Recurring Payments Feature to Draw $30 Billion in Payments to Brazil’s Pix

Pix

The soon-to-be-released recurring payments feature of Brazil’s payment system, Pix, is reportedly expected to draw $30 billion in eCommerce payments alone to Pix in two years.

The recurring payments feature, Pix Automático, is expected to launch in June and will allow users to automate the payment of utilities, streaming services and other recurring bills, Reuters reported Tuesday (Jan. 28), citing FinTech company and early Pix Automático adopter Ebanx.

“Pix Automático should be really relevant,” Ebanx Vice President of Product Eduardo de Abreu said in the report.

Most of the growth delivered by the new feature is expected to come from consumers who don’t have a credit card, according to the report.

For the companies doing the recurring billing, Pix Automático will provide a way to receive payments by partnering with just one company, rather than the several banks they must partner with to handle the bank invoices and automatic debiting that is now commonly used in Brazil, the report said.

Pix, the online instant payment system designed by Brazil’s central bank and launched in late 2020, already handles over $338 billion in transactions per month, per the report.

Pix Automático promises to reshape how businesses handle recurring payments in emerging markets, particularly for global software-as-a-service (SaaS) companies operating in Brazil, de Abreu told PYMNTS in an interview posted in October.

“When it comes to B2B, it will bring the ability to digitize the whole payments infrastructure on the procure-to-pay front,” de Abreu said. “Basically, the whole journey for their customers becomes a very powerful payment experience in that Pix Automático can set recurring billing.”

Ebanx said in October that it enabled merchants to use its payment services to prepare to integrate Pix Automático.

The company released technical documentation that enables its partners to start backend development and access a simulated environment that allows them to test their integrations of Ebanx’s API for Pix Automático.

“This solution streamlines billing processes and subscription payments, reduces friction and enhances payment efficiency, for users and businesses,” Ebanx Chief Product and Technology Officer Fabio Scopeta said at the time in a press release, speaking of Pix Automático.