Pix Automatico: the new functionality to power recurring payments

The digital payment landscape in Brazil is about to undergo another significant transformation with the introduction of “Pix Automatico” –  Automatic Pix, in English – a functionality within the existing Pix payment system. 

Scheduled for launch in April 2024, Pix Automatico is poised to revolutionize recurring payments, offering convenience, cost-saving benefits, and increased market competitiveness. 

In this blog post, we’ll delve into the details of Pix Automatico, its impact on businesses and consumers, and the steps leading up to its official release, creating a more seamless payment experience for all.

What is “Pix” and “Pix Automático” (Automatic Pix)?

If you still need to learn what it is and how to use Pix payment, picture this: you’re at a cafe, enjoying a delicious cup of Brazilian coffee, and the bill arrives. With Pix, you can settle the payment instantly. No more fumbling for cash or waiting for credit card approvals. This payment method seamlessly integrates with your banking app, making transactions smoother.

Launched by the Brazilian Central Bank in November 2020, Pix Brazil is an alternative payment method that allows transfers between bank accounts within seconds at any time or day. It became so popular that more than 70% of the Brazilian population used it in 2022.  

When it was launched, the Central Bank of Brazil promised that you would keep adding new features to the Pix Brazil payment system, which is precisely where “Pix Automático” comes in. Automatic Pix, also called Pix Recurrence, is a payment method that facilitates recurring charges through the Pix system. 

This billing option is ideal for businesses offering products or services that are billed regularly, with the flexibility to bill monthly, biweekly, bimonthly, or any other preferred interval. Announcing this long-awaited functionality for Pix represents a significant opportunity, as 147 million active Pix users can only pay for recurring purchases with cards. 

Features and benefits of Pix Automatico

Having understood what Pix and Pix Automatico are, let’s focus on their main features and benefits for businesses and individuals in Brazil. 

Automatic Pix features

• Automatic recurring payments;
• Payment confirmation and value compensation in real-time;
• 24/7 Transactions – including on the weekends and holidays;
• Transactions are carried out directly by the Central Bank of Brazil;
• Offered by all major banking institutions and fintech in Brazil.

Pix Automatico is a game-changer for businesses

Automatic Recurring Payments

Pix Automatico allows users to authorize recurring payments directly from their bank accounts, such as utility bills, subscriptions, and other services. This feature eliminates the need for multiple agreements between companies and financial institutions, simplifying the process and reducing operational complexities.

It also facilitates companies to receive automated payments, which can be very useful for digital businesses with subscription models such as streaming, SaaS, gaming, sharing economy, and more.

Standardized Contracts

Companies and government agencies can now rely on a single standardized contract within the Pix system, eliminating the need for multiple agreements with different terms and fees. This streamlined approach saves time and money, making it more efficient for businesses to offer recurring payment options to their customers.

Enhanced Market Competitiveness (domestic x cross-border)

Pix automatic features not only benefits businesses within Brazil but also attract international companies looking to expand their services and have cross-border payments in the country. This development creates more competitiveness in the market and opens up new opportunities for domestic and global brands.

Empowering Consumers with Pix Automatico

Convenient Recurring Payments

Individuals can enjoy the convenience of automatic recurring payments without the hassle of manual authorization for each transaction. Whether it’s monthly bills, memberships, or subscriptions, Pix Automatico simplifies the process, making financial management easier for consumers.

Flexible Management

Users have the flexibility to manage their recurring payments through automatic Pix features. They can set a maximum value for installment amounts to be debited, change or cancel payments at any time, and choose the most convenient method, such as reading QR codes or using the Pix ‘Copy and Paste’ feature.

Financial Inclusion

Pix Automatico aligns with the overall objective of PIX to enhance financial inclusion. By making recurring payments more accessible and user-friendly, it contributes to the broader adoption of digital payment solutions, benefitting a more comprehensive range of consumers.

Pix Automatico: available through EBANX in April 2024

Pix Automatico is set to be officially launched in April 2024, and EBANX will be at the forefront of supporting this new recurring payment method. This development marks a significant milestone in the evolution of Brazil’s payment system, and we are ready to deliver the best performance for merchants who wish to offer this innovative solution.

The potential of Pix Automatico is undeniable, as demonstrated by the success of the standard Pix, which was launched at the end of 2020. So, EBANX has analyzed internal data from merchants, considering over a million Pix transactions made in the last quarter of 2021. Take a look at these interesting insights:

• New Customer Acquisition: 

62% of consumers using Pix were new, meaning they had not shopped on the website or app of the merchant that they had purchased in the previous year. These new customers accounted for almost 40% of the volume paid via Pix during the analyzed period.

• Sales Volume Increase: 

On average, businesses that offered Pix via EBANX experienced a 20% increase in sales volume. Can you imagine leveraging these results when automatic Pix features are launched next year?

EBANX will support two monetization models of Pix Automatico that your business can offer to clients. These are:

• Billing Model: 

The first payment happens in real-time, at the time of purchase, and Pix will automate the subsequent amounts in the following periods.

• Trial Model: 

Authorization happens in real-time, but the first charge is at the end of the trial period. The other payments are made automatically in the following periods.

So, now it is your turn! Ready for another Pix revolution? As seen in this article, there’s an excellent opportunity for businesses to enhance their recurring payment processes, attract new customers, and optimize sales volume next year. With EBANX’s support, merchants can offer Pix Automatico and stay ahead in the dynamic Brazilian market. 

Learn more about our payment solutions and how we can foster your expansion across Latin American and African markets.

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