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Brazil delays launch of recurring Pix payments

The Brazilian central bank has pushed back the addition of recurring payments to its Pix platform from October until next June.

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Brazil delays launch of recurring Pix payments

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Automatic Pix will facilitate recurring charges that let users authorise periodic debits automatically, without the need for authentication for each transaction.

The central bank predicts the feature will be useful for a host of options, including schools, colleges, gyms, condominiums, social clubs, health plans, streaming services, news portals, subscription clubs, and FS firms.

In addition to making life easier for users, the bank expects cost reductions because the operation is independent of bilateral agreements, as is currently the case with direct debit, and uses the infrastructure already created for Pix to operate.

Launched in late 2020, Pix has proved a runaway success and already accounts for 39% of all payments, behind only card transactions (credit, debit, and prepaid), which account for 41%.

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Comments: (1)

Albert Morales

Albert Morales GM Brazil at Belvo

Just to clarify for the audience, Recurring Pix is already available via Open Finance (PISPs already offering such solution). The recurring Pix available is limited to fix amounts, suitable for the use-cases mentioned in this article: school fees, gym or any kind of subscripion, loan installments, etc.

What has been delayed is the implementation of Variable Recurring Payments (VRP). Which will will include other use-cases that require to charge variable amount e.g: e-commerce, variable utility bills, etc.

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