Brazil to expand Pix payment system

Brazil is planning to expand its highly successful Pix instant payment system to include international transactions and recurring payment features. This move is significant for retailers because Pix has already become a primary alternative to credit cards in South America. The central bank is now looking to link Pix with other international payment systems, potentially creating a new global standard for how customers pay at the point of sale without using traditional card rails. For operators, the most important update is the introduction of 'Pix Automático.' This feature allows for recurring payments, similar to a digital subscription or a monthly financing installment, but processed instantly through the central bank's infrastructure. This could drastically lower transaction costs for merchants who currently rely on expensive credit card processing for recurring revenue. Additionally, the move toward 'Pix by Approximation' (contactless mobile payments) means the system is directly targeting the convenience of Apple Pay and Google Pay. If you operate in international markets or deal with cross-border e-commerce, these updates suggest a future where high-interest credit cards face stiff competition from government-backed instant transfer systems that offer lower fees and faster settlement for the merchant.

Source: Finextra — Lending

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