A global failure in Amazon Web Services (AWS) servers took the Picpay app offline on the morning of Monday, October 20, 2025, affecting millions of users in Brazil. The outage, originating from a data center in Virginia, USA, disrupted financial transactions, causing difficulties in accessing accounts and making payments. The issue, which began in the early hours, also impacted other platforms like Mercado Livre and Mercado Pago. The service was fully restored by noon, according to an official statement.
The DownDetector website recorded over 6.5 million global reports of issues with online services, with Picpay being one of the most affected in Brazil. Small and medium-sized businesses relying on AWS infrastructure also faced disruptions, particularly in e-commerce.
- Affected services: Picpay, Mercado Livre, Mercado Pago, Snapchat, Zoom.
- Main cause: Failure in AWS Lambda service in the US-East-1 region.
- Start time: Around 4 a.m. (Brasília time).
- Estimated resolution: Early afternoon of October 20.
Origin of the outage
The failure originated in an AWS data center in the US-East-1 region, USA, which hosts much of the company’s server infrastructure. The issue affected the Lambda service, critical for running cloud-based code, disrupting apps like Picpay.
Amazon identified the cause at 7 a.m. (Brasília time) and began system recovery, with fixes completed by 9:10 a.m. The outage highlighted the reliance of fintechs and digital platforms on cloud services.
Impacts in Brazil
In Brazil, millions of Picpay users reported issues accessing the app. Transfers, bill payments, and balance checks were disrupted throughout the morning.
The issue also affected platforms like Mercado Livre and Mercado Pago, which experienced slowdowns. DownDetector noted a spike in complaints in Brazil starting at 4 a.m., peaking during the morning.
Small and medium-sized businesses using AWS faced interruptions in their online operations. E-commerce was particularly hit, with delays in sales and order processing.
Company responses
Picpay issued a statement on social media, confirming the outage was linked to an AWS failure. The company stated it was working to restore service quickly.
Amazon Web Services confirmed the Lambda service issue was resolved by 9:10 a.m. Gradual system recovery was completed by early afternoon, according to the companies.
Global scale of the failure
The AWS outage impacted over 500 companies reliant on its infrastructure. Platforms like Snapchat, Roblox, Zoom, and Duolingo also reported issues.
For Picpay, the outage underscored the vulnerability of fintechs using cloud computing services. Experts highlight the need for greater redundancy in critical systems.
User guidance
Picpay advised users to avoid repeated login attempts during the outage. The company recommended checking updates via its official website.
Debate on digital infrastructure
The AWS failure sparked discussions about the centralization of cloud services. The reliance on large data centers, like the US-East-1 region, exposes risks for digital platforms during outages.
Affected companies emphasized the importance of investing in backup systems to minimize impacts. Services were restored without reports of significant financial losses for users.
