In collaboration with IPA and the Central Bank of Brazil, researchers are conducting a randomized evaluation to assess whether information and a financial reward increases micro firms’ adoption of a digital payments platform.

New digital payment technologies have the potential to benefit both consumers and firms, but obstacles like a lack of information, distrust, and unreliable internet connection can limit adoption. In Brazil, the digital payment platform Pix is connected to users’ bank accounts and enables them to quickly make transactions through scanning QR codes. While the rollout of Pix has been successful—54 percent of the adult population made a transaction within the first year—consumers use the platform significantly more than firms. In particular, among small grocery stores and clothing stores, less than 10 percent of firms used Pix to make or receive a transfer in December 2022. 

In collaboration with IPA and the Central Bank of Brazil, researchers are conducting a randomized evaluation to assess whether providing information about the benefits of Pix and a financial reward for using it increases their adoption of the platform. A total of 1,750 small firms in municipalities with low Pix adoption rates will be randomly divided into the following groups:

• Receive information on Pix’s benefits and a financial reward if the firm receives a given number of Pix transactions.
• Receive information on Pix’s benefits and a financial reward if the firm makes a given number of Pix transactions.
• Comparison group

Researchers will evaluate perceptions of instant digital payment methods, promote the use of Pix in transactions with various stakeholders, and measure the impact of Pix on business environments—including how Pix adoption and usage affect suppliers, competitors, customers, and employees.

Results will be available in 2025.

Sources

^1,2. Central Bank of Brazil, Relatório de Economia Bancária 2021, accessed April 15, 2024 

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