was a landmark step in this direction, offering a free, instant payment solution that’s available 24/7 for both businesses and customers. Moreover, regulatory policies aimed at curbing illegal activities and black market transactions have imposed limits on large cash transactions. For instance, as of 2021, businesses are required to report to the tax authorities any cash transactions that exceed 30,000 Brazilian reais (BRL).

Ease and friction of entry

Here are some factors for businesses to consider before they enter the Brazilian market.

Taxes

The Imposto sobre Operações Financeiras (IOF) is a tax on both customers and businesses. This tax is levied on credit operations, foreign currency exchange, and insurance operations, among other financial sectors. While the rates can differ based on the transaction type, credit card transactions usually incur an IOF of 3.5%. Additionally, Brazil’s value-added tax (VAT)—known as Imposto sobre Circulação de Mercadorias e Serviços (ICMS)—varies by state but is typically between 17% and 20%. Businesses are responsible for collecting and remitting this tax. It’s important for both parties to be aware of the ICMS rates, especially for businesses that operate in multiple states. Noncompliance or late remittance can draw penalties and increased scrutiny from tax authorities.

Chargebacks and disputes

Brazil has its own set of regulations for handling chargebacks and disputes that lean heavily toward consumer protection, much like those in Europe. The Consumer Protection Code (Código de Defesa do Consumidor) provides customers with a range of rights and protections. Chargebacks differ based on the transaction type. For card-present transactions, Brazilian regulations are stringent, making unauthorized transactions less likely to occur. Europay, Mastercard, and Visa (EMV) chip technology is popular; as is two-factor authentication. For card-not-present transactions, however, the risk is higher. As ecommerce grows in Brazil, there’s an increased emphasis on improving security for these transactions, but the onus is often on businesses to prove the legitimacy of a transaction.

Businesses generally face a tighter window for chargeback responses in Brazil compared to other markets. Financial institutions provide businesses with a limited time frame, often just days, to respond with adequate proof for their cases. The requirement of detailed documentation, including delivery confirmation and transaction records, can make the process challenging.

International payments

Brazil is an important trade partner for countries around the world, which drives considerations about currency conversion, fluctuating exchange rates, and more. Here’s what to know about accepting international payments in the country.

• Regulation of international payments
  Strict laws and regulations protect the local currency. They mandate that all international transactions occur through licensed institutions. These regulations are currently being modernized.

• Currency conversion
  Given the increasing globalization of Brazilian businesses and the surge in tourism, currency conversion has become more important than ever. Travelers to Brazil, especially those who use currencies that aren’t pegged to the US dollar or the euro, often change their currencies to BRL on arrival.

• Fluctuating currency values
  BRL has been subject to serious fluctuation compared to cornerstone currencies such as the US dollar and the euro. These currency shifts directly impact cross-border transactions and can affect the purchasing power of Brazilian customers who shop on international platforms.

• Role of third-party solutions
  Brazilians, particularly frequent travelers and those involved in international business, often prefer digital currency conversion platforms for their speed, transparency, and potentially better rates. One prominent institution is Nubank, a digital bank that provides currency conversion with up-front rates. Another is Remessa Online, which serves as a dedicated platform for international transfers and currency conversion with competitive rates for individuals and businesses. Then, there’s Wise (formerly TransferWise), which has carved out a niche in Brazil for its real-time exchange rates for global transfers.

• Cryptocurrency
  Cryptocurrencies and stablecoins are simplifying cross-border transactions, providing a faster, more cost-effective alternative to traditional banking. As Brazil’s trade relations expand, integrating digital currencies could boost transaction efficiency and appeal.

Security and privacy

Brazil is a major, growing market that emphasizes consumer protection and follows the BCB’s strong regulations. Here are some of the security and privacy considerations to take into account.

• Data protection laws
  Brazil’s adoption of the General Data Protection Law (known as Lei Geral de Proteção de Dados or LGPD) showcases its dedication to privacy and data protection. Mirroring principles from the General Data Protection Regulation (GDPR), the LGPD requires companies to have explicit user consent before they collect or process a user’s personal data. This law gives Brazilians the right to access, rectify, or delete their data.

• Fraud prevention measures
  Given the rise of digital transactions, there is a strong need for robust fraud prevention tactics. Businesses must implement advanced security protocols and technologies to safeguard against fraudulent activities. This can increase customer trust and ensure compliance with local laws.

