Pay4Fun: "Pix is undoubtedly the dominant means of payment in the betting segment in Brazil"

The regulated online betting market in Brazil celebrated its six-month anniversary in July, a period marked by changes for operators, financial institutions, and users. Among the main impacts of the regulation are new identity verification requirements, an initial drop in transaction volume, and pressure to ensure transparency and security in the industry.

According to Leonardo Baptista, CEO and Co-founder of Pay4Fun, a payments provider authorized by the Central Bank that operates in the online gaming segment, the beginning was difficult, but necessary to consolidate a legal and reliable environment. In an interview with Yogonet, he highlighted that, after the adaptation period, figures have returned to previous levels and growth is expected through 2025.

The executive then addressed the main operational challenges facing the company, the tools adopted for the prevention of money laundering, the role of Pix in transactions, and Pay4Fun's next steps in the industry.

The regulated online betting market in Brazil has been in operation for six months. From the perspective of payment institutions, how do you assess this start? Do you think the country has made good progress, or are there still many challenges ahead?

The beginning was challenging, but as expected. With the regulation, we saw a drop in transaction volume in the first few months, mainly due to the new requirements for users: sending documents, proof of life, and stricter verification processes. This had an impact, especially because the illegal market remained active, offering a less bureaucratic experience. Many bettors migrated to these illegal platforms during this period of adaptation.

However, we are now seeing a consistent recovery, with figures returning to pre-regulation levels and positive growth expectations for this year.

Brazil has taken important steps toward bringing transparency and security to the industry, attracting major international players and legitimizing the market. But challenges remain, particularly in monitoring the illegal market and strengthening collaboration between the Central Bank, the SPA [Secretariat of Prizes and Betting], and payment institutions to ensure effective regulation.

What were the main operational or technological barriers that Pay4Fun encountered in offering specific solutions to the online betting segment?

The main challenge has always been to structure an efficient and secure financial system for a market that previously operated abroad and lacked transparency. Before Pay4Fun, transactions were expensive and complex, consuming up to 20% of revenue in commissions.

Our initial effort was to develop our own technology internally that could meet the demands of the industry, focusing on security, regulatory compliance, and speed.

This model requires, for example, two accounts per operator, one for player funds and another for the bookmaker's resources, in order to ensure clarity and transparency in the financial flow, per the law.

Furthermore, we follow rigorous processes to validate our partners, which sometimes leads us to reject businesses to maintain compliance and avoid risks.        

How does Pay4Fun tackle fraud prevention and money laundering in this industry? Are there any specific tools or partnerships that you are implementing?

From the outset, Pay4Fun has acted in accordance with Central Bank guidelines and industry best practices for compliance. We employ rigorous KYC (Know Your Customer) and KYM (Know Your Merchant) processes, including document verification, facial recognition, analysis of restrictive lists, and validation of the integrity of associated operators.

Our operating model, which maintains segregated environments for players and bookmakers, represents an additional layer of fraud prevention. We have a specialized team that, through user behavior analysis, establishes security parameters, provides ongoing support to merchants, and reinforces our high standards of control.

With digitization, do you think new payment methods (Pix, e-wallets, cryptocurrencies) will emerge and gain traction in the betting sector? What is the company's position on this?

Pix is undoubtedly the dominant and regulated means of payment in the betting segment in Brazil. Since 2021, Pay4Fun has been operating 100% through Pix, which guarantees speed and security in transactions.

As for cryptocurrencies, the regulatory landscape does not yet allow for their safe use in the betting market. Plus, Pix makes sure the industry can track and control transactions.

Our stance is clear: We want to work within the rules, using PIX as our main tool, and making sure everything is transparent, safe, and compliant.

Do you plan to launch any products or features by the end of 2025? If so, could you give us a sneak peek of what's to come? If not, could you mention any upcoming events where Pay4Fun will be presenting its solutions?

We are investing heavily in experience and usability, focusing on improvements and new features within our environment. These new features will be launched on the market soon. We also have plans to expand our activity beyond betting, exploring other segments related to entertainment.

We will also continue to attend strategic events such as SAGSE Paraguay (August 5-7), CGS Recife (August 21-22), SBC Summit Portugal (September 16-18), G2E Las Vegas (October 6-9), and SiGMA Milan (November 11-14).

This agenda strengthens our commitment to diversifying and consolidating our presence in the industry throughout 2025.