Brazil’s instant payment platform PIX has become the country’s dominant payment method, processing about $7 trillion in transactions last year, while drawing attention from US trade officials over claims it undermines traditional card networks such as Visa and Mastercard.

Managed by Brazil’s Central Bank since its launch in 2020, PIX allows users with a Brazilian bank account to transfer money in real time using phone numbers, taxpayer IDs or QR codes, usually without fees for individuals, AP reported.

In July, the Office of the US Trade Representative under President Donald Trump opened an investigation into the platform, alleging unfair competition against US card operators. India operates a similar payment system that has not faced the same scrutiny.

PIX is now widely used for daily purchases and larger transactions across Brazil. “The best (payment method) is PIX, the most used,” said Rio de Janeiro beach vendor Luis Felipe de Almeida.

Restaurant owner Marcello Palladini said: “When I want something quickly, I pay with PIX and it comes right away.”

Authorities have also faced rising fraud linked to stolen mobile phones and scam transfers. Digital law specialist Ana Paula Siqueira said: “From the technical and legal standpoint, PIX is safe. But it is not immune to fraud.”

Still, more than 178mn Brazilians have registered for the system.