GMB – What were Pay4Fun’s objectives at SBC Lisbon?
Fabrício Murakami – We’ve had a partnership with SBC for years, with prior contracts already signed to participate in every edition of the event. We’re big fans of SBC’s infrastructure and professionalism. We came here to strengthen our relationships. More than clients, we have friends in the industry, and we attend to reinforce connections, check if everything is in order, talk to everyone, and see where we can help.
At the end of the day, our big differentiator—our internal mantra — is to take the client by the hand, understand what they need. In addition, we came to build new partnerships, sign new contracts, and meet new people, as well as stay connected to the latest developments in the industry.
Speaking of innovation in the iGaming sector, for a payments company it might be difficult, since Brazil itself with Pix has been the big innovation for years. Could anything emerge that would further change financial transactions with betting?
Actually, within Pay4Fun we are constantly making product updates, always looking for a better user experience. This also improves conversion rates, helping our partners, the operators who work with us. It’s a constant pursuit of improvement.
Beyond that, we keep emphasizing the possibility of offering a second method for deposits and withdrawals. Eventually, crypto could be a good alternative. Of course, Pix is instant and a technology that has been in place for years in Brazil, but it still surprises people, especially at the global level—many who aren’t from Brazil are impressed by it.
I think crypto can be a backup to Pix. The Central Bank is working on regulations for crypto, because today in the market it is only accepted as an asset. For transactions, it still needs Central Bank approval, and we are waiting for that. We are already prepared. If this becomes a reality in the future, our platform is ready to integrate this payment method.
Crypto has a transfer process very similar to Pix. You take your Bitcoin or Ethereum and transfer it immediately. Does this help e-commerce in the same way?
Without a doubt, it helps e-commerce. In my view, a large share of today’s e-commerce transactions is still through credit cards. That’s still a strong channel, mainly because it’s viable and allows purchases to be split into 10 or 12 installments. That drives consumption. Pix, aside from Scheduled Pix or Pix Credit, is basically a single, upfront transfer.
So, for e-commerce, credit cards remain very attractive. As for crypto, the convenience we see with Pix could also be achieved through a crypto wallet. Perhaps with some added bureaucracy—buying crypto, converting money into crypto, moving it to a wallet, then transferring it to a betting site or an e-commerce site. It’s one extra step, but still, Pix is well established. And in e-commerce, credit cards remain predominant.
In the case of iGaming, is Pay4Fun ready to also offer a crypto solution?
Not yet, because we are authorized by the Central Bank and await resolutions from our regulator. Once we have clarity and regulation in the crypto market, we will study ways to add it as a payment option for deposits and withdrawals within our platform.
Is the platform already prepared to receive it?
Absolutely. Whether for crypto or any other type of inflow or outflow of funds, we are ready. Once regulations are in place, rules will exist, and we will adapt our platform accordingly.
Speaking of rules, how do you assess these first eight months of the regulated Brazilian market?
We started the year in a complicated way. There were many operational issues, both for operators and providers. Things stabilized within the first quarter. Now we’re seeing exponential growth in our market, with operators competing for market share in a clean and competent way, as well as payment providers. All the rules that the SPA imposed on suppliers and operators are now part of companies’ daily operations. Perhaps by absorbing these rules, the market is rising. We’ve seen this reflected in new players entering and coming to talk to us.
What challenges lie ahead in the regulated Brazilian market?
There are many. The first, perhaps, is fighting the illegal market. We keep stressing this. A large share of the Brazilian market is still in the hands of illegal sites. Regulators are concerned about this, because after all, an operator who pays R$30 million (US$5.6m) and faces fierce competition has to compete against sites with no obligations whatsoever—it’s simply unfair. We see one of the best ways to fight the illegal market is by targeting payment methods.
Recently, the Central Bank issued a regulation for companies using PSTIs, limiting Pix transfers to R$15,000 (US$2,800), which caught the market by surprise. Regarding Pay4Fun, our clients can rest assured—we informed them that we do not use PSTIs, since we are a direct Pix provider. So, we don’t face that kind of restriction. Looking forward, the challenge is to effectively combat illegal sites so that the market can grow in a competitive and healthier environment.
With Pay4Fun’s experience in Brazil’s regulated market, do you believe this enables the company to expand into other newly regulating markets, having already dealt with such a robust system in Brazil?
Absolutely. Each market abroad has its own specificities, so it’s crucial to first engage with local partners who know the country’s culture. That’s how we succeeded in Brazil—adapting the operation and understanding the local financial system, shaping our platform to fit the audience we targeted. We must do the same in other countries.
We’ve already started this process in some Latin American markets, always with local partners, because that makes it much easier to understand what’s viable within the country. Having faced such robust regulations from both the Central Bank and the SPA, much of the groundwork has already been laid. Some adaptations are needed, but again, culture is key — that’s why we rely on local partners.
Which countries will soon see Pay4Fun’s presence?
What I can share is that we’re well advanced in Argentina. Not for iGaming operations, but for other initiatives. We’re in the final phase of testing and certifying certain solutions with a strong partner. Soon, we’ll release this information exclusively to you, sharing details of this new development.
Source: Exclusive GMB
