Brazil’s national instant payments platform PIX is set to introduce automated, regular payments capabilities later this year, with experts saying it could unlock $30 billion in the e-commerce sector It’s there.
Known as Pix Automatico, this new feature will be released in mid-June 2025. This allows 150 million PIX users to debit accounts on recurring invoices, including monthly payments for services such as streaming and utilities. Currently, such recurring payments can only be made through Brazilian bank debit or third-party fintech services.
Ebanx, a regional fintech company in Latin America, says PIX Automatico will be a game-changer for the already hugely successful platform. The company expects the new feature will process e-commerce payments of more than $30 billion.
PIX processes over $300 billion in digital payments for Brazilians at the time of writing. The service, launched in 2020 by the central bank, has been extremely popular. Brazilians paid 42 billion via PIX in 2024, up 74% year-on-year, according to central bank data. This was 23% higher than the combined credit and debit card payments.
However, in e-commerce, Pix has not yet turned the table to traditional payments. In 2023, credit cards accounted for less than a third of all online commerce payments, while credit cards accounted for more than 50%.
This is likely to change this year with automated payments, experts say. EBANX vice president of product product Eduardo de Abreu told Reuters that PIX eats the market share of credit and debit cards in most market segments, but PIX Automatico’s biggest target is that it has no banks . This demographic is unable to protect credit cards primarily due to low credit ratings, and misses services such as utilities and streaming digital payments.
This new feature also saves merchants millions of dollars on monthly fees. Payment on PIX costs an average trading fee of 0.22%. Meanwhile, Brazil’s debit card fees average at 1%, and credit cards cost up to 2.2%, according to data from the International Bank for Settlement (BIS).
The ubiquitous use of PIX in Brazil could override the promotion of central banks’ digital currency (CBDC). Most countries exploring retail CBDCs aim to increase financial inclusion, but with PIX boasting over 150 million users, the need for Brazilian CBDCs is not too pressing Not there. Banco Central Do Brasil tried to expand CBDC beyond payments. Governor Roberto Campos revealed last October that the central bank was investigating tokenization and integration.
Middle East Fintech Company AFS expands to UAE
In the Middle East, Bahraini Fintech Firm Arab Financial Services (AFS) has secured licenses from the UAE central bank and marked expansion into the first country.
AFS received a Retail Payment Services License – Category II from the UAE Central Bank (CBUAE) this week. Licensing enables digital payment companies to offer “an innovative and secure payment solution tailored to the dynamic financial environment of the UAE.”
“We are excited to launch innovative payment solutions in the UAE, a country renowned for its progressive vision of digital transformation. Our advanced service suite offers convenience, security and financial freedom. By increasing it empowers consumers and businesses alike,” commented Samer Soliman, CEO of AFS.
The company’s expansion to the UAE is supported by a $150 million funding, the company said. AFS has committed to partnering with local fintech, regulators and other industry stakeholders to expand its footprint into the Middle East’s fourth largest economy.
AFS offers digital payment services to millions of users in the Middle East and Africa, and has a huge presence in Bahrain, Egypt, Oman and dozens of other countries. In addition to standalone products, we partner with local banks to provide services such as card processing and sponsorship.
The advancement of AFS into the United Arab Emirates has been a result of an increase in digital payments in the Middle Eastern countries, and has long struggled to move away from cash payments. A recent survey by Visa (NASDAQ: V) found that digital payments have increased significantly over the past year. However, cash still accounts for 23% of all payments last year, with almost half of all cash users attributing habits and wide acceptance. However, for two in three respondents, only 1-2 of the last 10 transactions were made in cash, resulting in a significant reduction in the previous year.
Watch: The future of payments by the Code Poet CTO
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