BRASILIA (Reuters) – Brazil’s central bank said on Monday a new feature of its popular Pix instant payments system designed to automatically pay recurring bills will be launched in June next year instead of October this year as originally planned.
Previously, Brazilian Central Bank Governor Roberto Campos Neto has repeatedly called for the approval of constitutional amendments and giving the institution financial autonomy.
Campos Neto believes that given the current budget situation of the central bank, policymakers may face difficulties in operating Pix.
A Senate committee decided last week to postpone a vote on the fiscal autonomy proposal, which Brazilian President Luiz Inacio Lula da Silva opposed.
The so-called “Pix Auto” feature will allow automatic recurring debits without the need for identity verification for each transaction.
It is expected that Pix will enter the credit card and bank invoice fields as it rapidly emerges in Brazil to replace traditional payment methods.
The new functionality will enable recipients such as utilities, schools, health plans, streaming services, subscription clubs and financial sector companies to reduce billing process costs and reduce delinquency rates, the central bank said in a statement.
