What Is PIX? Why Brazil's Payment System Is Bothering Donald Trump

Published 14 July 2026 · us

What Is PIX? Why Brazil's Payment System Is Bothering Donald Trump Published By, Last Updated: July 14, 2026, 22:50 IST Washington alleges that the central

What Is PIX? Why Brazil's Payment System Is Bothering Donald Trump Published By, Last Updated: July 14, 2026, 22:50 IST Washington alleges that the central bank, as owner and regulator of PIX, faces a conflict of interest and puts US companies at a disadvantage. According to the central bank, PIX accounts for 54 percent of all payment transactions in Brazil, with millions of transfers per day -- just six years after its launch. (Photo: AFP) Whether buying a chilled coconut at the beach or paying rent, Brazil’s free PIX system has become the dominant way of making payments in Latin America’s largest economy, with just a smartphone. US President Donald Trump does not like it one bit. The payment system, launched in 2020 by the central bank, has become a bone of contention between Washington and the government of President Luiz Inacio Lula da Silva, who is seeking re-election in three months. The United States argues that PIX amounts to unfair competition and hurts US credit card companies. “You don’t have to pay any fees for PIX; with banks, you have to pay credit card fees, annual fees, banking fees, fees for this and that," Paulo Ricardo Conceicao told AFP at his drinks kiosk on Copacabana beach. The perceived unfairness of the PIX system and other alleged discriminatory trade practices has led the US to threaten a 25 percent tariff on some Brazilian exports.

A decision on this measure is expected in the coming days. What Is PIX? According to the central bank, PIX accounts for 54 percent of all payment transactions in Brazil, with millions of transfers per day — just six years after its launch. Major financial institutions are obliged to offer the service to their clients, who simply open their banking app and send a payment in seconds using an identifier such as an identity number, key, or email address. Payments can be even easier using a merchant’s QR code. PIX “successfully reached millions of Brazilians who were previously excluded from the traditional banking system," Brazilian Foreign Minister Mauro Vieira said in a letter to the Office of the United States Trade Representative (USTR). The system is used by 80 percent of Brazil’s 212 million people. “Before, we had to carry cash and a bunch of stuff in our wallets. Now, you just grab your phone and make a PIX transfer. I think it’s made life a lot easier for everyone," Ingrid Ferreira, a 32-year-old civil servant, told AFP in Brasilia. What is the United States’ complaint? Washington alleges that the central bank, as owner and regulator of PIX, faces a conflict of interest and puts US companies at a disadvantage. The Trump administration complains about BCB requirements that banks feature PIX on the home screens of their apps and refrain from charging user fees.