Brazil to Launch Pix Installments in September, Challenging Credit Cards

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Brazil’s central bank will introduce a new installment payment feature for its instant payment system Pix in September as it seeks to expand access to higher-value transactions and challenge the dominance of credit cards.

In a statement Thursday, the central bank said the feature — dubbed Pix Parcelado — will allow users to split payments over time while merchants receive the full amount instantly. It’s expected to boost retail usage, particularly among consumers without access to traditional credit lines.

Installment-based payments are deeply woven into Brazilian consumer culture and have traditionally been the stronghold of credit card providers. By integrating this model into Pix, the central bank is poised to disrupt the established market structure.

Launched in 2020, Pix has become Brazil’s most-used payment method, outpacing credit and debit cards. The 24/7 service network is backed by Brazilian Central Bank (BCB) and is already used by some crypto firms such as Bitget and MetaMask as a convenient digital payment method.

The rollout of Pix Parcelado is a further step in its evolution, especially as it targets larger-ticket transactions that historically relied on credit cards.

While the announcement didn’t include specific details about fees or interest rates, the central bank stated that both consumers and businesses will benefit — with customers gaining flexibility and merchants enjoying instant settlement.

Separately, the central bank also revealed plans for a 2026 update that would allow future Pix receivables to be used as collateral for credit. This should help borrowing costs for businesses, especially smaller ones that depend heavily on Pix for revenue.

That feature, however, will require a “more complex infrastructure,” and won’t affect how individuals use Pix in their daily transactions.

Meanwhile, Brazil’s sizable market, boasting a population of nearly 214 million people, has become an attractive destination for cryptocurrency companies. Also expanding operations in the country is Coinbase. Earlier in 2024, the US major exchanges inked partnerships with local payment providers to offers crypto purchases and enable the deposit and withdrawal of funds in the local currency.