In Latin America, Brazil leads in financial inclusion with 70% adoption of debit or credit cards. The country has recorded 55% card usage and an outstanding level of real-time payments. This positive trend is contributed by the elimination of barriers to payment infrastructure in the country.

These are the findings of a joint study between Nubank and Mastercard, which highlighted the path that individuals pursue toward financial inclusion. The study, which is based on data from 3.6 million Nubank's customers, highlighted the impact of financial inclusion and long-term economic growth.

Unlocking Financial Inclusion

Speaking about the report, Cristina Junqueira, the Co-Founder and Chief Growth Officer at Nubank, mentioned: "Although access to financial services in and of itself has had a major impact, advancing the literacy journey on these topics brings greater and more sustainable benefits not only to individuals but to the community as a whole."

.@Nubank and @Mastercard Exclusive Study Reveals Path to Advancing Beyond Access Toward Financial Health.

Read more: https://t.co/2V1jHJKfVo#study #fintech #finance #FinancialIT

— Financial IT (@financialit_net) April 19, 2024

The study noted that Brazil has significantly progressed in financial inclusion compared to other countries in Latin America. The World Bank Global Findex shows that the country has 70% card penetration and a growing trend in real-time payment usage.

Additionally, the report underscored the importance of providing financial access to underserved populations. Remarkably, 60% of Nubank's customers transitioned from access to usage within 24 months, irrespective of income level. Notably, prepaid cards have enabled most users to access loan products and investments.

Addressing Barriers

However, despite this progress in financial inclusion, there are barriers. While 84% of adults in Brazil have access to financial accounts, many lack the necessary financial literacy to maximize the benefits. To address this challenge, the study recommended active product usage and financial education initiatives.

Mastercard's Division President for Brazil, Marcelo Tangioni, added: "The journey to financial security and health is non-linear and full of obstacles. The only way to accelerate this journey is by understanding the barriers and then building and deploying inclusive digital solutions."

"Through this study, we have clear evidence that frequent, consistent, and responsible use of digital payment tools is critical to building trust and putting people on a path towards a more sustainable financial health."

Last year, Brazil's largest cryptocurrency exchange, Mercado Bitcoin, secured a payment institution license from the country's central bank. This approval allows the exchange to operate as a payment institution and electronic money issuer. As a licensed payments provider, the exchange offers a range of digital banking services.