Brazil’s wildly popular instant payment system, Pix, is set for another major development this month with the introduction of a new recurring payments feature, according to central bank officials.

Launched in late 2020, Pix has swiftly become the dominant payment method in Latin America’s largest economy, overtaking cash, debit, and credit cards, according to Reuters.

In 2023 alone, it processed more than 26 trillion reais (US$4.61 trillion) in transactions.

Originally scheduled for release last October, the new feature, dubbed “Pix Automático”, will go live on 16 June.

It will enable users to authorise recurring payments with a single consent, the central bank said.

This advancement will facilitate automatic payments for utilities, mobile phone bills, school fees, gym memberships, and digital or streaming services.

“‘Boleto’ will be overtaken by Pix Automático for automatic payments,”

said Renato Gomes, director of financial system organisation at the central bank.

The traditional ‘boleto’ payment slip system moved 6.2 trillion reais last year, according to the banking federation Febraban.

Speaking at a central bank event in São Paulo to introduce the new feature, Gomes also noted that current automatic debit services offered by banks are likely to be disrupted.

These services require companies to enter into agreements with banks, a process that Gilneu Vivan, the central bank’s regulation director, described as burdensome, especially for small businesses.

Pix Automático aims to streamline this, enabling small enterprises to easily accept recurring payments without complex arrangements.

Vivan further pointed out that nearly 60 million Brazilians do not possess a credit card.

This new functionality will allow them to access subscription-based services that were previously only available to cardholders.

Featured image credit: Edited by Fintech News America, based on image by thanyakij-12 via Freepik