A survey released by PayPal on Monday (18) indicates that Brazilians are ready to give up physical money, also called “in kind”.
The study named “Third Wave of FinTech Innovation” heard about 4,000 people in the United States, Germany, Brazil and China, where they could learn more about people’s views on digital ecosystems.
In this study, one of the topics discussed was about the digital currencies of central banks, the CBDCs.
It is worth remembering that PayPal is a company that has been working with fiat money in a virtual format for some years and has recently entered the cryptocurrency market, after releasing Bitcoin trading to its customers in the United States and the United Kingdom.
“The pandemic has accelerated the digitization of everything, including financial services. Some think that (re)bundling and consolidation is inevitable in the wake of the COVID-19 pandemic, while others argue that decentralized technologies like Bitcoin make unbundling the crux of the next generation of FinTech innovation.”
In a global study, PayPal does not see a consensus on the preference of the world’s consumer in terms of payment methods
For PayPal, a third wave of innovations should take place in the fintech environment, which tends to emerge from emerging solutions.
Comparing the reality of four countries from different regions, PayPal ordered this search to seek to understand the behavior and preference of consumers. One of the realities pointed out in the study is that the pandemic helped in the digitization of money, but currency in kind is still a present reality.
The preferences for physical money are for reasons of better control of expenses, without fees and anonymity. For PayPal, these aspects should shape interest in new currencies.
“These characteristics of money are important to users and should provide an important context when considering future forms of money.”
But the sample heard by the study indicated that there is a promising future for digital money, especially in Brazil, with people justifying this method of payment as more “convenience, flexibility and security”.
According to the survey, 79% of Brazilians interviewed by PayPal are ready to give up physical money, being the main country in this regard. The country that least wants the money in digital format is Germany.
“Seventy-nine percent of respondents in Brazil and 72% in China like the idea of not having to carry cash or coins, followed by 58% in the US and 40% in Germany.”
Brazilians Are Interested in Central Bank Digital Currency, Says PayPal Survey
With the growth of the issue of Central Bank Digital Currencies (CBDC), study participants were asked whether they would accept to use these systems. Surprisingly, Brazilians are among those who have confirmed the most that they will use these coin versions, with 93% of listeners likely to accept.
For PayPal, as 1 of every 5 dollars invested in 2021 was in fintechs, governments should watch this sector closely, mainly to formulate policies on user data usage and solution automations.