Learn How Recurring Pix (Pix Automático) Works and Why it Offers Efficiency, Accessibility, and Convenience for Recurrent Payments
Topics:
- What is Recurring Pix?
- How Does Recurring Pix Work?
- The Four Journeys of Authorization: A Deep Dive
- Benefits for Payers and Receivers
- Recurring Pix as the Next Generation of Payments
1. What is Recurring Pix?
Recurring Pix, or “Pix Automático”, is an automated payment feature within the Pix system platform introduced by the Central Bank of Brazil. This new feature enables seamless recurring payments through prior user authorization, ensuring efficiency, transparency, and flexibility. The launch of this new Pix category is expected by June, 16th 2025.
This function is ideal for services that require periodic payments, such as subscriptions, memberships, tuition fees, and other recurring obligations. In fact, the subscription economy is booming, driven largely by Gen Z’s consumption habits. Based on the Central Bank’s official guide on Pix Automatico, we have compiled important information for those interested in understanding how this new feature can benefit both businesses and consumers.
2. How Does Recurring Pix Work?
Recurring Pix was designed to streamline recurring payments, offering a seamless experience for both payers and receivers. This feature automates the process, eliminating the need for manual payment approvals and ensuring consistent and secure transactions. By leveraging the “Pix Automático” functionality, businesses can provide a hassle-free experience to their customers while maintaining complete transparency and control over their payment flows.
The process begins with the receiving PSP creating a recurrence on behalf of the receiver, including details like payer and receiver information, payment schedule, start date, and fixed debit amount (if applicable). This recurrence is sent to the paying PSP through the Central Bank’s infrastructure, where it is stored and marked as “pending confirmation.”
Once the payer reviews and confirms these details via their PSP app, the recurrence is activated, enabling the receiving PSP to send payment instructions to the paying PSP. It’s important to note that all recurrence details remain securely stored in both PSPs, ensuring consistency in subsequent payment instructions. If the payer or receiver cancels the recurrence, it automatically prevents future payment instructions.
In case of the payment request details don’t match the authorized recurrence or if the authorization is canceled, the paying PSP will neither schedule nor process the transaction. This ensures that every transaction adheres to the payer’s pre-approved settings and offers a high level of control and security.
After the payment request is submitted by the receiving PSP, and approved by the paying PSP, verifying that it matches the payer’s authorization, the transaction is scheduled. The payer receives a notification detailing the amount and settlement date. On the scheduled date, the paying PSP processes the transaction through the Central Bank’s system and notifies both the payer and receiver upon successful completion. If the payer or receiver cancels the payment before the settlement date, the scheduled transaction is voided, ensuring that users maintain control over their recurring payments.
Here’s a step-by-step overview of how the system works:
- Payment information: The receiver transmits the recurring payment information to the receiving PSP. The receiving PSP sends the details of the recurring charges to the paying PSP.
- Data Confirmation: The paying PSP confirms the receipt and storage of the recurring payment details, which are still pending authorization.
- Payer Authorization: The paying PSP notifies the payer to confirm the recurring charges. The payer accesses the Pix environment in their PSP app and authorizes the debits based on the provided information.
- Status Update: The paying PSP updates the recurring payment status and informs the receiving PSP to do the same.
- Confirmation: The recurrence is created by the receiving PSP with the status “pending confirmation.” Only after the status is changed to “confirmed by the paying user” can the receiving PSP send payment instructions to the paying PSP.This step-by-step process not only ensures that all parties involved have clarity and security but also paves the way for businesses to foster trust among their customers. By automating recurring payments, Recurring Pix eliminates friction in the payment experience, reduces errors, and enhances operational efficiency.
3. The Four Journeys of “Pix Automático”
Recurring Pix allows different authorization flows to cater to specific business models and user preferences. These journeys optimize the user experience while ensuring seamless integration. Let’s check them out:
- Journey 1: App Notification for Confirmation
The payer is notified via their payment service provider (PSP) app about a pending authorization request. This method is ideal for scenarios where businesses initiate recurring payments without QR Codes. The payer confirms the recurring setup directly within the app, activating future automatic payments.Example: A gym membership where the payer agrees to monthly charges upon receiving an in-app notification.
