Brazil P2P (Peer to Peer) Payments

Brazil P2P (Peer to Peer) Payments Market Research Report: Forecast (2021-2026)

By Transaction Mode (Short Message Service (SMS), Mobile Apps, Smartcard/NFC (Near field communication)), By Location (Remote Payment, Proximity Payment), By Type of Purchase (Airtime Transfer & Top-U Read more

  • FinTech
  • Aug 2021
  • 103
  • FT33008

Definition:

Peer to Peer (P2P) payment means transferring money between 2 bank accounts through the internet. The money transfer can be done using mobile apps, smartcards, SMS.

Market Insights:

The Brazil P2P Payments Market is anticipated to grow at a CAGR of around 15.1% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The market growth primarily accredits to the surging penetration of debit & credit cards among small merchants for payments, customers' inclination toward online banking, and snowballing emergence of digital banks.

For instance, in 2020, Brazil Central Bank launched the instant payments platform 'PIX' to speed up & simplify online transactions. The payment system allows companies & consumers to transfer money 24*7 via smartphone, ATMs, etc. Moreover, by 2030, Pix is projected to account for 22% of electronic payments in the country.

The research report also states that perennial efforts by the Brazilian government to promote digital payments by launching an instant payment system shall further fuel the market growth during 2021-26.

Report Coverage Details
Study Period   Historical Data: 2016-20
  Base Year: 2020
  Forecast Period: 2021-26
CAGR (2021-26)   15.1%
Key Companies Profiled Bolet Bancario, Boleto Flash, PagBrasil PIX, PEC Flash, Samsung Pay, Google Pay, and WhatsApp Pay
Unit Denominations   USD Million/Billion

 

COVID-19 Outbreak Positively Impacted the Brazil P2P Payments Market 

The COVID-19 pandemic has triggered the public health crisis and all aspects of people's daily life. It has put the country's economy on an uncertain footing. For the payments industry, the pandemic and its consequences have boosted the existing trends in both business & consumer behaviors. Additionally, the rising adoption of e-commerce, digital payments, and instant payments have significantly accelerated since the arrival of COVID-19. Hence, the pandemic has positively influenced the growth of the Brazil P2P Payments Market.

Further, post-COVID-19, the adoption of P2P payments would continue to increase astronomically owing to the accelerating changes in the payment industry. Thus, the Brazil P2P Payments Market shows signs of tremendous growth during the forecast timeframe.

Brazil P2P (Peer to Peer) Payments Market Research Report: Forecast (2021-2026)

Market Segmentation:

  1. By Transaction Mode
    • Short Message Service (SMS)
    • Mobile Apps
    • Smartcard/NFC (Near field communication)

Smartcard/NFC (Near field communication) Dominated the Brazil P2P Payments Market with Largest Share

Based on the Transaction Mode, the market bifurcates into Short Message Service (SMS), Mobile Apps, and Smartcard/NFC (Near field communication). Of these three, the Smartcard/NFC segment earmarked the highest share in the P2P Payment Market, and the same trend is expected during the coming five years.

The increase in the chip card issuance by banks, coupled with the advent of debit card payments through mobile apps like Google Pay & Samsung Pay, has infused the demand for NFC/SmartCards. Credit & debit card transactions in Brazil are likely to grow by 18-20% during 2021, amounting to USD442.90 billion. Moreover, the adoption of new payment models like smartcards in public transport and small retailers is another crucial aspect contributing to the overall market growth, cites MarkNtel Advisors in their research report.

  1. By Location
    • Remote Payment
    • Proximity Payment

Remote Payment Acquired the Significant Share of Brazil P2P Payments Market

Based on Location, the market classifies into Remote Payment and Proximity Payment. Of both, Remote Payment attained a considerable share in the Brazil P2P Payments market. It owes to the burgeoning introduction of a new instant payment platform and increasing government initiatives to bolster contactless payments, encouraging consumers to switch to easier & safer payment options.

The launch of P2P payments, mounting consumer inclination toward instant payments, and strong presence of giant market players are a few primary reasons for the market to thrive in the coming five years. For instance, in 2021, the Brazilian government allowed Facebook to re-launch WhatsApp P2P payments in the country.

  1. By Application
    • Retail Payments
    • Travels and Hospitality Payments
    • Transportation and Logistics Payments
    • Others

Retail Payment Attained the Largest Share of P2P Payments Market

Based on the Application, the market bifurcates into Retail Payments, Travel and Hospitality Payments, and Transportation & Logistics Payments. Among these segments, Retail payment attained the highest CAGR in the Brazil P2P Payments market during 2016-2019. 

