Brazil's central bank has announced that a new option for making installment payments through its popular instant payment system Pix will be launched in September. This feature aims to increase the use of Pix for larger retail purchases, particularly benefiting individuals without access to traditional credit options. The introduction of this new installment payment feature is anticipated to challenge the market share of credit cards and further boost the adoption of Pix, which has swiftly become the preferred payment method in Brazil since its debut in 2020.

The practice of paying for purchases in installments is a common and ingrained part of Brazilian consumer behavior, typically associated with credit card usage. The central bank, referring to the upcoming "Pix Parcelado," mentioned that this feature will be accessible to both consumers and merchants. Although recipients will receive the full payment instantly, payers will have the flexibility to spread their payments over time. However, detailed technical information and cost specifics for this new feature have not been disclosed yet.

In addition to the installment payment feature, the central bank plans to launch another capability in 2026 that will leverage future Pix receivables as collateral for credit transactions. This strategic move aims to reduce borrowing costs for businesses, particularly those heavily reliant on Pix. The central bank emphasized that implementing this enhancement will necessitate a more intricate infrastructure and will not impact how individuals utilize Pix for their transactions.