Payment system interoperability — that is, the ability of different networks, financial institutions, and technology platforms to communicate and exchange data seamlessly, allowing money to flow between them without friction for the end user — has become a decisive factor for success in a global financial landscape reshaped by the instant payments revolution.
Solutions such as Pix (Brazil), FedNow (United States), and SEPA Instant (European Union) have established themselves as indispensable tools for consumers and businesses in their respective markets.
However, this rapid progress has created a paradox that is hard to ignore: by strengthening their local systems, countries have ended up building closed ecosystems, each with its own standards, specific rules, and technical barriers.
While this evolution has resulted in robust local payment ecosystems, the next major step for global commerce lies in connecting these endpoints, overcoming fragmentation to enable international scale.
For companies in sectors such as e-commerce, SaaS, travel, and gaming, this lack of interoperability poses a very real challenge when integrating local payment methods into global platforms.
This is where local expertise becomes a critical differentiator.
Read on to understand why payment system interoperability is one of the biggest obstacles to cross-border commerce — and how to overcome it.
What Is Payment System Interoperability?
Payment system interoperability refers to the ability of different financial platforms, networks, and technologies to communicate with one another in a seamless and secure way, even when they operate under different rules, currencies, or jurisdictions.
In practical terms, it means allowing a payment initiated in one system to be completed in another, without the end user ever noticing the friction or complexity that makes the transaction possible.
This interoperability can take place across three distinct layers:
- Technical: related to compatibility between communication standards, such as API protocols, data formats (like ISO 20022), and the underlying technology infrastructure.
- Business: involves agreements between institutions, settlement models, and the fees applied to transactions across different countries or payment networks.
- Regulatory: refers to compliance with local and international regulations, including compliance frameworks, foreign exchange rules, data protection laws (such as GDPR and Brazil’s LGPD), and market-specific requirements.
When these three layers operate in harmony, interoperability becomes possible. However, this level of alignment is still rare in the global payments landscape.
The Current Landscape: Why Connecting Local Payment Systems Requires Expertise
Despite the global expansion of instant payments, these systems were designed primarily with their domestic markets in mind.
Each country developed its own solution based on local needs, specific regulatory frameworks, and proprietary infrastructure, resulting in a natural fragmentation of the global payments landscape.
From a technical perspective, standards vary significantly. While some countries have adopted ISO 20022, others still rely on legacy structures or proprietary APIs, making communication between different networks far more complex.
On the regulatory front, the differences are even more pronounced. Foreign exchange rules, compliance requirements, data protection laws, and anti–money laundering regulations vary widely across regions, requiring tailored adaptations for each cross-border transaction.
Business models are also far from standardized. Settlement times, fee structures, liability allocation, and refund rules can differ substantially from one system or market to another.
Taken together, these barriers make native interoperability between systems like Pix, FedNow, or UPI unfeasible — creating the need for specialized solutions to bridge these gaps.
Pix as a Case Study: From Local Success to Global Connectivity
Since its launch by the Central Bank of Brazil, Pix has transformed the Brazilian financial system.
With mass adoption by individuals as both a transfer and payment method, Pix has surpassed TED transfers, boletos (Brazilian bank slip), and even cash in many use cases.
This widespread adoption quickly revealed a clear opportunity: connecting this highly efficient system to the rest of the world and overcoming its initial operational isolation.
While Pix is efficient, secure, and extremely effective within Brazil, it was designed as a domestic infrastructure.
For a global company operating from the United States, Europe, or Asia, it is not possible to connect directly to Pix. Doing so would require full compliance with Brazilian regulations, contractual relationships with local financial institutions, and highly specific technical adaptations.
This reality creates the need for a local partner with existing Pix connectivity and deep expertise in market requirements — such as PagBrasil.
PagBrasil not only connects companies to Brazil’s payment ecosystem but also pushes the boundaries of Pix to enable true interoperability. This is exemplified by our proprietary solutions, International Pix (Pix Internacional) and Pix Roaming.
International Pix allows Brazilians to use Pix for purchases at physical merchants abroad, with real-time currency conversion. Pix Roaming solves the reverse flow, enabling foreign tourists to pay with Pix in Brazil using the financial apps from their home countries. Together, these technologies transform Pix from a domestic payment tool into a global communication protocol.
Why Efficient Integration Is Critical for Global E-commerce
For global companies operating across multiple markets, the lack of interoperability between payment systems is a tangible barrier to scalability, customer experience, and financial efficiency.
Below, we explore the key impacts of this bottleneck.
Higher Operational Costs and Increased Integration Complexity
Each country requires its own set of contracts, separate API integrations, and adaptations to local regulations.
This significantly increases both the time and cost required to enter new markets, reducing overall operational agility.
In addition, maintaining multiple integrations in parallel creates ongoing technical and compliance overhead.
Negative Impact on the Customer Experience (UX)
When a company’s global payment infrastructure fails to offer local methods, such as Pix in Brazil, customers encounter friction at checkout.
This directly impacts conversion rates, particularly in emerging markets where instant payment methods are strongly preferred.
Challenges in Financial Management and Fund Settlement
Operating across multiple currencies, foreign exchange rules, and settlement timelines makes financial management far more complex.
Businesses must contend with delayed payouts, manual reconciliation processes, and currency fluctuations that undermine revenue predictability.
How Does PagBrasil Solve the Complexity of Payments in Brazil for Global Businesses?
In a landscape defined by fragmentation and regulatory barriers, PagBrasil acts as the bridge that connects global companies to Brazil’s payment ecosystem.
Through our Intermediation Model, we take full responsibility for local operations — from Pix integration and tax compliance to settlement in Brazilian reais and ongoing regulatory support.
In practice, this means only a single API integration is needed.
From there, we can enable all essential payment methods in Brazil — such as Pix, domestic credit cards, and boleto bancário — without the company having to establish contracts with local banks or manage tax and foreign exchange obligations directly.
PagBrasil also handles payout management in BRL, giving international partners full visibility and control over their revenues in the country.
This model dramatically reduces time to market, eliminates operational complexity, and ensures compliance with Brazilian regulations, all without compromising global scalability.
Interoperability Is the Future — But Local Expertise Solves the Present
The fragmentation of payment systems around the world is an increasingly significant challenge for global companies looking to scale efficiently in strategic markets.
While full interoperability between networks such as Pix, FedNow, and SEPA Instant remains a work in progress, today’s reality calls for practical, viable solutions.
To operate successfully in Brazil — one of the most dynamic and complex markets in the world — it is essential to work with a partner that understands local regulation, already has infrastructure integrated with national payment methods, and provides ongoing operational support.
Full interoperability across global payment networks may be the long-term goal, but PagBrasil is already moving in that direction. By mastering the technology that enables Brazilians to shop abroad via International Pix and foreign consumers to pay in Brazil through Pix Roaming, we have established ourselves as the definitive bridge for cross-border commerce. Leveraging this expertise allows businesses to overcome today’s technical and regulatory barriers, ensuring they are ready to scale globally — now.
Don’t let the complexity of Brazilian payments slow down your global expansion. Speak with a PagBrasil specialist and discover how our solutions can connect your business to Brazil.
