UnionPay to Link Chinese Payment Apps to Brazil's Pix Amid US Tariff Dispute
UnionPay International of China is set to initiate a pilot program aimed at linking Chinese payment applications with Brazil's instant payment system, Pix, which has recently sparked a trade conflict with the US. This program would enable Chinese travelers to make payments by scanning a merchant's QR code through the UnionPay app or affiliated Chinese banking apps. According to Chinese state media, access will eventually be expanded to include other digital wallets within UnionPay's global infrastructure. This development follows the recent imposition of tariffs by Washington on Brazil concerning the Pix system, which US card companies argue is anti-competitive due to the central bank's dual role. Since its launch in November 2020, Pix has become the primary payment method for approximately 15 million merchants in Brazil, greatly diminishing cash and check usage. The central banks involved have not commented on the pilot, which could enhance the international presence of the Brazilian system and heighten trade tensions with the US.
Key facts
- UnionPay International plans to connect Chinese payment apps to Pix, Brazil's payment system.
- The pilot would allow Chinese tourists to pay by scanning a merchant's code using the UnionPay app or linked Chinese bank apps.
- Chinese state media reported that access would later extend to other digital wallets in UnionPay's global network.
- Pix was launched by Brazil's central bank in November 2020.
- Pix reaches about 15 million merchants, from department stores to street vendors.
- Pix has pushed cash and cheques to the margins of the Brazilian economy.
- The central bank regulates Brazil's payment industry and runs Pix, a dual role that American card companies say tilted the market against them.
- The US imposed tariffs on Brazil over the Pix system.
Entities
Institutions
- UnionPay International
- Brazil's central bank
- US card companies
Locations
- China
- Brazil
- Washington