politics
U.S. Opens Inquiry Into Brazil's PIX Instant Payment System
The Office of the U.S. Trade Representative has opened an inquiry into Brazil's PIX system, citing concerns over unfair competition with U.S. credit card operators. PIX, launched in 2020 and operated by Brazil's Central Bank, processed $7 trillion in transactions last year and is used by 178 million of the country's 213 million residents.
May 13, 10:44 AM·2m read1 source
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Brazil's instant payment system PIX faces an inquiry opened in July by the Office of the U.S. Trade Representative, which alleges the system imposes unfair competition on U.S. credit card operators by offering an alternative to their transaction fees.
PIX is governed by Brazil's Central Bank rather than private banks. It allows anyone with a Brazilian individual taxpayer identification, registered companies or government entities to transfer funds in real time provided they hold a Brazilian bank account.
The system also supports QR code payments. Launched in 2020, PIX processed $7 trillion in transactions last year. Individuals pay zero fees for transfers while some banks charge companies fees that remain significantly lower than those for regular bank transfers, which can take hours to complete.
The system has widespread adoption across income levels. A 21-year-old vendor of iced tea and cassava starch biscuits on Ipanema beach in Rio de Janeiro said PIX is the most used payment method because people no longer carry cash and instead use their phones.
A 57-year-old restaurant owner in Sao Paulo uses PIX to pay suppliers for transactions above 1,000 Brazilian reais, equivalent to about $200. He noted that many suppliers do not accept credit cards for such amounts, though most of his lunch clients still prefer credit cards or meal vouchers.
Large purchases are also completed through PIX. Houses, cars and even helicopters can be bought using the system, though hefty sums often require prior bank approval. Many large corporations in Brazil use PIX to pay workers.
