Brazil to Launch Recurring Payments Feature for Pix on June 16

Brazil’s central bank launching Pix Automático, a recurring payments feature, on June 16. This aims to streamline payments for small businesses and those without credit cards, potentially increasing eCommerce revenue significantly.

Brazil’s central bank is gearing up to roll out a much-anticipated recurring payments feature for its popular instant payment system, Pix, on June 16. Dubbed Pix Automático, this functionality was originally set to launch in October 2024 but has been expedited. According to reports from Reuters on June 4, central bank representatives discussed the new feature during an event in Sao Paolo. They emphasized that this would allow users to authorize recurring payments with just one consent, streamlining the payment process significantly.

Officials at the central bank indicated that Pix Automático has the potential to shake up traditional bill-paying methods, including paper checks and the automatic debit services commonly used by banks. This could particularly benefit small businesses, making it easier for them to get involved with automatic payments. Additionally, the feature aims to assist around 60 million Brazilians without a credit card, granting them access to subscription-based services that they have previously struggled to utilize.

Back in July 2024, Brazil’s central bank had announced a delay in the launch of the recurring payments feature until June 16, although the exact reasons for this postponement were not clarified. Pix itself has been a success since its launch at the end of 2020, largely due to its user-friendly nature. Insights from the PYMNTS Intelligence and Kushki collaboration noted that Pix became popular quickly among users, who find the instant payments platform straightforward.

Now, Brazilians can utilize Pix while traveling abroad in neighboring countries, facilitating payments for services like dining and accommodation. There are also indications that Pix may connect with other global instant payment systems, enhancing its functionality and reach.

Earlier this year, it was reported that EBANX, a FinTech company and one of the first adopters of Pix Automático, projected that this new recurring payments feature could channel around $30 billion in eCommerce transactions to Pix within a couple of years. Most of this growth is anticipated to stem from consumers who currently do not use credit cards, highlighting how Pix Automático could reshape the market landscape.

Eduardo de Abreu, Vice President of Product at EBANX, shared insights indicating that Pix Automático could revolutionize the method businesses use for managing recurring payments, especially for global SaaS companies operating within Brazil. He noted that around 95% of new customers of EBANX partners in Brazil opt to pay for their initial purchase using Pix, showing a strong preference for this payment method. This new functionality is expected to unlock significant market potential within the recurring payments segment in the country, according to de Abreu.

In summary, Brazil’s central bank is poised to launch Pix Automático, a recurring payments feature for its Pix platform, on June 16—earlier than previously scheduled. This innovative addition aims to transform financial transactions for small businesses and the unbanked population, potentially drawing substantial eCommerce revenue. As Pix gains traction both locally and internationally, its role in daily transactions and subscription services is expected to expand remarkably.

Original Source: www.pymnts.com