The Automatic Pix, a new stage of the Brazilian instant payment system, was launched by the Central Bank in June. The functionality promises to impact both individuals and companies, but it has also been generating doubts in businesses that used scheduled recurring Pix, who have not yet understood which option is the best.
According to Felipe Negri, CEO of Pinbank, a one-stop-bank-provider with a complete ecosystem of financial solutions, the answer is extremely individual for each organization. “Both modalities have benefits, but they are applied more strategically when designed to address specific needs. In other words, it is a decision related to the business objectives and types of operations”, he says.
Differences between the functionalities
As an alternative to traditional automatic debiting, Automatic Pix facilitates recurring charges, such as utility bills, monthly fees, and subscriptions. In practice, companies send a membership proposal to customers, who need to authorize the payments. This process is done only once, directly in the financial institution’s application, and can be canceled or even edited whenever necessary.
On the other hand, with Recurring Pix, periodic payments are made through custom integrations and automations developed by fintechs and specialized providers. In this modality, the user registers the receiver’s data, as well as defines the values and schedules the dates of the transactions.
According to Segundo Negri, this latest format worked as an ‘adjustment’ for companies looking to reduce operational costs and have more financial flexibility. ‘The recurring scheduled Pix is not exactly a standardized model like the automatic one, but it still streamlines transactions and reduces costs. It is an excellent option for payers seeking autonomy and able to organize themselves financially,’ he explains.
On the other hand, the executive points out that automatic Pix brings fewer limitations by establishing a joint dynamics. ‘With both parties agreeing and adapting payments and receipts in a way that works for both sides, the solution can reduce transactional noise and optimize operations,’ he adds.
Future of modalities
New functionalities like these are likely to be increasingly incorporated into companies’ day-to-day operations, considering the success of Pix in the national market: the Central Bank indicates that approximately 166 million individual persons and 19.5 million legal entities have already used the instant payment method.
The duration in effect of the modalities can also make a difference in the use of each one, especially concerning the implementation of improvements. While automatic Pix has been in effect for about a month, recurring scheduled Pix became mandatory in the country in November 2024.
“It is clear that the new feature proposed by the Central Bank is in the spotlight right now, especially for small and medium businesses looking to modernize monthly financial transactions and reduce costs,” reinforces Pinbank’s CEO. “In this changing scenario, the best of both worlds will be for those who know how to carry out the digitalization of these operations intelligently, taking advantage of older benefits and exploring new promising opportunities,” he concludes.
