The rise of national real-time payment systems
How QR code-based payment systems challenge the dominance of Western financial corporations
Quick Look
- National real-time payment systems such as Pix, UPI and PromptPay are increasingly displacing traditional credit cards.
- These QR code-based systems enable cost-effective transactions worldwide without the involvement of US financial groups.
AI-generated summary
Why It Matters
National real-time payment systems enable direct transfers via QR code without the intermediary of international credit card companies.
The latest challenge to the US-dominated world order is a laminated piece of paper. In Rio de Janeiro it hangs next to the price board at juice bars, in Bangkok it dangles from mobile noodle kitchens, and at Bettiah train station in the Indian state of Bihar a beggar wears it on a string around his neck. There is a QR code printed on it. Mobile phone in front of it, tap once and you have transferred money. This takes seconds, costs private individuals nothing, and no American financial or credit card company profits from it.
In Brazil the system is called Pix and has been in operation since 2020. More than 90 percent of adults use it regularly, and it now makes more payments than all credit and debit cards combined. In Thailand, more than 75 million transfers are made every day using PromptPay. In India the system is called UPI, in Indonesia QRIS, in Malaysia DuitNow, in Russia SBP.
Open Questions
- How do international credit card companies react to the market loss?
