We study the labor market effects of instant payment systems in the context of Brazil’s Pix rollout. Using matched employer–employee administrative data, we implement a triple-difference design that exploits pre-treatment variation in mobile penetration across municipalities, the differential exposure to payment frictions of small versus large establishments, and the timing of Pix’s introduction. We find that wages in small establishments rise significantly relative to those in large establishments after Pix, an effect fully explained by cash-intensive sectors such as retail and services. Crucially, wage inequality declines, driven entirely by wage gains among workers in the lower half of the distribution, who are primarily hired by small, cash-intensive firms. Our evidence indicates that Pix’s benefits stem from lower cash-handling costs rather than increased local consumer demand, and the pass-through to wages is amplified by local labor market frictions. A quantitative model of monopsonistic labor markets shows that while Pix's actual rollout significantly increased wage-bill and profits, a counterfactual scenario with uniform adoption--achieved by closing mobile penetration gaps--would multiply these gains by a factor of four.