Brazilians increasingly use cards instead of cash

Brazil is expected to witness growth during 2020

Brazil

Brazilians increasingly use cards instead of cash. Source: unsplash.com

According to GlobalData, credit card balance growth is forecasted to remain at 7.8% in 2020, although 2021 will bring higher growth rates.

Along with that, mortgage loan balances will see the biggest drop off in growth, to just 2.8% in 2020, meanwhile many countries are seeing significant declines in this category. The report forecasts growth of 13.5%, compared to 5.8% previously in 2021, in this category.

Credit card transactions will rise at the expense of cash. This is because consumers want to avoid disease vectors and attractive credit offers from banks. Santander offered in would offer double rewards points on online purchases made via its cards in March 2020, for example
Resham Karira, GlobalData’s retail banking analyst

At the same time, the decline in consumer confidence will cause a short-term drop in demand for loans and taking on any debt. However, safer retail deposits will rise. By the end of 2020 deposit holdings are forecasted to boost by 14.4%.

We’ve reported that real GDP growth of major economies such as the US, Eurozone, Russia, South Korea, and Australia is expected to drop sharply this year. Nevertheless, most economies are forecasted to face a V-shaped recovery of GDP growth in 2021.

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