The increasing number of internet users, coupled with the burgeoning e-commerce industry, is expected to fuel the demand for P2P payment due to the paradigm shift of customers toward e-wallet & smartcards for payment. In 2018, the online retail market reached USD53 billion, and the Brazilian e-commerce market is projected to witness an annual growth of 12.4% right up until 2021.

Market Driver:

Increased Success of E-Commerce Industry to Favor the Market Growth

The rapid adoption of digital payments, innovations in mobile payments, and mounting success of the e-commerce industry are the prime factors expected to the growth of the Brazil P2P Payment Market. Convenience is the key to customer retention, so integrating a P2P payment method into the e-commerce platform provides a lucrative growth opportunity for the payment service providers. With a rising base of young & internet-savvy customers, e-commerce growth is defining the brazil payment landscape with digital payments & other P2P payment methods.

Market Challenge:

High Risk to Security & Privacy Might Hamper the P2P Payments Market Growth in Brazil

The most significant concerns involving P2P payments are the threat of fraud & security breaches. Although all P2P payment platforms claim to be secure, yet they’re not infallible. For instance, a person holding a bank account, who links it to any payment mode online, is putting his data in danger and may want to unlink it later. Hence, these aspects might hinder the growth of the Brazil P2P Market during the forecast years.

Competitive Landscape:

According to MarkNtel Advisors, the leading industry players in the Brazil P2P Payments market are Bolet Bancario, Boleto Flash, PagBrasil PIX, PEC Flash, Samsung Pay, Google Pay, and WhatsApp Pay.

Key Questions Answered in the Market Research Report:

  1. What are the overall market statistics or estimates (Market Overview, Market Size- by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the Brazil P2P Payments Market?
  2. What is the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Brazil P2P Payments Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how they perform in the Brazil P2P Payments Market based on a competitive benchmarking matrix?
  5. What are the key results derived from the market surveys conducted during the Brazil P2P Payments Market study?

Frequently Asked Questions

A. The Brazil P2P Payments Market is forecast to grow at a CAGR of 15.1% during 2021-26.

A. Bolet Bancario, Boleto Flash, PagBrasil PIX, PEC Flash, Samsung Pay, Google Pay, and WhatsApp Pay are a few leading players of the Brazil P2P Payments Market.

A. Smartcard/NFC (Near field communication) is likely to attain the highest CAGR during the forecast period and maintain its significant market share.

A. The surging penetration of debit & credit cards among small merchants for payment, customers' inclination toward online banking, and snowballing emergence of digital banks are the major factors fueling the market growth.

A. The COVID-19 pandemic has positively affected the Brazil P2P Payments Market owing to the rising adoption of contactless payments amidst the pandemic. Hence, considering the present scenario, the market is projected to continue witnessing significant growth in the years to come.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
    4. Market Segmentation
  2. Executive Summary
  3. Impact of COVID-19 on Brazilian P2P (Peer-to-Peer) Payments
  4. Expert Verbatim: What our expert says?
  5. Brazil P2P (Peer-to-Peer) Market Policies and Regulations
  6. Brazil P2P (Peer-to-Peer) Market Dynamics
    1. Drivers
    2. Challenges
    3. Impact Analysis
  7. Brazil P2P (Peer-to-Peer) Market Trends & Insights
  8. Brazil P2P (Peer-to-Peer) Market Key Strategic Imperatives for Growth and Success
  9. Brazil P2P (Peer-to-Peer) Payments Outlook (2016-2026)
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Transaction Mode
        1. Short Message Service (SMS)
        2. Mobile Apps
        3. Smartcard/NFC (Near field communication)
      2. By Location
        1. Remote Payment
        2. Proximity Payment
      3. By Type of Purchase
        1. Airtime Transfer & Top-Ups
        2. Money Transfers & Payments
        3. Merchandise & Coupons
        4. Travel & Ticketing
      4. By Application
        1. Retail Payments
        2. Travels and Hospitality Payments
        3. Transportation and Logistics Payments
        4. Others
      5. By Region
        1. North
        2. Northeast
        3. South
        4. Southeast
        5. Central west
      6. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
  10. Competitive benchmarking
    1. Competitive Matrix
      1. Brand Specialization
      2. Target Market
      3. Target End-User (Market & End Users)
      4. Research and Development
      5. Strategic Alliance
      6. Strategic Initiative
    2. Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
      1. Boleto Bancario
      2. Boleto Flash
      3. PragBrasil PIX
      4. PEC Flash
      5. Samsung Pay
      6. Google Pay
      7. WhatsApp Pay
  11. Disclaimer
Brazil P2P Payments Market Segmentation