Abstract

The case study, set in 2021, focuses on the instant payment digital platform PIX, an initiative of the government of Brazil. The case first touches upon the prevailing banking and financial system in Brazil and the current issues in the system. It then describes the objectives that led to PIX being launched including reducing cash transactions, improving financial inclusion, and offering an alternative to existing payment instruments. The case also draws a parallel upon some of the key aspects that led to India’s UPI becoming one of the best instant payment systems in the world. It also focuses on the various steps taken by the Brazilian government to implement the instant payment system. Finally, the case takes a look at some of the challenges arising in these efforts despite early adoption by the population with almost 300 million PIX keys registered by both individuals and companies within a year of its launch. The success of PIX depends on whether PIX will be able to learn from India’s UPI and create a better model that could be used by developing countries across the globe in the digital payment landscape.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the need for digital and alternative payment systems
• Examine the inherent issues in the current financial systems in developing nations
• Explore and compare payment systems and their implementation to understand public policy objectives in large democracies
• Examine the factors that lead to the success or failure of large scale digital initiatives for the general public

Keywords

Innovation; Banking System; Government Regulations; Technology in banking; Financial Inclusion; Economic Development