Canadian fintech group Nuvei is stepping up its pan-American activity via an acquisition of a Brazilian payments firm, enhancing its position in Latin America’s largest market.
The Montreal-headquartered payments technology company has acquired Pay2All, a local company licensed as a payment institution with the Central Bank of Brazil. This affords Nuvei a much wider reach in Brazil’s extensive payments ecosystem.
Access to PIX, Brazil’s national local instant payments system, is of great significance to payments firms like Nuvei. Launched in 2020, PIX has risen to become the predominant payment method in Brazil, more so than debit and credit cards, with the Central Bank now eyeing up international expansion.
However, even more significant for Nuvei is the forthcoming launch of a nationwide betting market in Brazil, due later this year. Although active across a number of sectors, gaming has been a core industry for Nuvei, with several prominent betting company partners across North America and Europe.
Philip Fayer, Nuvei Chair and CEO, said: “Securing a Payment Institution licence in Brazil has been a top priority and will mark another significant milestone in our global expansion strategy.
“The proposed transaction not only strengthens our presence in LatAm but also demonstrates our commitment to providing fully localised and modern payment solutions to businesses in Brazil.
“We’re excited to offer our full suite of services to help drive growth for the rapidly-growing e-commerce and igaming operators in this dynamic market.”
The full range of services covered by Nuvei’s newly acquired Payment Institution licence are accepting payments, managing e-wallets and betting accounts, as well as participating in the aforementioned PIX system.
Significant for the firm’s igaming ambitions in Brazil, holding a Payment Institution Licence is required to provide payments services to betting and gaming operators. Much has been made of the opportunities Brazil’s betting market will offer, set to be one of the biggest in the world.
Opportunities of course are present for betting firms, both local and international, as well as sports clubs and associations which can benefit from sponsorship revenue and corporate tax-funded government support.
Opportunities are also present for payments firms, which will play a crucial role by processing the vast volumes in betting transactions expected from the new market. Nuvei has cited projections of Brazil igaming revenue reaching US$1.97bn by 2024, with an annual growth rate of 15.39%.
