Brazil’s central bank will introduce the Pix Automático feature for recurring payments on June 16. Initially expected in 2024, this feature will facilitate one-time consent for ongoing payments. Officials believe it will disrupt traditional billing methods, aid small businesses, and offer credit-free users access to subscription services. The initiative has significant potential for eCommerce growth, targeting users without credit cards.
Brazil is preparing to launch a highly anticipated recurring payments feature for its instant payment system, Pix, on June 16. This feature, known as Pix Automático, was initially scheduled for a 2024 debut but was pushed forward, as reported by Reuters. Users will be able to authorize repeating payments with a single consent, offering both convenience and efficiency in processing payments for services.
Officials at Brazil’s central bank expressed optimism that Pix Automático will significantly disrupt traditional bill-paying methods and compete with automatic debit services currently offered by banks. This feature is marked to particularly benefit small businesses, making it simpler for them to offer automatic deductions. Importantly, it will also allow the 60 million Brazilians without credit cards access to subscription-based services, which previously remained out of their reach.
The concept was originally introduced in July 2024 with a later launch date. However, reasons behind the delay weren’t specified. Pix was initially launched at the end of 2020 and quickly gained traction among the population. The system’s ease of use and instant capabilities have been credited for its widespread acceptance in Brazil, according to a report from PYMNTS Intelligence in collaboration with Kushki.
Brazilians can now use Pix while traveling in neighboring countries, too, to settle payments at restaurants and hotels. Interestingly, there are prospects of linking Pix with other instant payment systems globally, creating a more interconnected payment landscape. Reports from January indicated that FinTech firm EBANX, an early adopter of Pix Automático, predicts this feature could generate $30 billion in eCommerce payments within a two-year period, especially targeting consumers lacking credit cards.
This innovative feature is expected to redefine how businesses manage recurring payments, particularly for SaaS companies operating in Brazil. Eduardo de Abreu, EBANX’s Vice President of Product, noted in an October interview that 95% of new customers of EBANX partners make their first purchase using Pix, indicating a promising future for Pix Automático in unlocking new potential within the country’s recurring payment market.
The launch of Pix Automático in Brazil is poised to revolutionize the payments landscape by simplifying how recurring payments are managed. As a feature that allows a single consent for repeated payments, it removes hurdles predominantly faced by small businesses and consumers without credit cards. With strong market prospects, including predicted eCommerce growth, Pix Automático may just redefine payment systems in Brazil and potentially on a global scale.
Original Source: www.pymnts.com
