South America – The Pix Effect and Local Payment Preference

Overview Latin America posted 11% payments revenue growth in 2025, led by Brazil's Pix. Real-time rails and alternative payment methods (APMs) are now mainstream across the region. Cash is declining steadily, yet still dominant in lower-income corridors. Key Challenges • Local APM fragmentation (Pix, SPEI, and a long tail of country-specific schemes). • High FX volatility and persistent US-dollar dependence. • Regulatory divergence between markets. • Conversion drop-off at checkout, especially from external redirects. Breakdown by Significant Financial Centres São Paulo A Pix powerhouse — but fiscal volatility and political scandals continue to weigh on investor confidence. Santiago Chile ranks higher than its peers in the GFCI thanks to regulatory stability and pension-fund depth, offering a more predictable environment for global players. Buenos Aires & Bogotá High inflation and capital controls continue to complicate cross-border activity in both markets, despite strong domestic demand for digital payments. Case Example Brazil's Pix internationalisation push is now expanding across LatAm, demonstrating how a single domestic rail can shape regional standards once it reaches escape velocity. Implications for Global Payments Firms Local APM acceptance is mandatory for healthy conversion rates. Embedded finance and QR ecosystems offer real scale for firms willing to integrate deeply with local rails rather than route around them.