And from Brazil: Another Experience in Electronic Payments

Mohamed Abdel Rahim Jawish
Ambassador Ahmed Al-Tijani Sawar, Sudan’s ambassador to Brazil, contacted me in response to my article “Mobile Payments… Now… Now.” I was genuinely pleased to see that our ambassador, from the western hemisphere, is closely following what is being written in Sudan and is contributing to the debate by sharing Brazil’s experience to enrich the discussion and expand the range of options.
Brazil, as reflected in Ambassador Sawar’s account, adopts a philosophy quite distinct from other global experiences. It appears that the Central Bank itself manages the electronic payment system, as though it regarded the matter as a natural extension of its role in issuing currency and regulating the banking system. Brazil continues to surprise us—not only in football, but beyond it.
Ambassador Sawar wrote:
The Pix Instant Payment System in Brazil
First: General Introduction
Pix is considered one of the most significant structural reforms in Brazil’s financial sector over the past decade. It represents a national instant payment infrastructure launched and operated by the Central Bank of Brazil (Banco Central do Brasil) in November 2020. The system aims to modernise the payments landscape, reduce reliance on cash and traditional transfers, and enhance financial inclusion and economic transparency.
Second: Institutional and Regulatory Framework
Establishing and Supervising Authority: The Central Bank of Brazil is the developer, owner, and operator of the system.
Legal Nature: Pix forms part of Brazil’s national payments infrastructure and is governed by Central Bank regulations.
Mandatory Participation: Financial institutions that exceed a specified threshold of active accounts are required to participate, while smaller institutions and fintech companies may join, subject to defined regulatory conditions.
Oversight and Compliance: Participants are subject to strict requirements concerning cybersecurity, anti-money laundering measures, and data protection.
Third: Unified National Character
Pix is not a service belonging to a single bank. Rather, it is:
A unified national system connecting all licensed banks and financial institutions within a single network.
Fully interoperable across banks and payment providers.
Operable 24 hours a day, seven days a week, including public holidays.
This unification has enhanced market efficiency and reduced operational costs compared with traditional payment methods.
Fourth: Economic and Strategic Significance
Enhancing Financial Inclusion:
The system has integrated broad segments of the population—particularly low-income groups and small business owners—into the formal banking system.
Reducing Transaction Costs:
Transfer and payment fees are significantly lower than those of traditional bank transfers and credit cards.
Supporting the Digital Economy:
Pix has become the most widely used payment method in e-commerce and daily transactions, accelerating Brazil’s digital transformation.
Strengthening Transparency:
The system reduces the size of the informal economy by digitally recording transactions in real time.
Fifth: International Dimensions
Pix is viewed globally as a successful model of instant payment systems.
Several countries are studying the possibility of drawing lessons from Brazil’s experience or pursuing technical cooperation with the Central Bank of Brazil.
The system enhances Brazil’s standing as a regional centre for financial innovation in Latin America.
Sixth: Challenges and Future Prospects
Cybersecurity: Continued development of fraud-prevention mechanisms remains essential.
International Integration: Future potential for linkage with instant payment systems in other countries.
Ongoing Innovation: Introduction of new services, such as deferred payments or integration with central bank digital currencies.
Conclusion
Pix is regarded as a strategic national project of the Brazilian state, created and managed by the Central Bank of Brazil as a unified national instant payment system encompassing all licensed banks and financial institutions. It has brought about a profound transformation in Brazil’s payment environment, delivering clear positive impacts on economic efficiency, financial inclusion, and digital innovation—making it one of the most prominent examples of financial reform in emerging economies.

Shortlink: https://sudanhorizon.com/?p=11404