Brazil’s Central Bank(BC) recently stated that the regulations containing the long-awaited rules for Pix Parcelado are expected to be published in the last week of October.
According to local media outlet InfoMoney, the credit option’s flexibility, which allows payers to divide purchases even if they do not have a credit card, was scheduled to be released in September but has now been postponed.
First regulatory stage to standardise definitions
According to the Central Bank, the initial phase of the legislation would focus on standardising product classifications.
The goal, according to the institution, is to improve the user experience while ensuring standard processes across financial and payment institutions.
While the official Pix Instalments framework is still being developed, the Central Bank indicated that existing private credit and instalment solutions tied to Pix payments may continue to operate.
However, these services must follow existing regulations and avoid any practices that may violate the new standards.
Operational guidelines set for December
A second phase of the regulatory process is to take place in early December, the Central Bank said. In this stage, the institute intends to publish user experience requirements and operational procedures.
The new rules will be for the contracting of credit operations linked to Pix transactions and for paying instalments.
After the regulations are officially published, financial and payment institutions will then have a fixed time frame to transition their systems and processes to align with the new rules.
Pix forum discusses the updated timeline
The decision to postpone Pix Parcelado and implement a revised regulatory calendar was announced at a recent Pix Forum meeting.
The forum is a permanent advisory council formed by the Central Bank that includes approximately 300 individuals from the financial sector and civil society.
Its primary goal is to assist the Central Bank in defining the rules and procedures governing Pix, an immediate payment system that has become an important part of Brazil’s financial infrastructure.
By incorporating a diverse range of stakeholders, the BC hopes to ensure that new features like Pix Instalments are developed with input from various sectors of society.
Strengthening security against fraud
Alongside the Pix Instalments updates, the Central Bank released new security measures for the Pix system.
From October 4, the institution will block Pix keys from any of the participating financial institutions that they state are linked to scams or fraud.
The BC stressed that this was another important development in making Brazil’s most popular instant payment method a safer and more secure process.
A Central Bank aims, by permitting the blocking of dubious keys, to reduce fraud and therefore gain another layer of protection for users.
A gradual rollout of new Pix features
At the same time, the timeline by the Central Bank to release regulations for Pix Parcelado goes hand in hand with the institution’s non-accelerated steps to expand the Pix ecosystem.
Launched in late 2020, Pix has changed Brazil’s payment market, making it more efficient by allowing instant and almost free transfers for millions of users.
By adding an instalment feature, the BC wants to bring the practicality of Pix to the consumer credit space and, as a result, may lead to less dependence on credit cards.
The institution, however, stressed that there should be “strict regulations” to protect credit-linked deals and their transparency.
The Central Bank hopes to balance innovation and caution by rolling out regulations over months, while also keeping the lines of the field open through the Pix Forum.
Stronger security provisions, along with a planned-out regulatory timetable, show that BC remains committed to advancing Pix while stabilising Brazil´s fast-modernising payments environment.
The post Brazil’s central bank delays Pix installments regulation to late October appeared first on Invezz
