In a significant stride towards revolutionising the financial landscape of Brazil, Pix, the nation's homegrown instant payment system, has today rolled out Pix Automático, a groundbreaking new recurring payment solution. This launch is not just another addition to the country's digital payment options; it represents a strategic move aimed at fostering the growth of Brazil's digital economy and expanding financial inclusion.
Pix, since its inception, has rapidly become an integral part of the daily financial lives of Brazilians. It has transformed the way people make payments, offering speed, convenience, and security. Now, with the introduction of Pix Automático, the system is set to redefine the recurring payment space, which has long been dominated by credit cards.
The overarching goal of Pix Automático's launch is to break down the barriers that have restricted access to certain offerings and services, previously only available to credit card holders. By doing so, it aims to empower millions of Brazilians who have been left on the fringes of the traditional recurring payment ecosystem, enabling them to enjoy the benefits of seamless, automated transactions for a wide range of services and products.
Under the Pix Automático framework, users are provided with a simple yet secure mechanism to authorise recurring payments. Through the innovative Open Finance infrastructure, users can give a one-time, foolproof authorisation that allows for automatic deductions from their bank accounts for scheduled payments. This not only streamlines the payment process but also enhances user convenience, eliminating the need for manual payments each time. Moreover, users retain full control over their finances, as they have the freedom to revoke this consent at any given moment. All transactions are transparently visible within the banking app, ensuring users can monitor their financial activities with ease.
EBANX, a leading payments platform with a deep understanding of the Brazilian market, has high hopes for the impact of Pix Automático. In a bold prediction, the company anticipates that this new payment method will unlock an astonishing amount of over USD 30 billion in the Brazilian digital commerce sector within its first two years of operation. Currently, recurring payments in Brazil contribute significantly to the economy, amounting to USD 50 billion per year. In the initial year of Pix Automático's rollout, it is expected that around USD 2 billion of this total will come from the migration of existing card users. However, the majority of the projected growth is poised to stem from new users, highlighting the vast untapped potential that Pix Automático is set to harness. This data serves as a clear indication that Pix Automático will successfully bring into the fold a large segment of the Brazilian population that has been excluded due to the lack of credit cards.
Pix Automático holds the promise of a paradigm shift in the Brazilian digital market, particularly in the realm of optimising recurrent payments. Presently, credit cards reign supreme in the recurring payment domain, handling the lion's share of transactions for software subscriptions, streaming services, and other recurring purchases. However, a staggering 60 million Brazilians find themselves excluded from this ecosystem simply because they do not possess credit cards. Pix Automático is specifically designed to bridge this gap. By offering a viable alternative, it aims to integrate these underserved customers into the recurring services ecosystem. According to EBANX's projections, Pix Automático could account for 12% of all Pix transaction volume, a significant milestone that would reshape the digital payment landscape.
Looking ahead, Pix has even more ambitious plans in store. As revealed in EBANX's annual study, Beyond Borders 2025, which utilises data from Payments and Commerce Market Intelligence (PCMI), the company aims to launch Pix Parcelado by the end of 2025. This new feature will enable customers to make purchases in instalments, a highly sought-after option in the Brazilian market. The introduction of Pix Parcelado is expected to give a substantial boost to the ecommerce industry. With the ability to pay in instalments, consumers are likely to make larger purchases, driving up the average transaction values. In fact, in Brazil, instalment offerings have already proven to be a major catalyst for growth, contributing to 40% of the weekly revenue growth for global companies over a six-month period. EBANX's annual study further projects that the volume of ecommerce transactions processed through Pix should grow at an impressive rate of 35% annually until 2027. This showcases the immense potential that lies ahead for Pix and the Brazilian digital economy as a whole.
The launch of Pix Automático marks a pivotal moment in Brazil's digital transformation journey. It not only offers a more inclusive and convenient payment solution but also sets the stage for further innovation and growth in the digital economy. As Pix continues to expand its offerings with initiatives like Pix Parcelado, the future looks bright for Brazilian consumers and businesses alike, with increased access to digital services and a more vibrant and dynamic digital marketplace on the horizon.
