By Brazil Stock Guide – Brazil’s central bank is studying connections between Pix and payment networks abroad, a step that could cut transaction fees, accelerate cross-border remittances and allow international purchases to be settled in local currencies within seconds.
The plans were detailed in the Pix Management Report for 2023-2025, released Monday (Aug. 10). The document also outlines offline contactless payments, credit backed by future Pix revenue and tighter safeguards against fraud.
“Both bilateral interconnections and participation in multilateral hubs are under discussion,” the central bank said. “These interconnections would allow international remittances and purchase transactions, with funds made available in local currency within a few seconds.”
The monetary authority is monitoring international Pix services already being implemented by Brazilian and foreign companies. Those projects could help determine how the instant-payment system will interact with networks operated in other countries.
Cross-border payments
The initiative considers two main models. Bilateral connections would link Pix directly to a payment system in another country, while multilateral hubs could provide access to several markets through a shared infrastructure.
In both cases, the objective is to allow users to send money or pay for purchases abroad without waiting for the processing times associated with conventional international transfers.
The central bank expects faster settlement and lower fees to broaden access to cross-border transactions, although the report does not establish a timetable for implementing the connections.
Offline contactless transactions
The regulator is also examining technology that would allow contactless Pix payments without an internet connection.
The feature could expand the use of the system in places with unstable connectivity or in situations where users are temporarily offline. The report does not specify how transaction validation and security would work under the proposed model.
Another planned development is the broader use of Pix Automático. The service is designed for recurring charges and could replace traditional direct debit arrangements in some transactions.
Future revenue as loan collateral
The central bank is considering integrating Pix more closely with the credit market by allowing businesses to use expected payment flows as collateral for financing.
“The expected result is that the solution may contribute to improving the quality of collateral and reducing the cost of credit, especially for companies that make extensive use of Pix,” the document said.
The proposal could be relevant to companies that receive a large share of their sales through instant payments. Future Pix revenue would provide lenders with an additional guarantee when assessing financing applications.
The report does not detail which types of loans would qualify or how institutions would calculate the value of the expected payment flows.
Abusive messages draw scrutiny
The central bank has also identified the misuse of Pix transaction messages to send insults, threats and intimidation. The abusive content is frequently attached to transfers involving negligible amounts.
The message field was originally created to record information about a transaction. Its use as a channel for harassment prompted the regulator to establish a working group to examine possible changes.
“Based on the conclusions of this work, the central bank will assess and introduce, if deemed necessary, appropriate regulatory measures to curb the misuse of the message field,” the document said.
The report does not indicate whether the field could be restricted, redesigned or removed in certain circumstances.
Fraud risk calculated in real time
The monetary authority outlined eight measures to strengthen Pix security. One proposal would establish minimum objective criteria for identifying transactions suspected of fraud.
Financial institutions currently apply their own policies when deciding which operations require additional scrutiny. According to the central bank, that decentralized model produces inconsistent responses and may allow risky payments to proceed.
“Currently, these criteria are determined by the policies of each institution,” the central bank said. “This creates inconsistent behavior and allows several transactions that should receive differentiated treatment, such as high-value transactions outside business hours, to be authorized without more careful assessment.”
The regulator also plans to develop a fraud probability indicator calculated in real time for every Pix transaction. Banks and payment institutions would be able to add the score to their own security systems.
“It will be built using a machine-learning model based on artificial intelligence and should be made available to participating institutions to feed their antifraud systems,” the report said.
Standardized alerts and precautionary blocks
Fraud warnings displayed to customers would also be standardized. Some institutions already issue alerts when a transaction shows signs of risk, but the format and criteria differ across the financial system.
The central bank intends to improve the flow of information used for precautionary blocks of suspicious transfers. The proposed structure would automate communication between the institutions involved in a transaction.
“The creation of a direct and automated flow between institutions will allow information to be exchanged smoothly and promptly, facilitating transaction assessments and increasing the accuracy of fraud detection,” the central bank said.
The security agenda also proposes expanding precautionary measures against institutions that put the payment system at risk. Possible sanctions include restrictions on the registration of new Pix keys.
Pix becomes part of US-Brazil dispute
The international expansion plans come as Pix faces scrutiny from the US government. The payment system was cited among the reasons for a recent 25% tariff imposed on some Brazilian products.
The White House has described Pix as an “unfair practice” in Brazil’s financial market. The Brazilian government rejects that characterization.
Experts consulted by Agência Brasil said the pressure from the Donald Trump administration reflects the challenge Pix poses to Washington’s influence over Brazil’s electronic payment infrastructure.
By developing payment structures outside US control, Brazil reduces its exposure to financial pressure from Washington, including the use of sanctions to influence policies or diplomatic positions, according to those assessments.
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