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Pix to Offer Recurring Payments to Further Compete with Credit Cards

By Tom Nawrocki
June 5, 2025
in Emerging Payments, News
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Fintechs in Brazil: More Than Just Credit Cards, It Is the Super-App, PIX recurring payments

Fintechs in Brazil: More Than Just Credit Cards, It Is the Super-App

Brazil’s instant payment system Pix is set to launch a new recurring payments feature, designed to compete directly with credit and debit cards.

Pix Automatico will go live on June 16, allowing users to authorize recurring charges with a single consent, according to the Central Bank of Brazil, which developed and operates Pix. This will facilitate automatic payments for subscription-based services such as utilities, gym memberships, and streaming services. Pix Automatico was originally announced to launch last October, though no reason was given for the delay.

Data from EBANX estimates that Pix Automatico could process at least $30 billion in e-commerce transactions within its first two years.

Since its launch in 2020, Pix has become Brazil’s most popular payment method, used by more than 90% of the adult population and more than 15 million businesses. Last year, Pix’s transaction volume was 80% higher than the combined total for credit and debit card transactions. Overall, there were roughly 64 billion Pix transactions last year, a 53% year-over-year increase. 

Weakening the Card Market

Many recurring subscription payments rely on storing credit cards on file, yet nearly 60 million consumers in Brazil do not own a credit card. Pix Automatico not only draws business away from credit card issuers but may also prevent many consumers from ever needing to acquire a card. Compared to traditional recurring payments, Pix Automatico also offers lower processing fees.

Pix plans to further disrupt the credit card market by introducing a buy now, pay later option for its customers, a feature expected to launch in September.

New Architecture

Pix Automatico is set to replace the legacy Boleto system, a bank-slip payment method that predates Pix by about 25 years. The new system aims to streamline the subscription process for small merchants looking to offer recurring payments. Under the previous setup, businesses in Brazil were required to establish bank agreements with banks to provide automatic debit services.

The technical underpinnings behind Pix Automatico will be powered by PagStream, a subscription management platform developed by PagBrasil, a fintech that processes payments in Brazil for multinational e-commerce businesses.

Using PagStream, merchants can create and manage subscription plans, set billing frequencies, and automate customer communications around payment cycles. While recurring charges are scheduled through PagStream, the actual transactions are executed via Pix, based on buyer authorization.

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Tags: BrazilPagBrasilPixRecurring PaymentsSubscriptions

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