Automated payments bring $30B for Brazil’s Pix in e-commerce

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Brazil’s national instant payment platform Pix is set to introduce an automated recurring payment feature later this year, and experts say it could unlock $30 billion in the e-commerce sector.

Known as Pix Automatico, the new feature launches in mid-June 2025. It allows the 150 million Pix users to debit their accounts for recurring bills, which include monthly payments for services such as streaming and utilities. Currently, such recurring payments can only be conducted through bank debits or third-party fintech services in Brazil.

EBANX, a regional fintech firm in Latin America, says Pix Automatico will be a game-changer for the already wildly successful payments platform. The firm projects the new feature will process over $30 billion in e-commerce payments.

Pix processes over $330 billion worth of digital payments for Brazilians at the time of writing. The service, launched in 2020 by the central bank, has become highly popular. According to the central bank’s data, Brazilians made 42 billion payments via Pix in 2024, a 74% increase year-on-year. This was 23% higher than payments made by credit and debit cards combined.

However, in e-commerce, Pix has yet to turn the tables on traditional payments. In 2023, it accounted for less than a third of all payments in online commerce, while credit cards accounted for over 50%.

This is likely to change this year with automated payments, experts say. EBANX vice president of product Eduardo de Abreu told Reuters that while Pix has been eating into the market share of credit and debit cards in most market segments, Pix Automatico’s biggest target will be the unbanked. This demographic cannot secure credit cards mainly due to low credit ratings and misses out on services such as digital payments for utility and streaming.

The new feature will also save merchants millions of dollars in monthly fees. Pix payments cost merchants 0.22% on average in transaction fees; debit card fees in Brazil, on the other hand, average 1%, with credit cards costing merchants up to 2.2%, according to the Bank for International Settlements (BIS) data.

The ubiquitous usage of Pix in Brazil will likely nullify the central bank’s push for a central bank digital currency (CBDC). Most countries exploring retail CBDCs are targeting boosting financial inclusion, but with Pix boasting over 150 million users, Brazil’s need for a CBDC isn’t as pressing. Banco Central do Brasil has sought to expand its CBDC beyond payments, with Governor Roberto Campos Neto revealing last October that the central bank is exploring tokenization and DeFi integration.

Middle Eastern fintech firm AFS expands to UAE

In the Middle East, Bahraini fintech firm Arab Financial Services (AFS) has secured a license from the UAE central bank, marking its first expansion into the country.

AFS received a Retail Payment Services License – Category II from the Central Bank of the UAE (CBUAE) this week. The license allows the digital payments firm to offer “innovative and secure payment solutions tailored to the UAE’s dynamic financial landscape.”

“We are excited to launch our innovative payment solutions in the UAE, a nation renowned for its progressive vision for digital transformation. Our advanced suite of services will empower consumers and businesses alike with enhanced convenience, security, and financial freedom,” commented AFS CEO Samer Soliman.

The company’s expansion into the UAE is backed by $150 million in funding, the firm revealed. AFS pledged to partner with local fintechs, regulators and other industry stakeholders to expand its footprint in the fourth-largest economy in the Middle East.

AFS has been offering its digital payment services to millions of users across the Middle East and Africa, with a significant presence in Bahrain, Egypt, Oman and over a dozen other nations. In addition to its standalone products, it partners with local banks to offer services such as card processing and sponsorship.

AFS’ foray into the UAE comes amid a rise in digital payments in the Middle Eastern nation, which has long struggled to transition from cash payments. A recent study by Visa (NASDAQ: V) found that digital payments have seen a substantial uptick over the past year. However, cash still accounted for 23% of all payments last year, with nearly half of all cash users attributing it to habit and wide acceptance. However, for two in three respondents, only 1-2 of their last 10 transactions were made in cash, a significant reduction year-over-year.

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