The impact of instant payment systems on financial and labor market outcomes: evidence from Pix

In Brazil, small and micro-entrepreneurs play a pivotal role in generating income and jobs. However, they encounter various barriers to business growth, including low adoption of productivity-enhancing technologies and exclusion from the formal economy. This project focuses on the adoption, usage, and impacts of one of the world's largest instant payment systems, Pix, introduced by the Central Bank of Brazil (BCB) in 2020. The researchers will combine primary, secondary, and qualitative data to assess the impacts of Pix adoption on business productivity, employment, financial outcomes, as well as firms’ formalization and reliance on cash.