As Brazil’s newly regulated betting market continues to evolve, the impact on payments is becoming increasingly clear. With the introduction of mandatory KYC procedures and bank integration requirements, operators are facing both heightened security standards and operational complexity.
In the middle of this transition is Leonardo Baptista, CEO and co-founder of Pay4Fun, a leading local payments provider helping international operators adapt quickly and compliantly to Brazil’s unique financial landscape.
In this exclusive interview, Baptista discusses the critical role of payments in shaping the regulated betting ecosystem, how Pix has transformed instant transactions in Brazil, and what international operators must understand to succeed. He offers a candid assessment of the early regulatory challenges and explains why payment innovation, user education, and regulatory alignment are essential to ensuring a fair and secure market.
We’ve been in the newly regulated Brazilian market for a few months now – what is your assessment so far from a payments perspective? Were there any differences between expectations and reality?
From a payments perspective, the regulation has brought significant improvements in terms of security and transaction traceability, which is very positive. However, reality has presented notable challenges. The requirement for strict KYC and mandatory bank registration, for example, has increased the complexity for the end user, causing considerable friction in the deposit and withdrawal process.
In practice, this has affected transaction volumes, especially during the initial phase of adaptation to the new rules. Many users are still unaware of or do not understand the importance of these requirements for their own safety, which ends up benefiting unregulated sites that continue to offer simpler payment methods — albeit without consumer protection guarantees.
Moreover, the lack of more integrated coordination between the Secretariat of Prizes and Betting (SPA) and the Central Bank represents a regulatory challenge that can indirectly be exploited by irregular operators. We believe that progress in this institutional dialogue is essential to strengthen the regulated environment and prevent abusive practices.
In other words, the expectation was that payments would become safer and more transparent — and that is happening — but we also expected stronger enforcement to ensure a level playing field among operators. That balance still needs to be achieved so the payment ecosystem can function fully within the regulated environment.
What are the main points operators entering Brazil should consider regarding the Pix payment system?
The main consideration for operators entering Brazil is to deeply understand how Pix works, especially in the context of gaming. The system offers instant and low-cost transactions, but it also demands a high level of security, which is crucial for both operators and players.
Additionally, compliance with local regulations and technological integrations that ensure a smooth, frictionless payment experience are essential. For operators already active internationally, this means adjusting their compliance processes and adapting to the specific characteristics of the Brazilian market, which has a high rate of instant payment adoption.
What do you think about the opening of the regulated market and some of the key aspects of the regulatory framework, including Pix requirements? The framework has its critics — what’s your take?
I believe regulation was a crucial step to ensure a more transparent, safer, and truly sustainable market in Brazil. The regulatory framework is an important advancement, especially in ensuring that operators act legally and in compliance with established rules.
Regarding Pix, the compliance requirements are quite demanding, but they also reflect a pursuit of a more secure and responsible market. Naturally, every regulatory process is accompanied by criticism and necessary adjustments.
However, I see these challenges as opportunities to further strengthen the market, bringing more safety to players and confidence to investors.
How can payment providers and operators balance regulatory compliance with delivering excellent service to players?
Balancing regulatory compliance with high-quality service delivery requires a strategic approach involving advanced technology, well-defined processes, and a strong compliance culture.
For payment providers like Pay4Fun, this means ensuring that all transactions are secure, fast, and compliant with Brazilian regulations, while also investing in platforms that offer an intuitive and frictionless user experience. Transparency and clear communication with users about compliance matters are fundamental to maintaining trust. By integrating efficient payment solutions and ensuring all legal requirements are met, we’re able to deliver excellent service without compromising on security.
Tell us about the Pay4Fun platform and how it supports operators as international players enter the market.
The Pay4Fun platform is designed to meet the specific needs of the Brazilian betting market, offering a payment solution that combines regulatory compliance, security, and a streamlined payment experience. For international operators entering Brazil, our platform offers fast integration with Pix, making it easier to adapt to local requirements.
Additionally, our experience in the Brazilian market allows us to provide full support, both in terms of compliance and in customizing the platform to the specific demands of local users. For international operators, this approach not only speeds up market entry but also ensures a smoother and safer transition to operating under Brazilian legislation.