Brazil’s Central Bank Promotes Pix as Cross-Border Payment Solution

Brazil’s central bank is reportedly looking to take the country’s instant-payment system, Pix, to the global stage.

With policymakers from the Group of 20 nations meeting in Sao Paulo to discuss faster and cheaper cross-border payments, the Central Bank of Brazil considers Pix to be a possible solution, Bloomberg reported Tuesday (Feb. 27).

Pix has quickly become a household name in the country, with over 160 million users adopting the payment method since its launch by the central bank in late 2020, according to the report. Its rapid uptake in Brazil has even surprised its creators, becoming a ubiquitous app in the country within months.

This popularity has attracted interest from authorities in Latin America, Europe and Africa, the report said.

Now, Brazil’s central bank is exploring agreements to connect Pix with platforms worldwide, per the report. Italy has already expressed interest in a bilateral agreement with Pix.

The Bank of International Settlements sees the potential for Pix to go global through its Nexus project, per the report. Five Asian countries are already testing the platform for instant cross-border transactions.

Brazilian tourists in neighboring countries like Argentina and Uruguay can already use Pix to pay for services like restaurants and hotels, according to the report. The system allows Brazilians to pay in reais through a QR code linked to a digital wallet, while businesses receive their money instantly in domestic currency, U.S. dollars or stablecoins.

Brazil’s central bank chief Roberto Campos Neto sees Pix as a tool to build a more efficient and inclusive financial system in Brazil, the report said. While around 30% of the country’s population lacked bank accounts before Pix’s launch, only 16% of the population is now without a bank account.

PYMNTS Intelligence has found that 82% of Brazilian consumers said Pix makes a positive or very positive impact on their lives.

Forty-three percent of Brazilian consumers use the instant payment platform daily, while only 29% do the same with credit cards and 21% do so with cash, according to “Promising Payments: Digital Payments Gain Ground in Latin America,” a PYMNTS Intelligence and Galileo collaboration.