Pix hits a wall: Trump Administration’s opposition to its US expansion

Iulia Mușat, Junior News Editor at The Paypers, analyses the Trump Administration’s recent actions on Brazil’s instant payment platform, Pix, and explores the implications of the US’s decision to launch an investigation into the country’s potential unfair trading practices.  

Since beginning his second and current term as US President in January 2025, Donald Trump has implemented several initiatives focused on increasing the nation’s global influence. These efforts range from signing the GENIUS Act into law and promising to make the US the ‘crypto capital of the world’ to changing course for the Consumer Financial Protection Bureau and starting a trade war that could negatively impact even the US payment industry. Most recently, President Trump has turned his attention to another area of the fintech sector, initiating a probe into Brazil’s Pix system and the country’s alleged anti-competitive practices.    

Pix explained

As part of the Brazilian instant payment ecosystem, Banco Central do Brasil (BCB) developed Pix, launching it on 16 November 2020  and enabling its users to send and receive payment transfers at any time, almost instantly, whether on business days or not. Through Pix, BCB aimed to reduce financial costs while enhancing security and improving the customer experience. Digitisation and increased market competition were also among its goals, with the instant payment scheme seeking to increase financial inclusion and bridge the gap in retail payment instruments available to the Brazilian population.

Fast forward to June 2024, PagBrasil, a Brazilian fintech company that processes payments for multinational ecommerce businesses, rolled out two additional Pix instant payment solutions, namely Pix Roaming and International Pix. For our purposes, we will focus on International Pix, which allowed Brazilians to utilise the Pix instant payment system at participating physical stores while travelling abroad. The payment solution could be used by Brazilians travelling to Argentina, Uruguay, Chile, and the US.

One year later, in July 2025, PagBrasil partnered with Verifone to introduce an international Pix Payment solution for Brazilian shoppers in the US. The in-store alternative payment method allowed customers to pay in BRL using Pix while shopping in the US, helping them save on foreign exchange conversion fees and taxes. As part of the agreement, Verifone became the exclusive provider of PagBrasil’s International Pix payments in the region. For US merchants and businesses, they could benefit from reduced processing costs and fewer chargebacks, as transactions made via Verifone were processed at nearly 2% with no additional charges. As detailed by Ralf Germer, CEO and co-founder of PagBrasil, ‘the partnership with Verifone will allow the more than 1.9 million Brazilian tourists who visit the US annually, as well as the community of over 2 million Brazilian residents in the country, to make payments via Pix in US stores. With collaborations like this one, it is now possible to make Pix payments in key Latin American markets such as Argentina, Uruguay, Paraguay, Chile, Peru, and Mexico, as well as in Asia and Europe.’

Pix’s US controversy

After crossing borders into the US, Pix began facing criticism from the Trump Administration, with the Office of the United States Trade Representative (USTR) initiating an investigation on 15 July 2025 of Brazil under Section 301 of the Trade Act of 1974. At President Donald Trump’s direction, Ambassador Jamieson Greer started a probe into ‘Brazil’s attacks on American social media companies as well as other unfair trading practices that harm American companies, workers, farmers, and technology innovators’. He added that ‘after consulting with other government agencies, cleared advisers, and Congress, it was determined that Brazil’s tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.’

But how does Pix fit into this? By the USTR, Pix is seen as potentially detrimental to foreign digital companies, with Reuters confirming that the investigation references Brazil’s instant payment platform as discriminatory against US firms. Given its prominence, with Pix becoming a substantial part of the financial lives of Brazilians and witnessing significant growth since its launch, US card companies such as Visa, Mastercard, and American Express face difficulties in entering the Brazilian market. The platform was openly criticised by Mastercard Brazil’s president, Marcelo Tangioni, as detailed by the Financial Times, with him claiming that it creates a conflict of interest because BCB is acting as both a regulator and operator of Pix. He stated that the regulator also actively participates in the market, competing with the private sector it supervises.

Furthermore, Meta could also cast doubt on Pix, as its WhatsApp platform, which rolled out a digital payments system in Brazil just months before BCB introduced Pix, was blocked based on competition and data privacy grounds. A relaunch was allowed a year later, six months after Pix’s operations officially began. At that time, WhatsApp alleged that BCB was concerned that its payments system might come as a competitor to Pix.  

From a political standpoint, before the USTR’s probe was announced, the Trump Administration took into consideration imposing 50% tariffs on Brazilian exports, a move that corresponded with demands for Brazil to stop any legal proceedings against former President Jair Bolsonaro. In the latest turn of events, Brazil’s Supreme Court decided on 24 July 2025 not to order the arrest of Jair Bolsonaro for an isolated breach of court-imposed restrictions; however, regulators warned he could be imprisoned for future violations.

