Brazil's Pix system is all set to advance further with the upcoming introduction of recurring payments.
Ready for a game-changer in Brazil's payment sector? Prepare for the introduction of Pix Automatico, a groundbreaking recurring payments feature for the country's wildly popular instant payment system, Pix. Here's what you need to know.
A New Era for Recurring Payments
Pix Automatico is all set to launch this month, transforming the way Brazilians make recurring payments. This innovation will enable users to authorize a one-time consent for automatic charges, simplifying transactions for utility bills, digital or streaming services, school tuition, gym memberships, and more [1][3][4].
Say goodbye to the traditional Boleto method, as Pix Automatico is projected to overtake it when it comes to automatic payments [1]. The new tool could also disrupt existing automatic debit services provided by banks, making life easier for both businesses and individuals.
Simplified Payments for All
For small businesses struggling with burdensome bank agreements for automatic debit services [5], relief is on the horizon with Pix Automatico. The new feature simplifies the process, allowing small merchants to receive recurring payments with ease [1].
Additionally, nearly 60 million Brazilians who do not own a credit card will now have access to subscription-based services previously available only to cardholders [1].
The Economy Boost and Beyond
According to a study by EBANX, Pix Automatico is expected to manage at least $30 billion in e-commerce transactions within its first two years, potentially driving economic growth [1]. For businesses in consumer services, financial sectors, and establishments like gyms and schools, the feature could lead to increased payments by up to 30%, boosting customer loyalty and reducing delinquency due to missed payments [2].
Bolstering Financial Inclusion and Transitioning Away from Cash
Pix Automatico plays an integral role in Brazil's broader financial inclusion efforts, providing millions of the unbanked and underbanked population with easier access to financial services [3]. By furthering the shift away from cash, it aligns with the country's strategy to digitalize payments and decrease transaction costs [3].
In summary, Pix Automatico is poised to revolutionize Brazil's payment landscape, offering increased convenience, accessibility, and efficiency for recurring payments, cementing Pix's position as a dominant payment method in the country.
[1] Study by payments platform EBANX.[2] Speaking at a central bank event.[3] Refers to Brazil's broader strategy to digitalize payments and reduce transaction costs.[4] Includes utilities, subscriptions, and rent.[5] Central bank regulation director Gilneu Vivan mentioned this process as burdensome for small businesses.
Businesses and individuals in Brazil can look forward to streamlined recurring payments with the introduction of Pix Automatico, a new technology that will simplify transactions for various services such as utility bills, digital subscriptions, and gym memberships, potentially overtaking the traditional Boleto method [1]. This innovation is predicted to boost economic growth by managing at least $30 billion in e-commerce transactions within its first two years [1], benefiting businesses in consumer services, financial sectors, and establishments like gyms and schools.
