GoKawiilOriginal article: PIX: el sistema de pago brasileño presionado por Visa y Mastercard
Brazil’s Pix Payment System Faces Pressure from Visa and Mastercard
In just over five years, Brazil has achieved what few countries have managed: establishing a digital payment system that not only competes directly with American giants Visa and Mastercard but has also surpassed them in transaction volume. However, this success has ignited a geopolitical and commercial battle that threatens to hinder this financial revolution. The administration of Donald Trump, influenced by credit card companies, has launched a commercial investigation into Pix, alleging anti-competitive practices, prompting Brazilian President Luiz Inácio Lula da Silva to proclaim a nationwide campaign: “Pix is ours, my friend”.
El Ciudadano Team
A Financial Giant in Record Time
Pix is the instant payment system developed and managed by the Central Bank of Brazil (BCB). First announced in February 2019, the system officially began operating on October 5, 2020, and became fully functional by November 16, 2020. The name is a play on words combining “Pi” (for Pagamentos Instantâneos) and “Tix” (for Transações instantâneas X), reflecting its emphasis on speed, technology, and versatility.
How It Works
Pix enables real-time money transfers between bank accounts, available 365 days a year, 24 hours a day, in just seconds. Users register “Pix keys,” which can be their phone number, email, national ID number (CPF or CNPJ), or a random key generated by the system.
The process is straightforward: the payer opens their bank application, selects Pix, enters the recipient’s key or scans a QR code, confirms using biometric authentication or a PIN, and the money is transferred instantly. Both parties receive real-time confirmation. The system operates through the Instant Payments System (SPI) of the Central Bank and is available at nearly all financial institutions in the country.
For individuals, the service is completely free; for businesses, the fees are significantly lower than those of credit cards (around 0.33% compared to the typical 2-5% charged by cards).
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