Boku, a global provider of localised payment solutions, has received a Payment Institution license from the Central Bank of Brazil (BCB).

The license authorises Boku to operate as both a Payment Initiator and E-money Issuer, paving the way for the company to engage in Brazil’s Open Finance ecosystem as a Payment Initiation Service Provider (PISP).

This approval is a necessary step toward enabling Pix payments without redirection and sets the groundwork for the introduction of Pix Automático to merchants by early 2026.

The development is expected to support millions of Brazilians, particularly those without access to credit cards, by facilitating secure, recurring payments for services such as streaming, subscriptions, and digital goods.

It aligns with Brazil’s broader objectives of advancing digital payment adoption and improving financial inclusion.

Pix, launched by the Central Bank in 2020, has become the most widely used payment method in Brazil, with over 76% of adults utilising the system.

It is especially popular among younger consumers who typically use digital-first banks such as Nubank.

Pix Automático, which launched in June 2025, introduces support for recurring payments within the Pix ecosystem.

This functionality caters to increasing demand for convenience and is crucial in a market where consumer preference is often shaped by ease of use rather than brand loyalty.

Boku’s new license enables it to further expand its offerings in Brazil’s digital payments space.

It is a foundational requirement for full participation in Pix and Open Finance initiatives, with further regulatory approvals to follow.

Pix Automático enhances Pix’s capabilities by supporting recurring payments in addition to its existing one-time transaction model.

It allows merchants with subscription-based services to integrate recurring billing directly through Pix, reducing checkout friction and improving access for underbanked users.

The introduction of recurring payments is expected to improve conversion rates and facilitate broader adoption of local payment systems.

Commenting on the development, Stuart Neal, CEO of Boku, said:

“Our mission is to let consumers everywhere pay for what they love in the way they prefer. For merchants, that means offering localised options that unlock new growth. Our commitment to expanding local payment options, like Pix Automático, shows how innovation can drive financial inclusion at scale.”

Featured image credit: Edited by Fintech News America, based on image by Samuel Costa Melo via Unsplash