As Pix gears up to introduce a new recurring payments service that enables consumers across Brazil to pay for products and services like subscriptions, bills and gym memberships, international companies are also beginning to ready themselves for increased market competitiveness.
The payment system provider revealed that it will launch Automatic Pix (or ‘Pix Automatico’) in April 2024 and will enable recurring payments automatically – without the need for any level of authentication from the user.
Automatic Pix will be free for the individual paying for goods. The service will also enable a series of features to manage recurring payments, including setting a maximum value of the instalment amount to be debited and being able to change or cancel at any time. Users will also be able to approve recurring payments by reading QR codes or via Pix ‘Copy and Paste’.
Unlike automatic debit, which requires bilateral agreements with multiple financial institutions, generating a high cost and operational complexity that limits it to being offered by large companies, with the automatic Pix, the user can opt for recurring payment when contracting day-to-day services. Users will only need to enter their bank details when they join to receive a notification in the bank’s app and confirm their recurring payment method.
Fernanda Zago, CEO of cross-border and high-volume payments fintech WEpayments, discussed the impact the service could have in Brazil when implemented.
Zago said: “The recurring Pix will be an affordable difference for companies, including international companies, which will be able to expand the offer of services to Brazilians, generating more competitiveness in the market. It will also bring even more ease in the financial management of Brazilian consumers, who will be able to use the new modality in different ways in their daily lives.”
Pix plans for 2024
The new Pix project has planned several stages before its launch:
- September 2023: A rulebook and manual publication
- October 2023: Begin developing the system for the new payment modality
- February 2024: Aim to complete the system development by this time
- March 2024: Perform testing of the system
- April 2024: Planned official launch
The Brazilian Central Bank also revealed that the service will become available for all businesses, regardless of segment or size. The likes of card operators, schools, gyms, and utility providers will all be able to access and use Pix Automatico.
Currently, Pix has revealed growth far exceeding 300 per cent since June 2021 and has already surpassed payments via credit card or bank slip; according to the Central Bank.
Pix Automatico will enable recurring payments automatically, with prior authorization from the paying user. The development of the product relies on three pillars, namely safety, practicality for users (payers and recipients), and flexibility. This three-pillar approach aims to ensure the system’s compatibility with multiple business models, whether we’re talking about digital or physical establishments.