Brazil's PIX installment service challenges credit cards

The Brazilian instant‑payment system PIX has introduced a parcelado (installment) option that lets consumers split purchases into multiple payments, directly competing with traditional credit‑card financing. A survey by the CNDL and SPC Brasil found 38% of shoppers have already used or tested PIX Parcelado, citing benefits such as real‑time transactions, lower fees, clearer billing dates and broader merchant acceptance. The feature is built into banking apps, expanding the digitalisation of payments and pressuring credit‑card providers to adapt.

In a separate development, senator Flávio Bolsonaro used a U.S. trade hearing to defend PIX, arguing it promotes financial inclusion for Brazilians and supports U.S. payment‑card firms that operate alongside the system. He criticised President Lula's alleged use of tariffs for political gain and highlighted that PIX‑related issues are part of the Section 301 investigation into Brazil’s digital‑trade practices.