Payments Snapshot in Brazil: Coronavirus (COVID-19) Sector Impact
The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
The IMF anticipates a 6.1% decline in Brazils GDP in 2020, while unemployment will rise to 14.1%. This will impact the countrys payment industry.
In an attempt to avoid or mitigate contraction in the overall economy, the government has launched several schemes. On March 30, 2020 the government passed a bill granting emergency aid of BRL600 ($149.28) per month to informal workers and BRL1,200 ($298.57) per month to mothers supporting their family. On April 1, 2020 the government launched the Emergency Employment Maintenance Program to provide financial aid for working individuals whose income is impacted due to reduced working hours, wages, or the suspension of contracts. The program is estimated to benefit 24.5 million workers and preserve 8.5 million jobs, costing the government BRL51.2bn ($12.7bn.
This report focuses on the impact of the Coronavirus outbreak on both the economyand the cards and payments industry in Brazil. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat Coronavirus.
- The pandemic will have a significant impact on the countrys tourism and travel industry due to the resulting travel restrictions as well as a slump in consumer spending. According to the Brazilian Tour Operators Association, tour operators lost BRL3.9bn ($1.0bn) in revenue for January-March 2020.
- The adoption of contactless technology has been slow in Brazil, but the current situation is pushing Brazilian consumers to favor contactless payments in order to avoid exposure to disease vectors. According to a survey by mobile POS provider iZettle, the number of contactless payments grew by 36% from January to March 2020 among its merchant base in Brazil.
- Online spending is also likely to surge as wary consumers are staying home and using online channels to purchase goods. To avoid public contact and due to fears of shortages, consumers are increasingly opting for online channels in order to purchase daily essentials. Carrefours online sales in Brazil increased by over three times in March 2020 compared to the previous month.
Reasons to Buy
- Make strategic decisions using top-level revised forecast data on the Brazilian payment industry.
- Understand the key market trends, challenges, and opportunities in the Brazilian cards and payments industry.
- Receive a comprehensive insight into payments market in Brazil.
Total Payment Cards Market vs. Pre-COVID-19 Forecasts
Debit Cards Payment Market vs. Pre-COVID-19 Forecasts
Credit and Charge Cards Payment Market vs. Pre-COVID-19 Forecasts
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