Automatic Pix: new product set to allow for recurring instant payments in Brazil

On December 7, 2023, the Brazilian Central Bank (BCB) issued BCB Resolution No. 360, amending the regulations for Brazil’s ‘Pix’ instant wire transfer system. The resolution introduces operational rules for a new feature of the instant payment system known as Automatic Pix, which allows for automatic recurring payments via Pix, providing increased convenience and reduced collection costs for consumers and merchants.

The BCB has indicated that this new Pix product will facilitate the recurring billing of products and services that companies of various sizes and sectors offer. The feature seeks to enable payments by payer users who are clients of any payment service provider participating in Pix. Traditional automatic debit transactions (which already exist in Brazil) do not allow transactions where the payers (customers) and receivers (merchants) are clients of different payment service providers.

The new rules take effect on October 1, 2024, and market players will be required to make the new feature available by October 28. Participants who fail to comply will be subject to a daily fine (ranging from BRL 25,000 to BRL 50,000), capped at 60 days.

This new feature is part of the BCB’s ongoing efforts to develop instant payments and promote a payment alternative that is easy, safe, and cost-effective.

For further information on this topic, please contact Mattos Filho’s Banking & Financial Services practice area.