Brazil’s instant payment system Pix is launching a new recurring payments feature known as Pix Automatico on June 16. This initiative aims to compete directly with credit and debit cards by allowing users to authorize repeated charges with a single consent. According to the Central Bank of Brazil, which developed and operates Pix, this will simplify the automatic payment process for subscription-based services like utilities, gym memberships, and streaming subscriptions.

Projected Impact

Data from EBANX suggests that Pix Automatico could handle at least $30 billion in e-commerce transactions within its first two years. Since its launch in 2020, Pix has become Brazil’s most popular payment method, used by over 90% of the adult population and more than 15 million businesses. Last year, Pix transactions accounted for 80% of combined credit and debit card transaction volumes, totaling approximately 64 billion transactions with a 53% year-over-year increase.

Weakening the Card Market

Many recurring subscription services require storing payment information, but nearly 60 million consumers in Brazil do not have a credit card. Pix Automatico could potentially draw business away from traditional card issuers and prevent many users from ever needing to obtain one. Compared to conventional methods, Pix Automatico offers lower processing fees.

Pix plans to further disrupt the credit card market by introducing a buy now, pay later option for its customers in September. This feature is expected to enhance customer convenience while expanding the payment system’s reach and competitiveness.

New Architecture

Pix Automatico will replace the legacy Boleto system, which has been used for bank-slip payments for about 25 years. The new system aims to streamline subscription processes for small merchants offering recurring payments. Under the old setup, businesses in Brazil had to establish agreements with banks to provide automatic debit services.

The technical framework supporting Pix Automatico will be managed by PagStream, a subscription management platform developed by PagBrasil, which processes payments in Brazil for multinational e-commerce companies. Through PagStream, merchants can create and manage subscription plans, set billing frequencies, and automate customer communications around payment cycles. Actual transactions are executed via Pix based on buyer authorization.