Automatic Pix, the new stage of Brazil’s instant payment system, was launched by the Central Bank in June. The functionality promises to impact both individuals and businesses, but it has also raised questions among companies that used recurring scheduled Pix, which have not yet understood which option is the best.
For Felipe Negri, CEO of Pinbank, a one-stop-bank-provider with a complete ecosystem of financial solutions, the answer is highly individual for each organization. “Both models have benefits, but they are applied more strategically when designed to solve specific needs. In other words, it’s a decision related to the company’s goals and types of operations,” he says.
Differences between the functionalities
As an alternative to traditional automatic debit, Automatic Pix simplifies recurring charges, such as utility bills, subscriptions, and memberships. In practice, businesses send a membership proposal to customers, who must authorize the payments. This process is done only once, directly in the financial institution’s app, and can be canceled or edited whenever necessary.
With recurring Pix, periodic payments are made through custom integrations and automation developed by fintechs and specialized providers. In this model, the user registers the payee’s details, sets the amounts, and schedules the transaction dates.
According to Negri, the latter format worked as an ‘adaptation’ for companies looking to reduce operational costs and gain financial flexibility. ‘Recurring scheduled Pix isn’t exactly a standardized model like Automatic Pix, but it still streamlines transactions and reduces expenses. It’s an excellent option for payers who seek autonomy and can manage their finances,’ he explains.
On the other hand, the executive points out that Automatic Pix has fewer limitations by establishing a joint dynamic. ‘With both parties in agreement and adapting payments and receipts in a way that works for them, the solution can reduce transactional noise and optimize operations,’ he adds.
Future of the models
New functionalities like these are expected to be increasingly incorporated into businesses’ daily operations, given Pix’s success in the national market: the Central Bank reports that roughly 166 million individuals (Pessoas Físicas) and 19.5 million businesses (Pessoas Jurídicas) have already used the instant payment method.
The time each model has been in effect may also influence their usage, particularly regarding the implementation of improvements. While Automatic Pix came into effect about a month ago, recurring scheduled Pix became mandatory in the country in November 2024.
‘Of course, the new functionality proposed by the Central Bank is in the spotlight right now, especially for small and medium-sized businesses looking to modernize monthly financial transactions and reduce costs,’ emphasizes Pinbank’s CEO. ‘In this changing scenario, the best of both worlds will belong to those who can intelligently guide the digitalization of these operations, leveraging older advantages and exploring promising new opportunities,’ he concludes.
