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The Central Bank of Brazil (BCB) has announced a new timeline for the implementation of recurring payments on its highly popular Pix platform.
The BCB has pushed back the introduction of Automatic Pix from October 2024 to June 15, 2025, according to its latest resolutions.
Automatic Pix will aim to simplify recurring charges by allowing users to authorise periodic debits without requiring authentication for each transaction.
This feature is expected to be useful for making regular payments in areas such as education, health and streaming services, where the ability to make debit payments automatically is convenient for consumers.
Unlike the current direct debit system, which relies on bilateral agreements, Automatic Pix will operate using the existing Pix infrastructure, streamlining the process and reducing operational overhead.
New rules for access devices
Alongside the delay, the central bank has introduced two new resolutions, BCB Resolution No. 402/2024 and BCB Resolution No. 403/2024, aimed at enhancing the security mechanisms of Pix.
Effective immediately, these resolutions impose new rules for access devices, such as cell phones and computers, used to initiate Pix transactions.
Key points include that transactions using unregistered devices are limited to BRL200 ($36) per transaction and BRL1,000 per day, and devices must be registered if they have never been used to initiate a Pix transaction before exceeding these limits.
BCB Resolution No. 402/2024 modifies Pix Regulations from BCB Resolution No. 1/2020, introducing amendments for Automatic Pix payment authorisations and requiring all transactional account providers to offer Pix Automatic.
BCB Resolution No. 403/2024 updates the Pix Regulations attached to BCB Resolution No. 1/2020, mandating that Pix transactions be available through participants' main applications for natural persons via cell phones and enhancing risk management protocols.
Both resolutions came into force as of July 22, 2024. Compliance with the requirements for recurring scheduling of payments related to the Scheduled Pix product is required by October 28, 2024, and compliance with amendments to Article 89 regarding risk management is required by November 1, 2024.
Compliance with requirements for the initiation of payments related to Automatic Pix needs to be achieved by June 15, 2025.
Since its launch in late 2020, Pix has quickly become a staple in the Brazilian payments landscape, now accounting for 39 percent of all payments, putting it second only to card transactions (credit, debit, and prepaid), which account for 41 percent.
