Brazil central bank chief predicts death of credit cards

Good thing Central Bankers dont run retail banks then! 

One to watch - tech adoption rates accelerate every year.

I wonder who& how covers the fraud cost in this set up? Is it on consumers or is it somehow shared between the participants of PIX (contributing to some sort of 'insurance' buffer or fund)? (as highly unlikely Central Bank regulates the liability shift or deals with arbitration or anything like that)

Interesting to see how instant payments cover credit needs. A detail of this use case will be handy (for non-Brazilians) to fully comprehend why the uptake of Pix will result in proportional decline of Credit needs being met through credit cards.

This is not going to happen. There are market factors that will support the need for credit cards, namely consumers need a loan. In the U.S.about 2/3 of all credit cards have loan balances. The other 1/3 loose money.

At the peak of re/demonetization, a govt honcho predicted that credit card and POS will be dead in India in 3 years.

5 years later, the count of credit cards and POS terminals has shot up by three times - despite India's A2A RTP UPI becoming a blockbuster hit during the same period.

This turned out to be one of the most harebrained predictions of all times!

To democratize credit, UPI operator NPCI recently announced that UPI will soon support credit card as another funding source.

I wonder if this article is missing some of the context because I can't understand why a senior banker would say that.  Instant Payments and Credit Cards are two very different propositions covering different needs.

Was a time when PFM and Payments Fintechs, running off of bank accounts and credit card rails, would posture to disrupt banks - an obviously ridiculous posturing. 

I'm guessing this central banker is imitating those  Fintechs.

Also, going by India, A2A  rail is domestic, credit card rail is largely owned by foreign entities, so I won't rule out a bit of nationalism in the "A2A will kill Credit Card" posturing.

Credit cards with installment loans/Easy Payment plans (call them what you will) offer banks a simple way to join the BNPL rush - with special terms running up to interest free/24months etc...   Why would banks turn away from this.... 

Because regulator may not let them leverage such opportunities?

I don't know about Brazil but many major regs in payments space in India in the last 2-3 years - e.g. Positive Pay, Emandate, CoFT - have added friction to cheque and credit card payments and intentionally or unintentionally diverted cheque and credit card volumes to UPI.