Examining the Similarities and Differences Between Brazil's Pix and India's UPI Payment Systems
India's Unified Payments Interface (UPI) and Brazil's Pix are two instant payment systems that have revolutionised digital transactions in their respective countries. However, they differ significantly in cross-border capabilities, adoption rates, and government regulation.
Cross-border Capabilities
UPI, developed and regulated by the National Payments Corporation of India (NPCI), has been actively expanding internationally. It has integrated with international remittance services like Xoom, Western Union, and DeeMoney, making money transfers easier and more cost-effective for the Indian diaspora in various regions. NPCI has signed multiple MoUs, including with Singapore, Malaysia, Thailand, and the Arab Monetary Fund, targeting real-time cross-border multi-currency transactions. India is working to move many expatriates off costly systems like SWIFT onto UPI for remittances.
On the other hand, Pix, managed by Brazil’s central bank, is primarily a domestic system focused on Brazil and does not currently have the same breadth of international integration as UPI. While initiatives to expand its cross-border use are less developed or widely reported, PagBrasil, a payment collection agent for Pix, has partnered with the Banco Central do Brasil (BCB) and other banks to enable payments in several countries, including Uruguay, Argentina, Chile, and the US state of Florida.
Adoption Rates
UPI has rapidly become the backbone of digital payments in India since its 2016 launch, supported by a large number of banks (66 banks integrated for remittances). It is used for a diverse range of transactions, including peer-to-peer and merchant payments, and is expanding abroad through partnerships.
Pix, introduced more recently by Brazil’s central bank, has seen explosive adoption domestically, capturing a large share of the Brazilian payment market, including eating into credit card market share. It has become the default instant payment system, widely used for various transactions.
Government Regulation
Both systems are regulated by their respective central banks or national payments authorities. UPI is developed and regulated by NPCI, an umbrella organization supported by the Indian government and banks, which actively negotiates international partnerships.
Pix is managed directly by Brazil’s central bank, which oversees its broader payment ecosystem. Pix, FedNow (US), and similar systems are examples of digital public infrastructure governed centrally, but differences exist in governance structures and regulatory approaches between countries.
In summary, UPI leads in cross-border payment integration and international remittance facilitation, while Pix is highly successful domestically but less internationally connected as of now. Both systems enjoy strong adoption and are government-regulated but differ in governance specifics and strategic international reach.
| Aspect | India’s UPI | Brazil’s Pix | |-----------------------|---------------------------------------------------------|--------------------------------------------------| | Cross-border use | Expanding via MoUs with multiple countries and remitters; facilitates diaspora remittances globally | Primarily domestic use; limited international expansion reported | | Adoption rate | Very high in India; integrated with many banks; expanding usage abroad | Rapid and widespread domestic adoption; dominant in Brazil | | Government regulation | Regulated by NPCI, supported by Indian government and banks; proactive international agreements | Managed by Brazil’s central bank; strong domestic regulatory framework |
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