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Pix, Brazil’s instant payments system, has introduced a recurring payments mechanism, aiming to simplify bill payments for consumers.
Automatic Pix, which today (June 16), will allow users to authorise payments for recurring services, such as utility bills, school fees, gym memberships, or streaming subscriptions, so that they are paid automatically on the scheduled due date.
The feature, developed by the Central Bank of Brazil (BCB), is intended to make recurring payments more convenient, secure, and inclusive for both consumers and businesses.
"Automatic Pix will be innovative, practical, easy to use for both the payer and the recipient, cheap and inclusive. On the agreed day, the payment will be made normally via Pix, without the payer having to worry. It will be good for everyone", said Breno Lobo, deputy head of the department of competition and financial market structure at the BCB.
Automatic Pix will be free for consumers, while charges for merchants will depend on arrangements with their payment service providers (PSPs).
The BCB has also confirmed that consumers will retain full control over their authorisations, stating that payments can be cancelled at any time, and that users will have access to a dedicated section in their bank’s app for managing recurring Pix payments.
Customers can also set maximum charge amounts, receive payment notifications, and view authorisation histories.
A win for merchants?
For merchants and service providers, the BCB has estimated that Automatic Pix could help expand the customer base of Pix users, which already stands at more than 160m, more than half the country’s 212m population.
The feature is also expected to reduce late payments by automating collections, while potentially lowering operational costs by simplifying integration with Pix’s infrastructure.
However, only organisations with an active company registration for at least six months will be permitted to use the new feature, as part of efforts to strengthen consumer protection.
Opportunities for PSPs
PSPs with a presence in Brazil, including fintechs such as Nubank, international firms such as Wise and Remitly, and traditional banks such as Itaú, should also see Automatic Pix as an opportunity.
For example, although the functionality is free for consumers, PSPs could open up a new revenue stream by charging merchants for offering the channel to consumers.
Pix has strong brand awareness among the public, meaning that the new mechanism will likely be embraced relatively quickly.
The automated service could also open the door for new valued-added features from financial services in the country.
For example, local fintechs and banks could offer budgeting tools or customised payment plans via their mobile apps, which could be layered on top of Automatic Pix, improving customer retention.
The BCB has confirmed that Automatic Pix can be offered via open finance, which should pave the way for partnership opportunities between fintechs and traditional banks.
Fintechs in particular could find that this gives them more leverage when competing for recurring payment processing.
Security measures in place
The BCB has identified security as one of the fundamental principles of Pix, insisting that it “works continuously to ensure that Pix and its functionalities, including Automatic Pix, maintain a high standard of security”.
Alongside the launch of the new functionality, the BCB has also issued stating that payment instructions can be sent only with explicit user consent, mandating that the recipient’s company registration must be clearly identified, and requiring PSPs to assess the suitability of their clients before offering the feature.
Refunds in cases of undue charges will follow existing Pix procedures via the Special Refund Mechanism (MED), and PSPs will be required to process refunds if errors in authorisation management are identified, with fraud cases evaluated jointly by the institutions involved.
Contactless Pix limits also introduced
Separately, the BCB has also set on contactless Pix transactions.
From December 1, 2025, contactless Pix transactions via Pix by Proximity will be capped at BRL500 ($90) per transaction, with the option for users to set daily limits.
This is intended to enhance consumer protection when using the popular product.
