Pix Automatic in Brazil, what it means for the recurring payments in Latin america
Brazil has been a pioneer in the innovation of digital payments with Pix, the system transfers the snapshot created by the Central Bank. Now, with the release of Pix Automaticthe country gives a new step in the digitization financial: a model of recurring payments without a credit card that promises to transform the way millions of individuals and businesses manage their subscriptions and services.
In this article, we look at what is Pix Automatic, what are its benefits, the challenges, and what it means for the ecosystem of payments in Latin america.
1. What is Pix Automatic?
Pix is an Automatic system evolution Pix that allows users to authorize recurring payments automatic from your bank account. Unlike the automatic debits traditional, no credit card required or intermediaries additional.
Examples of use:
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Subscriptions to digital platforms (streaming, music, software).
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Basic services such as water, energy, or the internet.
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Periodic payments in insurance or credits.
2. Benefits of the model
The impact of Pix Automatic is measured on several fronts:
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Financial inclusion: millions of users that don't have a credit card now, you can access to subscription services.
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Efficiency for businesses: reduction of costs associated with the processing cards.
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Simplicity for users: do not need to update card data or worry about deadlines.
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Confidence: transactions are supported by the Central Bank of Brazil.
It is estimated that in the next two years, the Pix Automatic could move to more of $ 30 billion in recurring transactions.
3. Challenges and risks associated
Despite its advantages, the implementation challenges:
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Security in the authorization: the mechanisms of consent must be clear and auditable.
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Protection of personal data: avoid fraud or charges to be undue.
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Technological infrastructure: the businesses need to adapt their billing systems.
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International standards: each country of Latin america has regulatory frameworks different.
4. What does it mean for Latin america?
Pix Auto opens the conversation about alternative models to the credit card for recurring payments in the region. Countries such as Colombia, Mexico and Chile are already watching with interest its impact.
For companies, this means preparing your payments infrastructure:
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Guarantee compliance with standards-PCI DSS in the management of data.
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Adopt security measures to protect banking credentials.
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To evaluate the integration with fintechs that offer similar models.
Pix Automatic is an innovation that democratizes the access to the recurring payments, and challenges the traditional model based on cards. For Latin america, it represents an opportunity to financial inclusion and modernization of the ecosystem, but also the need to strengthen the security and regulatory compliance.
In IQ Information Quality we accompany banks, fintechs and merchants in the implementation of models of payment safe and compliant with PCI DSS.
Contact us to explore the future of digital payments in your organization.
