Brazil's Pix Payment System to Process $30 Billion in E-commerce Spending
São Paulo, Brazil - Pix, Brazil's instant online payment system, is projected to handle $30 billion in e-commerce transactions over the next two years, according to a study by financial technology firm Ebanx.
The study highlights the upcoming launch of "Pix Automatico," a feature that will automate payments for recurring bills such as utilities and streaming services. This development is expected to benefit online businesses that rely heavily on subscription-based revenue models.
Launched in late 2020, Pix has become the preferred payment method in Brazil, rapidly surpassing credit and debit cards and reducing cash usage. Currently, it processes over $338 billion in transactions monthly.
The Ebanx report projects that Pix Automatico will drive significant growth for e-commerce, primarily by attracting new customers who previously lacked access to credit or banking services. While credit cards remain a key competitor, Pix Automatico is expected to capture a substantial portion of the market in its initial years.
Pix Automatico also simplifies the process for vendors, who will only need to partner with a single financial institution to handle recurring payments. However, industry experts believe that banks will not face significant threats from this feature, as they offer diversified revenue streams and customer incentives like cashback programs.