Banco Central do Brasil has released operational guidelines for the Pix Automático product. Pix Automático will be available to the population in October 2024.
The new feature is designed “to streamline recurring payments, including monthly service fees.”
The launch of Pix Automático is drawing near.
On Thursday (7th), Banco Central do Brasil (which is the central bank of Brazil) “unveiled the key regulatory framework “outlining the operational rules for this new product. Key updates include: BCB Resolution 360, which modifies the existing Pix Regulation, annexed to BCB Resolution 1 dated August 12, 2020; BCB Resolution 361, which amends the Pix Penalties Manual, annexed to BCB Resolution 177, dated December 22, 2021; and Normative Instructions 436 and 437, which define the operational procedures for Pix Automático and establish rules for transaction value limits, respectively.”
A presentation on how Pix Automático will work took place during “the 21st Plenary Meeting of the Pix Forum, held on Thursday afternoon (7), where other topics related to the continuous improvement of Pix were also discussed.”
Carlos Eduardo Brandt, Head of Pix’s Operation Management. (Gepix), said:
“The publications released today are the outcome of in-depth discussions with the payments industry and companies from various sectors. They also reflect the collaborative approach established through the Pix Forum. We have designed a product that will be sufficiently flexible to cater to the diverse needs of the society. This achievement would not be possible without the collaborative efforts of the market and the technical expertise of the BCB employees.”
According to Angelo Duarte, Head of the Competition and Financial Market Structure Department, Pix Automático will “streamline recurring billing for products and services, ultimately enhancing efficiency and competition within the sector.”
He explained:
“As users already have established relationships with these companies, where they consume their products or services on a regular basis, the option to pay via Pix Automático will benefit both parties. From the payer’s perspective, once authorization is granted, Pix Automático becomes a seamless payment method, offering convenience and a brilliant experience by reducing the chances of missed payments due to forgetting the due date. On the payee’s end, Pix Automático has the potential to lower default rates and streamline the billing process, while also enabling an expansion of the customer base given the widespread use of Pix.”
Another advantage for payees is the potential for lower costs.
As Pix Automático will use the existing Pix infrastructure, the model, “unlike the current debit system, does not rely on bilateral agreements.”
This means that companies can “have an account with just one Pix participant and receive transactions from their customers, irrespective of their banking affiliations. Additionally, operational procedures for Pix Automático will be standardized and established in the Pix Regulations and other specific documents to be published later by the BCB. This standardization facilitates implementation and ensures fair competition among all Pix participants.”
Angelo added:
“The expectation is that these lower costs will encourage businesses of various sizes and sectors to adopt Pix Automático for recurring payments. This could potentially expand access to certain services for the population.”
To maintain the safe and efficient operation of Pix, the BCB Resolution 360 established general operating rules for Pix Automático, “detailed by normative instructions.”
For more details, check here.