The US’s objections go further than Pix and payments, as the USTR states concerns regarding digital trade, financial services, intellectual property, and Amazon deforestation. Even if Pix seems to be the central point of the discussion, it can also serve as a strategic pawn in Washington’s efforts to sway Brazil’s economic stance. 

Brazil responds

The first to protect the platform was Brazil’s President, Luiz Inácio Lula da Silva, who issued a statement in which he emphasised that ‘Pix is Brazil’s. We will not accept attacks on Pix, which is the patrimony of our people.’, establishing the payment system as a representation of national identity and development.  Additionally, Brazil’s Government responded with a social media campaign with the slogan ‘PIXéNosso, My Friend’.

Additionally, Bruno Diniz, Managing Partner at Spiralem, told us that ‘Pix has proven that a public digital payment infrastructure can boost financial inclusion by bringing millions of people into the financial system and modernise the financial sector with faster, cheaper, and more accessible transactions. In just four years, Pix now reaches over 95% of Brazilian adults with instant, 24/7 transactions that are usually free. This public platform has levelled the playing field by opening up competition in the payments market. Besides that, Pix creates a fair environment where all providers must innovate, ultimately benefiting consumers and businesses. Like other countries, including the US, look to modernise payments, Pix stands as a model of how inclusive, efficient public infrastructure can drive economic progress on a global scale.’

Pix also chose to continue its expansion across the US, with Verifone and PagBrasil planning to expand to cities such as Florida and New York, two locations considered as favourites of Brazilians in the US. This new integration enables North American retailers to activate Pix directly on Verifone, with Brazilian tourists paying as if they were in their country. Through a QR code generated immediately, they can complete the payment using the bank’s app, with the amount being directly converted into reais and already integrated with the IOF of 3.5%.

Talking about the collaboration with Verifone, Alex Hoffmann, CEO and co-founder of PagBrasil, mentioned that ‘the company has been PagBrasil’s ecommerce client for over ten years, with the company being one of the largest acquirers in the world. When PagBrasil launched International Pix, the company began prospecting both new partners and those with whom it already had a relationship, such as Verifone. Due to its scale, the negotiation process was long, with almost two years of conversations and visits happening before an agreement was reached. Now, with the negotiation process completed, PagBrasil is presented with the challenge to convince US merchants to accept Pix, since the market logic is very card-oriented. Brazilian travellers are already convinced of the convenience of this instant payment method. Understanding this scenario, Verifone is willing to invest in marketing, field teams, and operational resources. PagBrasil is confident that this partnership will unlock new business opportunities in both countries, benefiting Brazilian consumers and US merchants alike.’

Looking ahead

Currently, the situation is under no circumstances resolved. Concerning the US, the USTR plans to hold a hearing related to this investigation on 3 September 2025, with the agency stating that, to ensure consideration, interested individuals should submit written comments, requests to appear at the hearing, along with a summary of their testimony, by 18 August 2025. Depending on the outcome, the US could impose new tariffs on Brazil or pursue structural changes to the country’s payment system, including removing Pix from the CBC’s control.

When it comes to Brazil, this requirement would go against Pix’s core vision while also challenging the model of publicly owned, regulator-led systems that several countries are considering. We expect Brazilians to continue to defend the Pix and its main purpose: supporting financial inclusion for Brazilians and providing them with the tools they need to manage their finances.  

Additionally, if President Donald Trump moves forward with imposing 50% tariffs on all products coming from Brazil starting on 1 August 2025, the US could face several difficulties with its imports. For example, the US has been the primary destination for coffee from Brazil, accounting for 16.7% of all exports. According to four trade sources cited by Reuters, US coffee roasters would not be able to pay 50% more, and Brazilians could not decrease prices at an affordable level, leading to roasters having to source their beans elsewhere. In this case, Brazil would divert cargoes to Europe and Asia. And that’s just part of it.

Similarly to other moves made by President Donald Trump, we’ll just have to wait and see how this unfolds. If this topic interests you, save this article to your personal space and stay updated with the latest developments.

About Iulia Mușat

Iulia is a Junior News Editor at The Paypers, predominantly focusing on fraud prevention, financial inclusion, and online payments. With an interest in discovering the latest trends in financial security and payment solutions, Iulia is eager to bring insightful news that keeps readers updated with the current advancements in the financial landscape.