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Brazil’s payment system puts credit card firms to the test
Pix is a free instant payment system that the Brazilian Central Bank launched in 2020. It has obliterated expensive electronic funds transfers (EFTs) in Brazil, and is well on its way to replace payments that were traditionally made with credit cards issued by companies such as Visa, Mastercard and Amex.
Everyone seems to rave about it, except Trump (and possibly his vocal Brazilian supporters, who bizarrely applaud Trump’s sanctions and tariffs imposed on their own country). When on July 15 he announced his investigation of Brazil’s “unfair trading practices” (which ultimately resulted in the 50% import duties on Brazilian exports to the US), one of the justifications for the investigation was stated as follows: “The investigation will seek to determine whether acts, policies and practices of the government of Brazil related to digital trade and electronic payment services … are unreasonable or discriminatory and burden or restrict US commerce.”
Yet Brazil has not prohibited anyone from using American-branded credit cards. There are still some dinosaur businesses in Brazil that only accept credit cards, and all businesses that accept Pix payments still accept credit card payments.
But credit card payments in Brazil are undoubtedly dwindling, as the convenience of Pix rapidly overtakes credit cards. That is not a policy aimed specifically at US credit card companies, but rather a reflection that outdated credit card payment systems have not kept up with the latest disruptive technology.
For that America should rather ask why its own innovation has lagged behind that of countries such as Brazil that it traditionally regards as its backyard. Maybe it has something to do with the sizeable portion of the American population that believes humans and dinosaurs cohabited planet earth in the last 6,000 years.
Read more at https://www.businesslive.co.za/bd/opinion/2025-09-19-emile-myburgh-brazils-payment-system-puts-credit-card-firms-to-the-test/ [businesslive.co.za]
