Brazil’s Pix has been one of the most impactful success stories over the last decade. Created by the country’s Central Bank, the instant payments system purpose was to modernise Brazil’s payments industry by reducing consumers’ reliance on cash, lowering
financial costs, and fostering financial inclusion – and it succeeded brilliantly.
Launched in 2020, Pix’ numbers have skyrocketed over the last four years.
In 2023, 42 billion transactions were processed via Pix (up from 9.4 billion in 2021), with a value of $3.3 trillion.
Today, four in every five Brazilian adults use Pix in their daily lives, translating to 143 million people.
The success is reflected in the online sales world as well. Pix is already the second preferred payment method in digital commerce in Brazil, from physical goods to digital services like streaming and SaaS, accounting for 40% of the total value. By 2025,
Pix is projected to surpass credit cards for the first time.
Source: Projections by PCMI
analysed by EBANX
Following the success, Brazil’s Central Bank is continuing its efforts to expand Pix capabilities. Among other new services, Pix Automático will be launched in June 2025, redefining the payment of recurring bills or subscriptions.
Finextra spoke to Eduardo de Abreu, VP of Product at EBANX, a global technology company specialising in payment services for rising markets and a direct participant in Pix system since it first launched in 2020, about why recurring payments are an emerging
force worldwide, the impact of Pix Automático, and why it’s so crucial for global companies to start preparing for it today to ensure they will be ready by the first day it becomes operational.
The global rise of subscription payments
The launch of Pix Automático is a strategic move by Brazil’s Central Bank in order to address the growing number of subscription payments. According to
Zuora’s latest edition of their annual Subscription Economy Index (SEI) report, over the last decade, companies with subscription models have grown 3.4 times faster than the companies of the S&P 500.
Despite macroeconomic challenges, SEI companies have continued to achieve a YoY revenue growth of 10% in 2023, compared with 6% of S&P 500.
Source: Zuora
Further insights by
Juniper Research additionally indicate that recurring payments are expected to grow by 17% by 2027, reaching $15.4 trillion in transactions globally. While some countries have already embraced the opportunity of real-time recurring payments –
such as UPI Autopay in India and AFR in Hungary – the potential remains largely untapped.
De Abreu told Finextra that these trends are why the recurring payments market has been a key topic at EBANX’ 7th Global Payments Summit, taking place in four global installments over the course of 2024. One of the summit chapters highlighted the importance
of diversifying recurring payment methods for customers, especially when selling in emerging markets.
To further support these findings, EBANX had analysed data by the Payments and Commerce Market Intelligence (PCMI), finding that there are significant opportunities for subscription-based businesses in Latin America, where sectors like streaming, SaaS, and
gaming already account for more than $60 billion in online sales.
The numbers are clear: Latin America is the region with the second most monthly active users of Spotify, accounting for 22% of all subscribers,
as shown in their quarterly results report. Similarly,
Netflix saw its Latin American paid subscribers grow 16% in Q2 this year, compared to last year, based on data from July 2024.
“Pix Automático is undoubtedly one of the most anticipated features of the instant payment system since its launch in 2020,” de Abreu commented on the popularity of recurring payments in the region. “Since Pix was introduced, the first question from merchants
has been: ‘Does it support recurring payments?’ The recurring payment feature is in high demand from merchants, and as we can see, it takes a long time to be ready.”
Pix Automático: What is it and how does it work?
Amid the growth of recurring payments worldwide, subscription-based business models are gearing up for Pix Automático. From the launching of the new capability onwards, Pix users will be able to establish it for future transactions without additional interaction.
Pix Automático enables the merchant (payee) to set up a recurring payment instruction that will be authorised by the customer (payer), so that recurring payments can be made directly from the payer’s account. This will enable recurring payment setup for
both fixed and variable bills.
In practice, this means that Pix Automático can be used for fixed fees, such as streaming services, digital media, SaaS, or school fees, as well as variable fees, like utility bills. For subscription-based business models and other merchants benefiting from
recurring payments, Pix Automático will help address current challenges, like invalid card numbers or expired cards. It will also increase options.
“Pix Automático presents an opportunity for merchants receiving recurring payments to diversify their access by offering more payment methods with recurring features,” de Abreu explained. “More options means a better payment experience for customers, which
ultimately impacts growth. For merchants, this is a chance to further increase revenue and number of clients. Our
internal data indicates that companies accepting Pix in digital commerce are already experiencing a 16% increase in revenue and a 25% growth in the number of clients.”
Customers can activate recurring Pix Automático payments by scanning a QR code. Detailing the process, de Abreu outlined: “The first time a customer makes a payment, they will go through the enrollment process. This means they will select a subscription
plan, be redirected to their bank's app, and have the approval for the recurring payment. While the approval is happening, the customer has a window to cancel the payment.”
Additionally, Pix Automático will foster financial inclusion. While credit cards are currently responsible for 44% of the total value of online sales in Brazil, many consumers either don’t have access to a credit card or struggle with access to credit limits.
Pix Automático offers enhanced choice, which is likely to lead to increased consumption of recurring payments after its release.
Pix Automático will be offered by all institutions that participate in Pix, and as other Pix products will be free of charge for customers initiating the payment.
How can merchants prepare for Pix Automático?
Building a recurrence engine from scratch is no simple feat, and Pix Automático in particular is challenging to develop. “Pix Automático is not a simple product and is very specific to Brazil. Therefore, it requires local expertise to master,” de Abreu explained.
“A merchant could integrate it independently, but it would take significantly more effort than working with a partner. Since Pix Automático was created by a financial regulator, the way the process is communicated is very different from that of a payment technology
company.”
A technology partner will be able to provide merchants with the technical documentation needed in order to integrate the APIs for Pix Automático, streamlining the merchants’ backend development and offer access to simulated testing environments.
De Abreu explained that the time to start is now: “Merchants need to work with their teams now to understand the effort required to launch Pix Automático. This information is very valuable, as it relates to their investment planning.”
EBANX is already working with their own merchant clients, having started to prepare companies to operate with the new recurring Pix feature. “The next step, in December this year, is for merchants to participate in our sandbox environment, allowing them
to test their work. Everything they develop will be tested. After that, we will follow the timeline set by the Central Bank of Brazil for the final certification.”
The main objective is that merchants need to start integrating now, so that they can be ready by day one, in June 2025.
Brazil taking the lead in payment innovation
Brazil has proven that they are blazing the trail when it comes to payments modernisation, and the implementation of Pix Automático is another factor underlining the country's commitment to innovation.
Unlocking the potential and streamlining the availability of recurring payments to customers and merchants alike will undoubtedly have a positive impact on the entire ecosystem, and other countries will do well to follow Brazil’s example.
For merchants, now is the time to start. Pix Automático is coming in 2025, and as the old adage goes: The early bird catches the worm.