Brazil’s central bank is launching Pix Automático, enabling recurring payments via Pix on June 16. Initially set for an October 2024 release, this feature will streamline payments significantly, especially for small businesses and non-credit card holders. Predictions suggest it could generate $30 billion in eCommerce transactions within two years.
Brazil’s central bank has announced the upcoming launch of its long-anticipated recurring payments feature for Pix, known as Pix Automático, which is set for June 16. Initially scheduled for release in October 2024, this feature has now been expedited, allowing users to authorize recurring payments with a single consent. This information was reported on June 4, following statements made by central bank officials at an event in Sao Paulo.
During the event, officials discussed the impact of Pix Automático, predicting that it will significantly change the landscape for traditional billing methods and existing automatic debit services from banks. This new development aims to simplify the payment process for small businesses and will also provide access to subscription services for around 60 million Brazilians who lack credit cards. Interestingly, the central bank had signaled a delay in July 2024 regarding the launch but has now moved forward without providing specific reasons for that initial postponement.
Launched at the end of 2020, Pix quickly gained traction due to its user-friendly platform and instantaneous nature. A joint report by PYMNTS Intelligence and Kushki titled “Digitizing Payments in Latin America Playbook” highlights how this service has transformed payments in Brazil, even allowing users to pay for restaurants and hotels in countries nearby while traveling.
Back in January, the fintech company EBANX—one of the early adopters of Pix Automático—projected that the new recurring payments functionality could generate approximately $30 billion in eCommerce transactions through Pix within just two years. The majority of this growth is expected to come from users without credit cards, which could unleash a wave of new digital transactions.
Eduardo de Abreu, the Vice President of Product at EBANX, shared insights on how the feature might revolutionize recurring payments particularly for global SaaS companies operating in Brazil. Ninety-five percent of new customers for EBANX partners typically make their first purchase using Pix. De Abreu firmly believes that this new payment method has the potential to tap into previously unlocked market opportunities related to recurring payments in Brazil.
To summarize, Brazil’s central bank is launching Pix Automático on June 16, enhancing its Pix payment system with recurring payments. This feature aims to streamline not only consumer payments but also aid small businesses, thereby expanding service access for those without credit cards. The anticipated boost to eCommerce could be substantial, with projections reaching $30 billion in two years, fundamentally reshaping payment practices in Brazil.
Original Source: www.pymnts.com
