Digital payment system PIX has won the hearts of millions of Brazilians, and the ire of the Trump administration.
The Office of the U.S. Trade Representative in July launched an investigation into Brazilian trading practices across several industries, including digital payment services.
The USTR says in a report to the U.S. Congress that PIX has an unfair advantage over U.S.-based companies because it is overseen and operated by the Central Bank of Brazil. The office also says the Brazilian government disadvantages U.S. companies by imposing a network usage fee and refusing to share consumers’ personal data.
Don’t Miss:
Trump ordered the investigation, according to the USTR’s statement announcing the probe that is also looking into “unfair” tariffs on U.S. exports and other matters allegedly affecting U.S. businesses.
“Brazil’s policies and measures do not restrict the operations or undermine the competitiveness of U.S. companies engaged in electronic payment services,” Brazilian Foreign Minister Mauro Vieira said in an August letter to U.S. Trade Representative Ambassador Jamieson Greer.
The USTR could impose additional tariffs on Brazilian imports if it determines Brazil gave PIX an unfair advantage.
PIX is a digital payment system that operates similarly to Zelle or Venmo. Users can send or receive instant payments through the system, linked to their bank account or a digital wallet.
While Zelle is controlled by a consortium of banks, PIX is operated by Brazil’s central bank, which launched the service in 2020.
Trending: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming’s Next Big Platform
It quickly gained popularity among users and businesses. More than 170 Brazilians, or roughly 80% of the population, actively use PIX, according to the Central Bank of Brazil.
Its success has piqued the interest of other countries exploring similar systems, according to Bloomberg. Argentina and Uruguay already allow Brazilian tourists to use PIX to pay for restaurant and hotel bills.
The USTR has been keeping an eye on PIX since 2022 to ensure Brazil “facilitates a level playing field for all market participants,” according to an agency report.
No U.S. fintech or credit card companies submitted comments as part of the probe, according to the USTR’s website. Some U.S. trade groups and the U.S. Chamber of Commerce said they agreed PIX had an unfair advantage since the BCB oversees and operates the system, and requires all financial firms in Brazil to accept it as a payment method.