It is due to be fully funded by the government through the Bus Service Improvement Plan.
There are several small hubs being created in North Somerset. There is already a new hub at Weston Hospital.
Councillor Hugh Malyan, cabinet member for highways and transport at North Somerset Council, said: “The new transport hub in Pill is about making everyday journeys better for local people.
“By improving waiting areas, accessibility and connections, we’re helping residents feel more confident using public transport and creating a more welcoming space at the heart of the community.”
The council has worked with Alliance Homes on plans to improve Pill’s precinct, as the company owns it. Footways and a new crossing will go in too, as well as new bollards, which can drop-down on market days.