Brazil's Pix payment system faces pressure from Visa and Mastercard

# Brazil's Pix Payment System Faces Pressure from Visa and Mastercard Source: [https://www.elciudadano.com/en/brazils-pix-payment-system-faces-pressure-from-visa-and-mastercard/04/04/](https://www.elciudadano.com/en/brazils-pix-payment-system-faces-pressure-from-visa-and-mastercard/04/04/) Original article:[PIX: el sistema de pago brasileño presionado por Visa y Mastercard](https://www.elciudadano.com/reportaje-investigacion/pix-el-sistema-de-pago-brasileno-presionado-por-visa-y-mastercard/04/04/) --- ## 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**[https://en.wikipedia.org/wiki/Pix_(payment_system)](https://en.wikipedia.org/wiki/Pix_(payment_system))\. 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[https://en.wikipedia.org/wiki/Pix_(payment_system)](https://en.wikipedia.org/wiki/Pix_(payment_system))\. ### **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[https://es.wikipedia.org/wiki/Pix_(Sistema_de_pago_electr%C3%B3nico)](https://es.wikipedia.org/wiki/Pix_(Sistema_de_pago_electr%C3%B3nico))[https://stripe.com/es/resources/more/pix-replacing-cards-cash-brazil](https://stripe.com/es/resources/more/pix-replacing-cards-cash-brazil)\. 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[https://stripe.com/es/resources/more/pix-replacing-cards-cash-brazil](https://stripe.com/es/resources/more/pix-replacing-cards-cash-brazil)\. The system operates through the**Instant Payments System \(SPI\)**of the Central Bank and is available at nearly all financial institutions in the country[https://es.wikipedia.org/wiki/Pix_(Sistema_de_pago_electr%C3%B3nico)](https://es.wikipedia.org/wiki/Pix_(Sistema_de_pago_electr%C3%B3nico))\. For individuals, the service is**completely free**; for businesses, the fees are significantly lower than those of credit cards \(around 0\.33% compared to the typical 2\-5% charged by cards\)[https://siliconcanals.com/sc-n-brazils-pix-payment-system-now-processes-more-transactions-than-visa-and-mastercard-combined/](https://siliconcanals.com/sc-n-brazils-pix-payment-system-now-processes-more-transactions-than-visa-and-mastercard-combined/)\. ## **Figures That Speak Volumes** Pix has experienced explosive growth\. In**2025**, the system processed**R$ 35\.3 trillion**\(approximately $6\.7 trillion\), marking a**33\.7%**increase from the R$ 26\.5 trillion of the previous year\. In the last year alone, nearly**80 billion transactions**took place, up from over 63 billion in 2024[https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/](https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/)\. From its launch until September 2025, Pix handled**196\.2 billion transactions**, moving**$16 trillion**, an amount exceeding**seven times Brazil’s annual GDP**in 2024[https://insights.ebanx.com/en/five-years-on-pix-approaches-8-monthly-transactions/](https://insights.ebanx.com/en/five-years-on-pix-approaches-8-monthly-transactions/)\. Currently, Pix boasts**over 180 million users**, with 162\.8 million being individuals, representing approximately**93% of Brazil’s adult population**\. There are more than**617 million registered accounts**and over**920 million active Pix keys**\. In total,**930 financial institutions**participate in the system[https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/](https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/)\. The daily record was set on June 6, 2025, with**276 million transactions**in a single day, significantly surpassing the combined transaction volume of Visa and Mastercard in Brazil[https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/](https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/)\. According to Central Bank data, at the beginning of 2025, Pix was managing over**224 million daily transactions**, far exceeding the total of both American giants combined[https://siliconcanals.com/sc-n-brazils-pix-payment-system-now-processes-more-transactions-than-visa-and-mastercard-combined/](https://siliconcanals.com/sc-n-brazils-pix-payment-system-now-processes-more-transactions-than-visa-and-mastercard-combined/)\. **Market