The development roadmap for PIX, the Brazilian Central Bank’s real-time payment system, is a long one.
For 2023, the most-anticipated feature is entitled “automatic PIX,” enabling the system’s auto-debit function. With it, users will be able to authorize the payment of utility bills with direct debits from their bank accounts, and pay for recurring services such as subscriptions.
Unlike other automatic debit solutions, PIX’s new feature does not require bilateral agreements between banks and recipients. This means that not only will PIX continue to cause big banks’ services revenues to drop, but that it will also compete directly with credit cards and digital wallets.
“By combining the PIX structure with open finance protocols, the Central Bank will enable so-called variable recurring payments in Brazil, which already work in the United Kingdom, for example,” Bruno Diniz, a fintech adviser and managing director at Spiralem consultancy, tells The Brazilian Report. “Through this feature, those who do not have access to a credit card can make this type of transaction as long as they have funds in their bank or payment accounts.”
“Several projections made when the system was launched back in 2020 did not come close to the actual reach...
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