The news: Brazil’s central bank rolled out a recurring payments feature to the Pix instant payment system, according to a report from Reuters.

Pix Automático lets users set up recurring payments with a one-time consent authorization.

Digital revolution: Since its debut in 2020, the state-owned Pix has exploded in use. In May 2025, roughly 167.5 million Brazilians completed more than 6.6 billion transactions using the payment method.

Brazilians and businesses benefit from the instant funding and lower transaction costs than credit cards, while also unlevering cash from the top pedestal. As a result, businesses often incentivize Pix payments through promotions and free shipping offers to maximize benefits.

Sustained disruption: Pix Automático is expected to cement its dominance in the Brazilian payment system for more key reasons.

• Brazilians paying recurring bills with cash can switch to streamlined automatic payments through Pix.
• Brazilians without credit or debit cards can enroll in subscription services through Pix to make recurring payments—putting a huge number of users on the map.

Pix also threatens traditional banking’s debit offerings by providing similar services through state-run payment systems.

Our take: Pix’s use likely can keep growing steadily if it can target new volume opportunities. 

Vendors often benefit from the reduced fees under Pix transactions versus credit card transactions. These merchants are likely to give incentives to Brazilians to pay in the format either in savings or rewards, which could shift more volume over to Pix.

Traditional banks and credit card issuers should remain on notice as Pix expands its payments domain. As their offerings become less competitive against Pix’s transaction rates and consumer benefits, they should consider how to keep consumers loyal through rewards or cash back.