Evolution of Payments in Brazil \(2025\):** - **Pix**: 49% of financial transactions - **Debit and Credit Cards**: 14% each - **Cash**: 6% \(compared to 83% recorded in 2021\) ## **Visa and Mastercard Pressure: A Battle of Giants** The success of Pix has not gone unnoticed by American credit card multinationals\. Since 2022, Mastercard Brazil’s CEO, Marcelo Tangioni, has voiced his concerns:*“Pix is great, beneficial for the industry\. What’s not great is that it falls under the Central Bank\. It can’t regulate and compete at the same time”*[https://revistaforum.com.br/economia/pix-esta-na-mira-da-mastercard-desde-2022-veja-o-que-disse-ceo/](https://revistaforum.com.br/economia/pix-esta-na-mira-da-mastercard-desde-2022-veja-o-que-disse-ceo/)\. The reason is clear: Pix has significantly eroded Visa and Mastercard’s market share in Brazil\. Estimates suggest that between 2021 and 2024, the system resulted in losses nearing**R$ 12 billion**\(approximately R$ 6\.5 billion for Visa and R$ 5\.3 billion for Mastercard\), due to much lower fees \(0\.33% vs\. the average 2\.3% charged by cards\)\. In September 2025, the Trump administration openly supported Visa and Mastercard, with the**U\.S\. Trade Representative \(USTR\)**launching a formal investigation into Pix, claiming it creates an**“unfair competitive disadvantage”**for U\.S\. firms in the sector[https://www.bloomberg.com/news/articles/2025-09-22/brazil-pix-ustr-investigation-weighs-arguments-of-visa-mastercard](https://www.bloomberg.com/news/articles/2025-09-22/brazil-pix-ustr-investigation-weighs-arguments-of-visa-mastercard)[https://www.bloomberglinea.com/negocios/trump-respalda-a-visa-y-mastercard-y-pone-bajo-presion-al-sistema-de-pagos-pix-en-brasil/](https://www.bloomberglinea.com/negocios/trump-respalda-a-visa-y-mastercard-y-pone-bajo-presion-al-sistema-de-pagos-pix-en-brasil/)\. A White House report from April 2026 once again highlighted Pix as a**“detrimental system for global credit card companies”**\. The Brazilian government responded firmly\. President Lula stated:**“No one will make us change Pix”**, and launched a social media campaign with the slogan*“Pix is ours, my friend”*, adopting an explicitly nationalist tone[https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/](https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/)\. The Brazilian Federation of Banks defended the system, arguing it follows an**“open model”**available to all financial entities and that, by not being a commercial product, it**“promotes competition”**[https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/](https://www.infobae.com/america/agencias/2025/07/26/el-pix-el-exitoso-sistema-de-pagos-electronicos-de-brasil-que-enfada-a-trump/)[https://www.eldebate.com/economia/20250726/inventado-brasil-futuro-dinero-asi-pix-sistema-amenaza-visa-mastercard_320846.html](https://www.eldebate.com/economia/20250726/inventado-brasil-futuro-dinero-asi-pix-sistema-amenaza-visa-mastercard_320846.html)\. ## **Recent Innovations and the Future of Pix** Far from stagnating, the Central Bank of Brazil continues to enhance Pix’s functionalities\. Recent innovations include: - **Automatic Pix**: launched for recurring payments \(subscriptions, bills\), with a monthly increase of 41% in volume and 34% in the number of subscriptions in its first year\. - **Proximity Pix**: enables payments without internet, using NFC technology[https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/](https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/)\. - **International Pix**: facilitates payments for Brazilian tourists abroad with real\-time exchange rates\. - **Installment Pix**: a feature that allows payments to be divided, directly competing with traditional credit options\. The Central Bank has also strengthened security with the**Special Refund Mechanism \(MED\) 2\.0**, which allows tracking funds in cases of fraud, a measure mandated since February 2026[https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/](https://finsidersbrasil.com.br/pagamentos/pix/pix-movimenta-r-353-trilhoes-em-2025/)\. **El Ciudadano**