UnionPay to Be Linked to Brazil’s Pix - What Does this Show Us About the Future of Cross-border Payments?

August 2026

Fintech & Payments

Michael Greenwood

Principal Analyst

On the 5th August, a pilot programme was announced for the linking of Chinese payment apps to Brazil’s Pix system, to be facilitated by UnionPay. The pilot will enable users on the UnionPay app, as well as participating Chinese banks, to make payments at merchants that accept Pix by scanning a QR code at checkout. If the pilot is successful, it is expected that this will be rolled out to all digital wallets on UnionPay’s network. This is the first time Pix has partnered with a foreign payment network to enable transactions within Brazil.

On the surface, this is a move to reinforce the growth of Chinese tourism in Brazil. In 2025, Brazil saw a 34% increase in the number of Chinese tourists; driven by Brazil’s targeting of the Asian market to promote tourism. This is evidenced by the Brazilian International Tourism Promotion Agency (Embratur) designating 2026 the ‘Brazil-China Year of Culture’. 

However, the fact that this agreement comes at a time of increasing cooperation between the Central Bank of Brazil (BCB) and the People’s Bank of China (PBOC), and shortly after the US has issued tariffs, is likely to have played an important role in decision-making. In May 2025, BCB and PBOC signed a memorandum on financial cooperation, which covers investment conditions, financial infrastructure, local currencies, and payments. Neither central bank has published the agreement - meaning we cannot be sure of the details, or if this linking of Pix and UnionPay is a part of that agreement or has been arrived at separately. The memorandum came at the same time as the two countries renewing a currency swap line worth CN¥190 billion ($27 billion) for five years. 

The pilot programme has also come shortly after the US Trade Representative to Brazil concluded a year-long investigation into the alleged preferential treatment of Pix by the Brazilian regulator over US card networks operating in the country. The Trade Representative points to the fact that BCB is responsible for both the running of Pix and the regulation of the payments industry as proof of an unfair system. This is contested by the Brazilian central bank. It points to the rapid growth of domestic card networks as evidence of card networks not being unfairly disadvantaged. Despite this, in July 2026, the US Trade Representative imposed a 25% tariff on Brazilian goods. This coincides with a second, unrelated, US investigation into goods produced by forced labour, which has placed a 12.5% tariff on 60 countries, including Brazil. Both these tariffs stack on top of unilateral tariffs imposed on certain goods; bringing the tariff rates on the hardest hit sectors of the Brazilian economy to 50%.

The linking of UnionPay and Pix, along with the associated dealings of the respective central banks, brings into focus two key trends in the global payment space: international cooperation and payment sovereignty. The complexity of these trends arises from their seemingly contradictory aims. Many national governments and payment authorities are seeking to integrate national payment systems with neighbours, and key trade partners, to streamline the process of travelling and trading between the countries in question. The linking of payment rails is often accompanied by trade agreements to further facilitate commerce between these participating countries. Prime examples of such cooperation are the linking of Malaysia’s DuitNow with Thailand’s PromptPay, and Indonesia’s QRIS with Singapore’s FAST payment system. These agreements not only promote trade, but also support the adoption of domestic payment infrastructure. This reduces the reliance of markets on US-based global card networks and payment infrastructure; explaining how this approach also supports payment sovereignty. 

The importance of payment sovereignty was made clear to many governments following the withdrawal of US and European payment infrastructure from Russia in 2022, after its invasion of Ukraine. For governments that are not closely aligned with the US, the dominance of US card networks in their payment landscape would present a vulnerability, should they find themselves at odds with the US. Even the EU is trying to encourage its population away from American card networks, and toward European payment infrastructure, such as Wero. 

Through Pix, Brazil has largely achieved this payment autonomy. Consumer payments are dominated by Pix, and the Brazilian card space appears to present healthy domestic competition for the global American brands. It is this payment sovereignty that BCB is seeking to maintain by choosing not to change its regulatory landscape in the face of tariff pressure. In this context, the linking of UnionPay to Pix has several results. Firstly, it reinforces the primacy of Pix for merchants, as it makes it the means by which it accepts international travellers’ payments. It also sends a clear message that Brazil is willing to pursue closer economic ties with China. 

These trends not only shape central bank policy. They also have a significant impact on payment service providers (PSPs) and other fintechs. One area that is particularly impacted by the rise in bilateral agreements linking national payment infrastructure is PSPs that have specialised in cross-border payment. Traditionally, national payments infrastructure has been very fragmented; providing good coverage for domestic payments, but leaving cross-border payments complicated and expensive. This has allowed an industry of cross-border specialists to emerge, such as Wise, to tackle these issues for individuals and business.

What we foresee is the diversion of two different approaches to cross-border payments. In markets such as the US and UK, private PSPs will develop cross-border payment infrastructure linking traditional banks using instant payment rails and stablecoins. Meanwhile, in markets such as China and ASEAN, cross-border payments will primarily be carried out over interlinked national infrastructure managed by central banks or government-backed organisations.