Will credit cards really END? Meet the possible replacement!

Is it true that credit cards will end in Brazil? Understand the trends for the future and learn everything about the product that could put an end to this payment method.

The world of finance is constantly evolving, and recently, the Central Bank of Brazil announced significant changes that could profoundly alter the way we use credit cards.

These changes suggest a possible decline in credit card popularity, raising the question: "Are credit cards really going away?"

In the article below, we’ll explore the latest news and what it means for the future of payments; check out!

Will credit cards really END? Meet the possible replacement! Credit: Reproduction

Why do Brazilians love credit cards?

Before we dive into the announced changes, it’s important to understand why credit cards are so popular in Brazil.

They offer convenience, security and the ability to pay in installments, which is especially attractive in an economy where affordable credit is crucial for many consumers.

However, high interest rates and late fees can be a financial trap for the unwary.

The Central Bank informed that Pix, an instant payment system, will enter a new phase in which it will be able to schedule payments.

This means that Pix can become a direct replacement for credit cards, offering a cheaper payment method with greater visibility for banks.

The president of the Central Bank, Roberto Campos Neto, believes that, over time, Pix will replace the credit card. However, only the future will tell if the prediction will come true.

New interest ceiling for credit cards

A welcome change for credit card users is the new rule that limits interest on revolving invoices to 100%.

Before this rule, interest could exceed double the unpaid amount, creating a cycle of debt for many consumers. With this change, anyone who pays only part of the bill will no longer be subject to such exorbitant interest rates.

Will installment payments end on credit cards?

Another big change is the proposal to limit card payments to 12 interest-free installments. This proposal comes from banks, which argue that to lower revolving interest rates, the installment plan must change.

This change is viewed with displeasure by some retailers, as half of purchases with credit cards are made in interest-free installments.

Crucial changes for Brazilians' finances

The recent changes announced by the Central Bank of Brazil indicate a future where credit cards may no longer be the protagonist in the payments market.

With Pix gaining strength as a cheaper and more efficient substitute, and new regulations on credit card use, consumers must prepare for a new era in the financial world.

These transformations aim for a fairer and more accessible system, but they also require adaptation and understanding on the part of users.

Post a Comment

Previous Post Next Post