Popular instant payments platform Pix will delay the launch of its automatic draft feature until next June, according to Brazil’s central bank.
The new feature, called Automatic Pix, allows the platform’s users to pay recurring bills without authorizing each transaction. Originally scheduled for an October launch, no reason has been given for the delay.
The platform is operated by Brazil’s central bank, which has faced a series of challenges over the past few months. In April, the bank’s governor, Roberto Campos Neto, voiced concerns that market uncertainty made it difficult for him to provide proper guidance for the future.
Neto has also called for a constitutional amendment that would give Pix autonomy from the central bank, citing concerns that the bank doesn’t have the budget to run the service after the dynamic growth Pix has experienced in the past few years.
Gaining Traction
Pix launched in 2020 and was quickly adopted by the previously cash-based country. The platform has more than 150 million users and accounts for 90% of Brazil’s payments.
The platform recently introduced Pix Roaming, which allows foreign tourists to use Pix while visiting Brazil. Pix also recently launched International Pix, which allows Brazilian visitors to Uruguay, Argentina, Chile, and even some U.S. locations to use the service to pay for purchases abroad.
All-Encompassing System
Automatic payment support is the next step in Pix’s quest to become an all-encompassing system, like China’s Alipay and WeChat, that eliminates the need for card-based payments.
Brazil’s central bank touted Automatic Pix as a solution that would reduce billing costs for utility companies, schools, streaming services, and other subscription-based services. Pix also believes the new service will reduce credit delinquency.
While there is certainly a demand for the service, Brazil’s central bank has issues to solve first. The Brazilian Report cited multiple reasons for the delay of Automatic Pix, including everything from staffing shortages to a lack of clear payment dispute guidelines. It’s not clear if the central bank can resolve those issues in time to get Automatic Pix online by June.
