The feature, intended for automatically paying recurring bills, has been delayed due to ongoing discussions about granting financial autonomy to the central bank, a proposal strongly advocated by Governor Roberto Campos Neto.
Campos Neto has indicated that the current budgetary constraints of the central bank could eventually hinder the operation of Pix. Last week, a senate committee deferred the vote on the financial autonomy proposal, which is opposed by Brazil's President Luiz Inacio Lula da Silva.
The new feature, named Pix Automatic, will allow automatic periodic debits without requiring authentication for each transaction. This development is anticipated to further expand Pix's role in the payment ecosystem, potentially impacting the use of credit cards and bank invoices.
According to the central bank, the Pix Automatic feature will help recipients such as public utilities, schools, health plans, streaming services, subscription clubs, and financial sector companies reduce billing procedure costs and minimize delinquency rates.
Back in December 2023 the Central Bank of Brazil has published rules for the operation of Pix Automatic and new value limit regulations, with additional updates planned for early 2024. These new rules will define the operational procedures for Pix Automatic and establish new value limit requirements.
Resolution BCB 360 was created to amend the Pix Regulation, originally annexed to Resolution BCB 1 of August 2020. Resolution BCB 362 aims to amend the Pix Penalty Manual, which was annexed to Resolution BCB 177 of December 2021. Additionally, the bank issued Normative Instructions 436 and 437.
The Central Bank has mandated that the offer of Pix Automatic to paying customers must be compulsory for all participants. Those who do not pass the homologation test and fail to make Pix Automatic available by the service launch will be fined daily for up to 60 days. The solution was initially scheduled to launch on 28 October 2024.
Pix Automatic is designed to facilitate recurring payments and will be applicable across various businesses and sectors, including public service concessionaires, colleges, gyms, condominiums, schools, social clubs, streaming services, news portals, subscription clubs, health plans, and financial companies. This flexible and configurable solution aims to streamline recurring payments by allowing automatic periodic debits with prior authorization, eliminating the need for authentication for each transaction.
For businesses, Pix Automatic is expected to enhance efficiency, reduce collection costs, and lower delinquency rates. It operates on the existing Pix infrastructure without requiring bilateral agreements, and the standardized processes set by the monetary authority are intended to facilitate implementation and increase competition.
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