• The role of the BCB
  The BCB has been proactive in modernizing the nation’s payments infrastructure. It has also established guidelines and safeguards to protect the security and reliability of contactless payments. Notably, in 2021, the BCB increased the limit for contactless transactions without the need for a personal identification number (PIN), a move that mirrors global trends.

• Anti-Money Laundering (AML) laws
  Brazil’s Council for Financial Activities Control oversees efforts against money laundering and financing terrorist activities. Financial institutions are required to report any suspicious activity to defend Brazil’s financial infrastructure against potentially harmful actors.

Key success factors

Here are some of the main factors that can help you succeed as you begin to accept payments in Brazil.

• Prioritize data security
  Given Brazil’s challenges with cyberthreats, businesses must prioritize strong security measures. Integrating features such as tokenization and multifactor authentication can assure customers about the safety of their financial data.

• Offer multilingual payment interfaces
  While Portuguese is the country’s dominant language, Brazil is home to many different ethnic and cultural groups. Providing payment interfaces in multiple languages, especially in areas with high concentrations of specific ethnic groups, can simplify the payment process for many customers.

• Understand and adhere to local regulations
  Brazil’s financial rules can be sophisticated. The BCB frequently updates its regulations to safeguard economic interests. That means businesses must track regulations and update their compliance procedures, especially those that relate to digital payments.

• Security concerns with cash payments
  Paying with cash raises concerns about the traceability and security of these transactions.

Key takeaways

Brazil’s payment space is influenced by its distinct socioeconomic conditions, technological advancements, and cultural nuances. With an understanding of the local environment, businesses can make major decisions to enhance the customer’s payment journey. Here’s another look at the avenues businesses should consider when they enter Brazil’s payment space.

Enable both cash and digital payments

• Be aware of disparities in financial inclusion
  Despite advancements, a broad segment of Brazil’s population remains underbanked. This limited access to financial services creates obstacles for digital payments, restricting commerce primarily to cash in certain regions and for some groups.

• Accept contactless payments
  Brazilians have readily adopted mobile payments for a variety of transactions, from grocery shopping and utility bills to public transportation costs. A 2023 report found that at least 20% of Brazilians used digital wallets daily and another 21% used them several times a week. However, for larger-value transactions, many customers in Brazil still rely on traditional banking methods because of ingrained habits and perceptions about security.

• Integrate mobile payments
  PicPay and Mercado Pago have positioned themselves as dominant players in the Brazilian mobile payment market. PicPay, for example, has expanded beyond just payments: it offers cashback incentives, online shopping platforms, and investment opportunities. Its diverse features make it a preferred choice for many Brazilians. Meanwhile, Mercado Pago, an offshoot of the Mercado Libre ecommerce platform, has used its parent company’s vast user base to establish itself as a leading payment solution in Brazil.

Closely monitor compliance with regulations

• Follow cybersecurity protocols
  Brazil has been proactive in advancing its cybersecurity measures. Regulations mandate businesses to adopt certain minimum cybersecurity protocols, emphasizing the need for regular audits, threat monitoring, and prompt response mechanisms.

• Know the role of third-party payment providers
  Entities like Mercado Pago and PagSeguro deploy advanced security algorithms, fraud detection mechanisms, and data encryption protocols to protect businesses and customers.

• Prioritize consumer protection and financial education
  Brazil focuses on consumer protection in its financial regulations. Regulatory bodies continually monitor financial institutions to provide transparency and fairness in their dealings with customers. Additionally, Brazil emphasizes financial education, with the goal of equipping Brazilians with the knowledge they need to use the financial system safely and effectively.

Localize payment methods and interfaces

• Enable payment with local credit cards
  Credit card usage is widespread in Brazil. Elo, Hipercard, and Cabal are some of the popular local brands that coexist with global giants like Visa and Mastercard. Incorporating a range of card payment options can increase transaction completions.

• Consider integrating the Pix system
  By integrating Pix with their payment gateways, businesses can facilitate real-time transactions 24/7 and appeal to customers who value speed and convenience.

• Decide whether to offer installment options
  A notable characteristic of the Brazilian market is the preference for installment payments, even for relatively low-value purchases. Businesses can improve the payment experience by providing flexible installment plans, aligning with local buying behaviors.

• Use the popularity of Boleto Bancário
  One of the widely accepted payment methods in Brazil is the Boleto Bancário, a payment slip that allows customers to pay in cash or through online banking. By offering it as a payment option, businesses can cater to a broad swath of customers, including those without bank accounts.