Brazil’s answer to the UPI, the PIX system, has a newfound enemy: US President Donald Trump. The country’s homegrown instant payment platform, launched in late 2020, quickly became an essential part of daily life, with over 180 million Brazilians and millions of businesses sending money in seconds—free, anytime they wish.
Much like the impact of UPI in India, PIX has already handled record-setting transaction volumes, toppling credit cards as the preferred e-commerce method in much of the country.
But the White House is not happy.
PIX, the Brazilian brother of UPI
Like UPI, PIX is run under a system governed by the central bank, links to any bank account or fintech app, and lets anyone pay anyone—using a phone number, email, or QR code within their preferred banking app.
Just like in India, Brazil saw more people included in the financial system and a sharp drop in cash usage.
The only ones who are not happy are the US government. It is almost as if private payments giants Visa and Mastercard went crying to the Trump administration. And now, the White House argues that PIX tilts the playing field. They are right—it somewhat levels the playing field and cuts out the middlemen. But that also comes with more regulatory oversight.
US officials say that Brazil puts American competitors at a disadvantage by making PIX mandatory for banks and controlling payment data.
US capitalism vs Brazil digital revolution
“Open access to data and fair competition are vital for international commerce,” a US Treasury spokesperson told NYT, a clear jab at PIX’s streamlined, government-controlled approach.
But if we look beyond the reductive capitalist approach by the US, we discover the Latin American nation’s move is tilted more toward protecting its sovereignty—something that Trump has systematically tried to infringe upon with all BRICS nations.
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Banco Central do Brasil (BACEN), the country’s apex lender, has already made its stance clear—PIX is a tool of sovereignty and inclusion, not exclusion.
PIX, very much like UPI in India, gives common Brazilians the keys to the digital economy. If US companies want to compete, they need to adapt, not complain. But given Trump’s track record, he might retaliate.
If the US moves to pressure or restrict Brazil’s payment ecosystem, Trup can then move to use UPI too as a bargaining chip in the ongoing global trade talks. But for now, South America’s digital revolution is in the line of fire.
