🎉 UnionPay will connect Chinese banking apps🇨🇳 with Brazil's instant payment system Pix 🇧🇷

🎉 UnionPay will connect Chinese banking apps🇨🇳 with Brazil's instant payment system Pix 🇧🇷
Given that #Pix has become a significant payment system in the region, the integration will allow Chinese companies to strengthen their position in the Latin American payments market. Brazil will also benefit, as the initiative will expand the international payment options available to its users.

🟰 PixLink pilot program: customers of banks integrated with UnionPay will be able to scan merchant QR codes in Brazil and pay for purchases directly from their accounts in China. Until now, Pix had not been directly connected to any foreign payment system.

🟰 Competition in the payments market: the pressure exerted by the United States🇺🇸 on Brazil has also influenced the broader landscape. The United States accused Pix of undermining the U.S. market. Payment providers such as Mastercard, WhatsApp Pay and Visa have raised concerns related to competition. Following the position taken by Brazil's Central Bank, the United States imposed a 25% tariff on certain Brazilian products, including steel, aluminum, machinery, footwear and wood products.

🟰 Bilateral ties: China's presence in Brazil extends across several areas. In addition to the growing presence of Chinese companies in the country, a bilateral agreement signed by the two countries' central banks in January 2023 is particularly relevant. Under the agreement, China committed to appointing a clearing bank for yuan-denominated transactions in Brazil. In May last year, during President Luiz Inácio Lula da Silva's visit to Beijing, the two countries extended a 190 billion yuan currency swap line (USD 27 billion) for another five years. Meanwhile, UnionPay cards have been operating in various international markets for several decades.

🟰 Returning to PixLink: neither UnionPay nor the Central Bank of Brazil has yet announced the Brazilian partner for the project, and no launch date has been set. Subsequently, access may be extended to other digital wallets within UnionPay's global network.

The initiative represents a new step in the integration of China's and Brazil's payment systems and could further strengthen financial ties between the two countries.

#news #Brazil #China #geopolitics #USA

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