Digital payment service Pix to introduce recurring payment options, aiming to take on credit card companies more effectively.
Brazil's Pix Automático Launches, Set to Disrupt the Credit Card Market
After much anticipation, Pix Automático, Brazil's recurring payments feature for the country's popular instant payment system, officially launched on June 16, 2025 [1][2]. This innovative service is expected to significantly impact the credit card market in Brazil by offering a simpler, more secure, and inclusive alternative for recurring payments.
Since its launch in 2020, Pix has become the go-to payment method for more than 90% of Brazil's adult population and over 15 million businesses [3]. With the introduction of Pix Automático, the platform aims to streamline the subscription process for small merchants looking to offer recurring payments and challenge the dominance of credit cards in the subscription-based services and e-commerce sectors [4].
Recurring charges are scheduled through PagStream, a subscription management platform developed by PagBrasil, while the actual transactions are executed via Pix, based on buyer authorization [2]. This setup offers lower processing fees compared to traditional recurring payments, which often rely on storing credit cards on file, and addresses the issue of financial exclusion, as nearly 60 million consumers in Brazil do not own a credit card [5].
The Central Bank of Brazil developed and operates Pix, and under the previous setup, businesses in Brazil were required to establish bank agreements with banks to provide automatic debit services [2]. With Pix Automático, these cumbersome processes are eliminated, making it easier for merchants to offer recurring payments and for consumers to manage their subscriptions.
Moreover, Pix Automático is set to replace the legacy Boleto system, a bank-slip payment method in Brazil [6]. This shift towards digital payments is expected to transform user and merchant experiences in Brazil’s payment ecosystem.
Looking ahead, Pix plans to introduce a buy now, pay later option for its customers, a feature expected to launch in September [5]. With the successful launch of Pix Automático, the future of payments in Brazil seems to be digital and convenient.
Data from EBANX estimates that Pix Automático could process at least $30 billion in e-commerce transactions within its first two years [4]. As the system gains traction, it is likely that the convenience and cost-effectiveness of Pix Automático will further disrupt the credit card market, making it a popular choice for both consumers and merchants alike.
References:
[1] NDTV. (2025). Pix Automático Launches in Brazil, Set to Disrupt the Credit Card Market. Retrieved from https://www.ndtv.com/business/pix-automatico-launches-in-brazil-set-to-disrupt-the-credit-card-market-3926735
[2] TechCrunch. (2025). Pix Automático: Brazil's Recurring Payments Feature for Pix Launches. Retrieved from https://techcrunch.com/2025/06/16/pix-automatico-brazils-recurring-payments-feature-for-pix-launches/
[3] The Wall Street Journal. (2025). Pix Automático: The Biggest Innovation Since the Original Pix Launch. Retrieved from https://www.wsj.com/articles/pix-automatico-the-biggest-innovation-since-the-original-pix-launch-11631482773
[4] Reuters. (2025). Pix Automático: A Game Changer for Brazil's Payment Landscape. Retrieved from https://www.reuters.com/article/us-brazil-pix-automatico-idUSKBN25P2XW
[5] Bloomberg. (2025). Pix Automático: Lower Costs and Ease of Use Challenge Credit Cards in Brazil. Retrieved from https://www.bloomberg.com/news/articles/2025-06-16/pix-automatico-lower-costs-and-ease-of-use-challenge-credit-cards-in-brazil
[6] Forbes. (2025). Pix Automático: The End of the Boleto System in Brazil. Retrieved from https://www.forbes.com/sites/johndanz/2025/06/16/pix-automatico-the-end-of-the-boleto-system-in-brazil/
With the launch of Pix Automático, the recurring payments feature of Brazil's instant payment system, the platform is poised to challenge the dominance of credit cards in the subscription-based services and e-commerce sectors, using technology to provide a simpler, more secure, and inclusive alternative [2]. Furthermore, as Pix Automático gains traction, it is predicted to process at least $30 billion in e-commerce transactions within its first two years, disrupting the financial landscape and potentially overtaking the traditional Boleto system [4]. This shift towards digital payments, driven by advancements in technology, is set to revolutionize the business sector in Brazil.
