One of the main challenges imposed by the regulation is the complete validation of bettors' identities. This process is known as KYC (Know Your Customer). It will be necessary to check documents with photos, CPF (Taxpayer Identification Number) and ID, in addition to ensuring that the player is, in fact, alive. This entire operation can generate high costs and creates a challenge: validating identity without interfering with the user experience.
Paag ID promises to perform this verification efficiently, securely and without interfering with the player's experience. The platform will perform all KYC steps in a single process, making everything easier for bookmakers, as well as offering bettors a faster and more frictionless experience. As the solution centralizes processes, the cost of ensuring compliance is also lower.
By obtaining total control over user data, betting companies will also be responsible for protecting it. The new regulation imposes rules regarding the collection, storage, and use of players' data.
Paag ID operates based on the security and privacy standards established by law, allowing bookmakers to manage their customers' data in accordance with regulatory standards, without relying on third parties.
But the regulatory process does not only ensure the security and rights of players. It also aims to prevent fraud that could cause financial and reputational impact to bookmakers.
Currently, companies lose 1% of all deposits, on average, through scams. Therefore, in an operation that generates 100 million in cash-in per month, there is a loss of R$ 1 million (US$ 178,000) in this period. Practices such as “bonus abuser”, applied by fraudulent players, can harm the visibility and competitiveness of operators.
This is another problem that Paag ID aims to solve. The platform has a robust fraud prevention system, such as mandatory facial validation at the time of cashout and two-factor authentication.
One of the main goals of Paag's solution is also to optimize the user experience. To this end, the product allows players to use the same login at multiple bookmakers, using a single registration. This possibility improves the experience for bettors, who do not need to register again to bet at different bookmakers.
This feature is seen by developers as an important strategic gain so that bookmakers do not drive away potential bettors with interruptions and friction when playing.
“Companies that join Paag ID will substantially reduce their fraud and account theft rates. There will also be a reduction in the costs of the process, and of course, greater protection for people who want to bet, establishing a relationship in which everyone involved benefits,” commented João Fraga, CEO of Paag.
The expectation is that Paag ID will be launched in January 2025, establishing itself as a great investment for bookmakers who want to be successful in the regulated market.
Source: GMB
