The news: Spotify added Pix as a payment option for Premium users in Brazil, according to a company release.
How we got here: Run by Brazil’s central bank, Pix has been a big success since its November 2020 launch.
Why the tie-in makes sense:
Pix can use partnerships and new product features to sustain growth and eat into payment cards’ market share. Tie-ins with Spotify and Banco do Brasil, which enabled Pix payments through WhatsApp, will help do that. And going live in other Latin American countries should also attract more users and volume.
Multinationals beware: Pix and India’s Unified Payments Interface (UPI) are both major domestic payment success stories—and should be a warning to card networks as fee pressure intensifies and domestic networks scale cross-border.
Pix’s market-leading position in Brazil could also temper foreign payment companies’ expansion plans in the market. And don’t be surprised if central banks in other countries in Latin America and Southeast Asia try to replicate Pix and UPI.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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