While the
Brazil's Pix real-time network, which launched in 2020, jumped from less than 3 billion transactions to more than 11 billion in 2023, according to
Brazil's fast pickup of real-time payments isn't the only way the country is ahead of the pack in payments innovation. Its central bank digital currency is also progressing rapidly. As such, Brazil has become a popular place for
"International cross-border real-time payments are very much on the agenda," said Ron Van Wezel, a strategic advisor at Datos Insights. "Business needs to make faster, less expensive cross-border payments in an increasingly globalizing world."
For example, Pix is a major part of Fiserv's strategy in Brazil. In February, the bank technology company agreed to acquire Sled, a Brazilian fintech. Fiserv did not provide comment for this article, but in the company's most recent
Fiserv's deal came shortly after Visa closed a $1 billion deal in January to acquire
"They were expanding outside of Latin America before and Pismo will expand along with Visa," said Christopher Suh, Visa's executive vice president and chief financial officer, according to a
Brazilian fintech EBANX offers local payment methods from 28 countries across Latin America and Africa. It recently entered in India, connecting the UPI rail and other platforms in the same way they do it with Pix in Brazil. The integration of EBANX with UPI and Pix will enable EBANX's merchants to accept UPI payments in India and Pix payments in Brazil, said Sebastian Fantini, product director at EBANX.
"Payments are an important step in the purchasing process, capable of defining whether a purchase will create a customer. If we have an international real-time payments method, we would bring that convenience to a completely different level," said Fantini. "Global players can right now adapt their offerings to meet local preferences, invest in cutting-edge technologies, and establish strategic partnerships with local institutions to build trust and gain market share."
The mature real-time payments market in Brazil is key, according to Fantini. The Central Bank of Brazil, which did not provide comment for this article, reports that four out of five adults in Brazil use Pix daily. And in 2023, Pix surpassed
EBanx's internal data shows that 95% of a merchant's new customers make purchases with Pix. "This result is even more significant considering that Pix is only 3 years old," Fantini said, adding that in 2021, just 16% of a merchant's new customers used Pix.
Brazil's real-time payments growth is far ahead of the U.S. Real-time transactions in the U.S. are on pace to grow from 1.4 billion 2011 to 11.4 billion in 2026, according to
"The success of Pix and credit cards in Brazil, and even the penetration of other payment methods like e-wallets and [cash], highlight the importance of providing options, flexibility, convenience and security in payment solutions," Fantini said.
Countries looking to implement real-time payments are looking at the success of Brazil and India, according to Peter Ryan, a senior director and analyst at Gartner. For example, the Central Bank of Colombia is looking to introduce a single payments interface as the Colombian domestic real-time payment scheme and is using Pix as an inspiration, Ryan said.
"The offer of cheaper payments that improve company cash flow is a strong one and as central banks roll out real-time payments there will be increasing opportunities for companies such as EBanx," Ryan said.
Pix payments are free for consumers, and the cost for merchants and businesses is 0.33% of the transaction amount, versus 1.13% for debit cards and 2.34% for credit cards. "This cost has driven widespread adoption," Ryan said, adding that the U.K. has long had faster payments and the Eurozone is mandating bank support for instant euro payments in the next year.
"These benefits mean real-time payments are becoming a global standard," he said. (The U.S. does
The Clearing House has completed a proof of concept for instant cross-border payments between the United States and Europe, and TCH has been in discussions with numerous other jurisdictions regarding instant cross-border payments capabilities, Rusiru Gunasena, senior vice president and RTP product manager at TCH, said in an email.
TCH and EBA Clearing completed the proof of concept, called IXB, for the RTP instant settlement system in the United States and the RT1 instant settlement system in the Eurozone.
"The proof of concept demonstrated that the technology and process to achieve instant cross-border is sound," Gunasena said. "The next step is to harmonize rules across jurisdictions, such as AML, KYC and OFAC (Office of Foreign Assets Control) expectations, to allow banks to process instant transactions across borders."
FedNow, RTP and Pix use the ISO 20022 messaging standard, setting the groundwork for international cross-border payments. And central banks are extending the operating hours of their settlement schemes, thereby enabling real-time settlement of domestic payments as well as cross-border ones, Ryan said. "This is leading to a world where real-time bank payments will be normal," he said.
