Brazil’s reshaping of the Latin American subscription economy

Brazil has quietly built one of the most successful real-time payment systems in the world over the past four years. Launched in late 2020 by the Central Bank of Brazil, Pix enables instant, free payments between individuals and businesses. Today, over two-thirds of the Brazilian population use Pix regularly, with people saying  “Pix me” instead of “pay me back”, and surpassing both credit and debit cards in transaction volume according to the Central Bank.

Pix is now taking a significant step forward in the recurring payments space with the introduction of Pix Automático, a major upgrade that enables automated, pre-approved recurring payments. Building on the success of Pix, this new feature introduces a streamlined experience for subscription-based services and recurring charges. It promises to elevate an already trusted and efficient payment method into a powerful tool for sustained digital commerce, providing a blueprint for other countries in Latin America and beyond to follow. 

An evolving subscription landscape

As Brazil’s economy has modernized, more and more international companies that rely on subscription services have entered the South American country. In fact, subscription box services alone generate over $170 million annually. But until now, recurring payments typically relied on manual processes. With just 40% of Brazilians owning a credit card, subscriptions must be paid manually every month using Pix or Boleto Bancário. 

Pix Automatico is set to reflect the adaptability and success of Pix in a card-scarce environment. It’s a natural next step as a technical evolution that brings automation, simplicity, and reliability to recurring payments, all while building on the strong consumer trust Pix already enjoys. 

Set it and forget it

Pix Automático changes the equation. It allows consumers to authorize recurring debits directly from their existing bank or wallet accounts, eliminating the need for credit cards, repeated QR code scans, or monthly reminders. The process begins with a one-time enrollment, often via QR code or app interface, which serves solely to authorize future charges.

The result is a smoother, more trustworthy experience that remains user-controlled through opt-in and cancellation features. For businesses, the implications are enormous. It offers them a more predictable cash flow, lower churn, and higher customer lifetime value, especially important in a market where flexibility and simplicity are key. 

Now, companies that rely on subscription models can reach Brazil’s large unbanked and underbanked populations—people who were previously excluded from the digital economy due to a lack of access to traditional banking. Neobanks like Nubank (with over 104 million customers across Latin America) and Banco Inter (30 million in Brazil) offer simple, accessible alternatives. Digital wallets such as PicPay and Mercado Pago are also widely used, helping millions manage money and make payments without a traditional bank. For these consumers, Pix Automático doesn’t just improve convenience—it represents inclusion.

Delivering local innovation at scale

Banks and fintechs are also poised to benefit. Beyond media subscriptions and digital content, Pix Automático can power recurring use cases like insurance premiums, utility bills, gym memberships, and even automated savings or micro-investments. The infrastructure opens the door for new financial products that are simple, real-time, and inclusive by design.

There’s growing speculation that Pix Automático could even displace traditional direct debits in Brazil. Unlike legacy debit arrangements, which are slow to set up and can be bank-specific, Pix Automático offers real-time settlement and works across institutions.

Strengthening an Already-Mature System

Pix Automatico isn’t a new alternative form of payment in the Brazilian market, rather a continuation of the country’s bold leadership in digital payments. Pix is already the country’s most used payment method, deeply embedded in the lives of consumers and businesses alike. Pix Automático builds on this maturity, adding functionality that makes recurring payments easier, more consistent, and better aligned with both consumer behavior and business needs.

For companies looking to grow in Brazil, integrating Pix Automático will require collaboration with payment processors, updated user flows, and strong customer education. But the return is clear - stronger conversions, more predictable revenue, and a deeper connection to one of the world’s most innovative digital economies.

Brazil has already proven that game-changing financial innovation can come from central bankers, not just tech giants. Pix Automático is the next chapter in that story, reminding us that the future of fintech may be written not only in code, but also in Portuguese.

For a deeper look at how Pix Automático fits into Brazil’s evolving subscription landscape, we explore these trends in “The Future of Recurring Payments with Pix Automático”, our recent webinar with dLocal’s product team.