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In Brazil, the free and instant mobile payment system Pix challenges US dominance (www.lemonde.fr)

submitted 1 week ago by [email protected] to c/[email protected]

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[-] [email protected] 6 points 1 week ago* (last edited 1 week ago)

Great application of public policy to solve basic, system-wide problems that the private sector solves poorly.

Launched by the Central Bank of Brazil in November 2020, the mechanism became so popular that it has already overtaken credit card and cash transactions.

Transfers carry no extra cost, and the money arrives instantly in the user's account.

In the country with the second-highest rate of online credit card hacking in the world, Pix is also considered the safest means of payment, according to a study by the Central Bank of Brazil in 2024. "If I get mugged, at worst the assailant will steal my phone. My earnings will be safe in my account," explained Eduardo Resende Gonçalves.

a major step forward for banking inclusion for the poorest citizens

Once this first step is taken, the person using Pix has access to a bank account

Of course, such obvious public-sector solutions piss off the US:

Six days after the United States announced new 50% customs duties against Brazil, on July 15, the Office of the United States Trade Representative (USTR) cited the rise of Pix as a reason for opening an investigation into the commercial practices of the South American giant: "Brazil also appears to engage in a number of unfair practices with respect to electronic payment services, including but not limited to advantaging its government-developed electronic payment services."

The closest the US has is something like Zelle through participating banks. Interbank transfers mostly aren't free & instant, yet: ACH transactions between banks take days & are closed on weekends. RTP & FedNow are still not widely adopted.

this post was submitted on 30 Jul 2025

128 points (98.5% liked)

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