- Journey 2: QR Code for Recurrence Authorization
In this journey, the payer scans a QR Code provided by the business, which contains only the recurring payment details. After scanning, the payer reviews and authorizes the setup directly in their app.Example: A digital magazine subscription where a user scans a QR Code on the website to authorize recurring monthly payments.
- Journey 3: QR Code for Immediate Payment and Recurrence
This journey combines an immediate one-time payment with the authorization for future recurring charges. The QR Code provided contains both the details for the immediate payment and the recurring setup.Example: A SaaS company charges an initial setup fee alongside monthly subscription payments. The payer scans a QR Code to pay the setup fee and agrees to future charges.
- Journey 4: QR Code for Payment/Scheduled Payment and Recurrence Offer
After paying a bill or scheduling a payment via QR Code, the payer is offered the option to enable Recurring Pix for future payments. This journey ensures that users commit to recurrence only after completing an initial transaction.Example: An electricity company allows customers to pay their first bill manually and then opt into automated recurring payments for subsequent bills.
Each journey provides unique advantages, enabling businesses to adopt the most suitable flow for their payment scenarios. For technical details, refer to the Central Bank’s implementation guide.
4. Benefits for Payers and Receivers
Recurring Pix brings a host of benefits to both payers and receivers, making it a versatile solution for a wide range of financial transactions. By prioritizing user control and offering streamlined processes, “Pix Automático” not only improves payment experiences but also creates opportunities for businesses to optimize their operations. Here’s how Recurring Pix makes a difference for everyone involved.
For Payers:
- Full Transaction Control:
Payers can easily manage, cancel, or modify recurring transactions directly through their PSP’s app.
- Real-Time Notifications:
Instant alerts about upcoming payments and completed transactions improve financial planning.
- Cost Savings:
Transaction fees are typically lower than those of traditional recurring payment methods like credit cards.
- No Need for Manual Actions:
Payments are processed automatically once authorized, saving time and effort.
- Flexibility in Authorization:
Users can set parameters such as maximum transaction amounts and adjust payment schedules to suit their needs.
- Security:
Built on Pix’s robust infrastructure, it ensures safe and fraud-protected transactions.
- Improved Budgeting:
Automatic payments help users avoid missed payments while keeping them on track financially.
- Elimination of Payment Delays:
Payments are processed promptly, reducing the risk of penalties or service interruptions.
For Receivers:
- Predictable Cash Flow:
Automatic payments reduce uncertainty, providing a steady income stream.
- Lower Administrative Costs:
Automated transactions cut down manual processing and reconciliation efforts.
- Accessible:
Smaller businesses can implement subscription or installment models without investing heavily in payment infrastructure.
- Enhanced Customer Retention:
Recurring payments reduce churn by offering a convenient and seamless billing experience.
- Customizable Payment Cycles:
Businesses can set weekly, monthly, or custom intervals, catering to various customer needs.
- Support for Flexible Business Models:
Ideal for industries like utilities, education, fitness, and digital services that rely on subscription payments.
- Minimized Payment Failures:
Automated reminders and instant transactions reduce the risk of missed payments.
- No Dependence on Cards:
Eliminates the reliance on card networks and the risk of expired or lost cards disrupting payments.
Whether you’re managing personal finances or running a business, Recurring Pix offers a seamless, efficient, and cost-effective approach to recurring transactions.
5. Recurring Pix as the Next Generation of Payments
Recurring Pix brings countless opportunities, positioning Brazil as one of the global leaders in payment innovation. With its user-centric design, enhanced security measures, and seamless convenience, Pix Automático is transforming the way recurring payments are handled. As adoption expands, Recurring Pix will empower businesses and individuals alike, setting a high benchmark for automated payment solutions worldwide.
This innovation highlights the strengthening of the Pix system and the growing decline of credit cards in Brazil. With Recurring Pix replicating key advantages like installment payments and tokenization, credit cards risk becoming increasingly obsolete. For merchants, this shift brings significant benefits—lower processing fees and reduced chargeback risks—making Recurring Pix an even more attractive solution for businesses looking to optimize costs and enhance payment efficiency.
PagBrasil is committed to helping businesses integrate this innovative payment solution, ensuring an exceptional shopping experience to the costumers.
