Brazil Set to Launch Recurring Payments Feature for Pix on June 16
Brazil’s central bank will launch Pix Automático on June 16, enabling single-consent recurring payments. This feature promises to streamline billing, support small businesses, and improve access for millions without credit cards. Pix has seen explosive growth since its 2020 launch and is projected to drive $30 billion in eCommerce payments in the next two years.
Brazil’s central bank is on the cusp of launching a highly anticipated recurring payments feature for its instant payment system, Pix, set for June 16. Dubbed Pix Automático, this feature will allow users to authorize recurring payments with a single consent — a significant upgrade from the traditional methods and existing automatic debit services, according to Reuters reporting from a recent central bank event in Sao Paulo.
During the Sao Paulo event, officials expressed optimism about how Pix Automático could disrupt conventional paper billing practices while also benefiting small businesses by simplifying automatic debit options. Notably, it aims to assist the approximately 60 million Brazilians lacking credit cards, giving them access to subscription-based services which were previously limited. This initiative reflects a significant move towards the financial inclusion of underserved populations in Brazil.
Initially scheduled to debut in October 2024, the implementation of Pix Automático was postponed. The central bank announced the new June 16 launch date without providing a specific rationale for the earlier delay. Pix, first introduced at the end of 2020, has gained significant traction due to its user-friendly design and ease of operation. Insights from the PYMNTS Intelligence and Kushki collaboration underscore its popularity in Latin American digital transactions.
Moreover, travelers from Brazil can now utilize Pix while abroad, accessing services in countries nearby. Its integration with other global instant payment systems positions it as a growing player in the international finance landscape. Notably, Brazil’s fintech company EBANX, an early adopter of the Pix Automático feature, has forecasted that this functionality could generate $30 billion in eCommerce payments for Pix within two years, a substantial figure indicating massive market potential.
The majority of this anticipated growth is expected to come from consumers who previously could not participate in these markets due to a lack of credit cards. Eduardo de Abreu, Vice President of Product at EBANX, suggests that Pix Automático is likely to transform the management of recurring payments across emerging markets, especially benefiting global software-as-a-service (SaaS) enterprises operating within Brazil. He commented on the significant trend: “Ninety-five percent of new customers of EBANX partners in Brazil pay for their first purchase with Pix, and the new instant payment method will unlock the remaining potential of the recurring market in the country.”
As Brazil moves towards implementing Pix Automático, the changes it promises to bring may not only reshape the financial landscape of Brazil but could also serve as a model for emerging markets globally.
In summary, Brazil is preparing to launch the recurring payments feature, Pix Automático, on June 16. This new feature aims to simplify bill payments and enhance financial inclusion for millions. As the market anticipates substantial growth in eCommerce payments, Pix may significantly influence how recurring payments are processed throughout Brazil and potentially set the stage for similar initiatives in other emerging markets.
Original Source: www.pymnts.com
