Electronic Payments: Automatic Pix will be available in October 2024, says Central Bank
This Pix modality will operate in a similar way to automatic debits already present in bank accounts. Through this new functionality, users can adjust their accounts to conduct transactions automatically, eliminating the need for manual approval for each operation.
The launch of Pix simplified the online payment method for millions of people - Photo Reproduction/Marcello Casal Jr/Agência Brasil
The Central Bank of Brazil revealed on Thursday (07) that the implementation of a new functionality in the electronic payments system, called "Pix Automatic", will be available from October 28, 2024, promising to further simplify payments financial transactions online.
Automatic Pix appears as a natural evolution of the system, with the aim of simplifying the electronic payment process. With this new functionality, users will be able to configure their accounts to carry out transactions automatically, eliminating the need for manual approval for each operation. According to Ângelo Duarte, head of Department of Competition and Financial Market Structure of the BC, currently, a company needs to establish separate agreements with each financial institution to offer the automatic debit payment option.
In practical terms, Duarte explains that companies sign these agreements with the main banks, leaving customers of smaller institutions without the alternative of automatic payment, forcing them to look for other institutions or resort to lotteries. With the introduction of automatic Pix, the company will no longer need to negotiate individual contracts with each financial institution. It will be enough to establish a single agreement with a bank that offers this modality to companies. This will allow the company to provide the option of automatic payment via Pix to all Pix users, regardless of the bank they have an account with.
Pix and its Revolution in Payments
Since its launch in February 2020, Pix has played a fundamental role in transforming the payments landscape in Brazil. Its innovative proposal for instant transfers, available 24 hours a day, seven days a week, brought unprecedented agility and practicality to consumers and companies.
The Pix modality will work in a similar way to automatic debits already existing in bank accounts, i.e. the user can schedule payments in advance that you already know that you will need to carry out at different companies. Automatic Pix, for example, will be applicable to pay off expenses such as water, electricity, school and university fees, gym memberships, condominium fees and loan installments. Although automatic debit already offers this option, according to the Central Bank's assessment, the automatic Pix functionality has the potential to reach a wider audience.
How will Automatic Pix work?
No automatic Pix system, payment guidelines will always be established by the entity that will receive the funds. It is only up to the individual to decide whether or not they wish to use automatic Pix as a payment method. The procedure unfolds as follows:
The individual expresses to the company their interest in making the payment through automatic Pix;
The company forwards the Pix automatic payment proposal to the customer;
The customer receives a notification to confirm payment authorization via automatic Pix, or the company sends the monthly invoice with the payment alternative via automatic Pix;
The customer pays the monthly bill using a QR code and confirms whether or not she intends to opt-in to automatic payment via Pix.
Benefits for Consumers and Companies
Time saving: Automating payments will provide significant time savings for users, who will no longer need to manually approve each transaction.
Financial control:Setting spending limits and the ability to schedule payments at specific times will allow better financial control for users and companies.
Operational efficiency: Companies that make recurring payments, such as subscriptions and monthly fees, will be able to benefit from the operational efficiency provided by automatic Pix.
Service offer and tariff
The availability of the automatic Pix service will operate differently for individuals and companies. In the case of individuals, banks are obliged to offer this modality to customers. As for companies, banks have the freedom to choose who to offer this product to or not. As for the fee, individuals will not be charged, and for companies that choose to make automatic Pix available, the charge will be determined through direct negotiation between the bank and the financial institution.
