Digital Payment Platform Pix Introduces Recurring Payments to Enhance Competition with Traditional Credit Cards
In June 2025, Brazil welcomed the launch of Pix Automático, a new recurring payment feature for its popular instant payment system. This innovative development aims to disrupt the credit and debit card market, offering a seamless and cost-effective solution for businesses with subscription-based services.
Pix Automático is powered by PagStream, a subscription management platform developed by PagBrasil, and is expected to significantly reduce the dependence on credit and debit cards for recurring payments. This shift could lead to increased adoption of Pix over traditional card networks, particularly benefiting underbanked consumers who may not own a credit card.
One of the key advantages of Pix Automático is the reduced payment friction and cost savings it offers. Compared to card processing fees, Pix transactions are instant and often cheaper, which may incentivize merchants and consumers to shift towards Pix for repeat payments.
The potential impacts on the credit and debit card market are significant. Businesses with subscription models can now automate recurring charges via Pix, competing directly with cards that dominate recurring billing. Merchants can also benefit from higher payment completion rates due to smoother recurring payments, which can improve customer retention compared to card payments that sometimes fail due to expired cards or security flags.
Pix Automático is also expected to simplify the recurring payments process, offering lower processing fees compared to traditional methods. This could lead to a realignment of payment preferences, especially for subscription services and regular billing contexts.
Another exciting feature of Pix Automático is its ability to allow users to authorize recurring charges with a single consent, facilitating automatic payments for services like utilities, gym memberships, and streaming services. This convenience is expected to increase conversion and retention rates for merchants.
Data from EBANX estimates that Pix Automatico could process at least $30 billion in e-commerce transactions within its first two years. Given that Pix has already become Brazil's most popular payment method, used by more than 90% of the adult population and more than 15 million businesses, this figure is not surprising. Last year, Pix's transaction volume was 80% higher than the combined total for credit and debit card transactions.
The Central Bank of Brazil developed and operates Pix, ensuring its security and reliability. The system has seen impressive growth since its launch in 2020, with roughly 64 billion transactions last year, a 53% year-over-year increase.
While Pix Automático is currently focused on recurring payments, the Central Bank of Brazil has also announced plans to introduce a buy now, pay later option for Pix in September. This feature is expected to further enhance the platform's appeal and versatility.
In conclusion, Pix Automático represents a significant step forward for the Brazilian payment landscape. By offering a faster, potentially cheaper, and more inclusive alternative for recurring payments, it is poised to challenge credit and debit cards and redefine the way businesses and consumers approach subscription-based services and regular billing.
- The subscription management platform powering Pix Automático, a new recurring payment feature for Brazil's popular instant payment system, is called PagStream, developed by PagBrasil.
- With Pix Automático, users can authorize recurring charges with a single consent, facilitating automatic payments for services like utilities, gym memberships, and streaming services, which could potentially increase conversion and retention rates for merchants.
