In just a few years, Brazil has created something that is reshaping global payments. Pix, the instant payment system launched by the Brazilian Central Bank, has not only challenged Visa and Mastercard — in many ways, it has surpassed them. Yet this success is now facing growing pushback, especially from the United States. For companies eyeing Brazil as a key market, this development is impossible to ignore.

Pix launched in late 2020 and grew at an astonishing pace. Today, more than 180 million users — roughly 93 percent of the adult population — rely on it. In 2025, the system processed transactions worth around 35.3 trillion Brazilian Reais, a jump of over 33 percent from the previous year. At peak times, Pix handles more than 200 million transactions per day, outpacing Visa and Mastercard combined in the Brazilian market. For individuals, transfers are free. Merchants pay very low fees, often around 0.33 percent — a fraction of the 2 to 5 percent typical with credit cards.

The system is incredibly simple: users send money in seconds via app, QR code, or a key (phone number, email, or CPF). It works 24/7. As a result, cash has lost much of its importance in daily transactions. Pix has simplified life for millions of Brazilians and significantly boosted financial inclusion.

Tension with Global Card Giants

Such rapid success was bound to create friction. Estimates suggest Visa and Mastercard lost around 12 billion Reais in revenue in Brazil between 2021 and 2024 alone. The reaction was predictable. Mastercard’s Brazil CEO publicly criticized the Central Bank for acting as both regulator and competitor. Since 2025, the issue has escalated to the US government level. Under the Trump administration, the USTR (United States Trade Representative) has been reviewing Pix for alleged anti-competitive practices. A White House report even described it as “harmful” to global credit card providers.

Brazil’s response has been firm. President Lula made it clear: “Nobody is taking Pix away from us.” The slogan “Pix is ours, my friend” turned the system into a matter of national pride. Banking associations emphasize that Pix is an open platform available to all financial institutions, actually increasing competition rather than limiting it.

Continued Innovation

Instead of slowing down, Brazil’s Central Bank keeps expanding Pix. New features include Automatic Pix for recurring payments such as subscriptions and bills, Proximity Pix for offline NFC-based transfers, and international options aimed at travelers. A new “Parcelado” installment feature is also entering the space traditionally dominated by credit cards. Security improvements, such as better fraud refund mechanisms, continue to strengthen user trust.

Opportunities for Market Entrants

For companies from the USA, Germany, China, and other countries expanding into Brazil, Pix offers major advantages. Extremely low transaction costs reduce barriers for both e-commerce and physical retail. The system’s widespread adoption makes it easier to reach customers quickly — including segments that previously had limited access to formal financial services. Smart market entrants integrate Pix from day one rather than relying solely on international cards.

At the same time, the current conflict highlights how political payment systems can become. Local solutions are gaining ground worldwide, and regulatory risks are now part of doing business in many emerging markets. We see similar patterns in China with its domestic platforms and in other fast-growing economies. Companies expanding across borders should not depend exclusively on global card networks. Instead, they need to embrace strong local innovations while closely monitoring political and regulatory developments.

Pix is more than a payment tool. It shows what happens when a country takes control of its own digital infrastructure — with impressive results. For anyone serious about growing in Brazil, Pix remains a central piece of the puzzle. The coming months will reveal how the pressure from the US develops. One thing is already certain: Pix is here to stay.

This evolution makes Brazil an even more dynamic market for cross-border expansion. Companies that adapt to local realities like Pix will have a clear competitive edge.

Can you afford not to enter the Brazilian market? Talk to us, we’ll help you succeed in Brazil.