I just heard that Brazil has launched Auto Pix — a completely new way of recurring payments. I'm curious to see what Pix is and how it's been upgraded like this.

Actually, Pix has long been the preferred payment method for Brazilians, but now it has an additional format called Auto Pix. Basically, this is an automated transfer of monthly payments from a single transaction. You only need to approve it once, and then the money will be automatically deducted on the scheduled date without any further action.

The Central Bank of Brazil announced that this feature will start operating from November 2024, after several postponements. The idea is that Auto Pix will replace traditional automatic payment methods. It’s cheaper for retail stores to implement because they only need one organization to support Pix.

The operation is also quite simple. When making the first payment, the recipient will set up the transaction with a schedule and amount. You authorize it through your banking app, set a maximum limit if needed, and that’s it. Then, every month, the money is automatically deducted, and both parties are notified within the app. What makes Pix so flexible — you can cancel the authorization at any time or manage specific limits for Auto Pix.

The main benefits are lower operating costs, automatic collection reduces bad debt, and it’s easier to sell to people without bank cards. The Central Bank confirmed that there are no fees for payers, but businesses receiving the money may be charged by their service providers.

Regarding safety, if configured correctly, Auto Pix is quite secure. However, there are still risks of fraud, such as changing QR codes or other scam methods. Luckily, you can dispute through the Special Refund Mechanism — if the error is on the bank’s side, a refund is mandatory. I think this is a pretty good step forward for Brazil’s payment system.