The quality of the operation caught the attention of BS2, whose activity in payments has been growing year over year – totaling R$ 232.3 billion (US$39.5bn) in transaction volume in 2024. Last year, the bank completed the integration of Adiq, its acquiring company. The goal was to make its payment offering even more integrated and to achieve greater scale, aligning with the move made with Paag.
The Brazilian market is undergoing a series of regulatory changes, the most recent being the regulation of betting. “Until now, the bank had been indirectly involved in the betting market, processing Pix transactions for payment facilitators. With the new regulatory framework, we see an opportunity to capture more value in this chain by reaching the final link. We found in Paag the ideal partner for this move,” says Juliana Pentagna Guimarães, Executive Director of Corporate Development at BS2.
“We want to positively contribute to the maturity of this market by bringing our knowledge and technical rigor to this segment,” she adds.
For João Fraga, CEO of Paag, receiving investment from a well-established player like BS2 will open even more doors. “Paag has always been a tech company betting on the potential of the regulated market. This partnership with BS2 strengthens our mission to offer not only solid, reliable solutions that meet the demands of this new era, but also innovative ones — that truly transform how betting operators run their business,” Fraga says.
“We're talking about a new level of structure, credit, and technology for those who want to grow with security and leadership.”
Strategy
Since 2023, when it created its Corporate Development division, BS2 has been structuring itself to accelerate its inorganic growth through various capital allocation strategies.
“As part of this strategy, we’ve been looking at major M&A opportunities with the potential to increase revenue and enhance our value proposition for businesses,” says Vinicius Bandeira de Mello, Head of M&A at BS2.
The acquisition of Paag is part of the bank’s active agenda in seeking M&A opportunities that have the potential to take BS2 to the next level.
About BS2
BS2 is a financial ecosystem focused on businesses. With over 30 years in the market and a continuous innovation agenda, the institution combines technological strength with expertise in credit, payments, foreign exchange, and insurance.
Its financial solutions, available through both app and internet banking, are designed to connect to third-party ecosystems via its infratech offering in an As a Service model, either bundled or standalone.
BS2 has been awarded the Pró-Ética seal by Brazil’s Office of the Comptroller General, recognizing its integrity and exemplary performance in preventing money laundering, corruption, and fraud. It is also the first Brazilian financial institution to sign the UN’s pact of zero tolerance to corruption. The bank holds an A.br rating from Moody’s.
About Paag
Paag is a technology company specialized in the iGaming and betting market, offering a complete ecosystem of solutions for operators seeking efficiency, security, and compliance in the regulated market.
Its main focus is payment processing, ensuring fast, secure transactions that meet regulatory requirements. With advanced technology, Paag facilitates user integration, automates financial workflows, and manages risk, giving operators full control over their receivables and payouts.
In addition to payments, the company also offers compliance solutions such as KYC, enabling secure player verification and fraud mitigation. With a robust infrastructure, Paag meets the sector’s needs by providing technology to optimize the financial journey of betting operators.
With over 40 million transactions processed monthly, Paag has established itself as a strategic reference in the industry, driving the evolution of the betting market through innovation, security, and regulatory expertise.
Source: GMB
