Brazil's iGaming market continues to expand, but this growth brings a major challenge that keeps many operators up at night: instability.
Imagine this scenario: a customer finds your platform, is interested in a game, decides to register, and then… the system fails.
The outcome is obvious: the bettor simply won’t wait. If the identity verification process doesn’t work in a few seconds, they abandon the process and move on to the competition.
Every hour of downtime means lost revenue—and the consequences are even worse during key moments.
The high cost of KYC downtime in iGaming
An interruption in the identity verification (KYC) system, especially during peak user acquisition moments, can be catastrophic.
Think of moments like major tournament finals, Black Friday promotions, or even high-traffic evening hours. In such cases, instability becomes a major issue.
Downtime affects not just the operator, but also the bettor, creating a chain reaction of negative impacts:
* For the operator: Revenue is lost due to abandoned registrations and missed bets. Marketing investment is wasted, increasing customer acquisition costs (CAC). There's also the risk of regulatory fines and overloaded support teams, adding operational costs and damaging brand reputation.
*For the bettor: Not being able to play or withdraw causes frustration, pushing users toward competitors. Trust declines, loyalty drops, and in cases of recurring failures, the sense of insecurity grows.
A non-functional KYC system isn’t just a technical glitch—it directly impacts liquidity, user trust, and ultimately, the business's sustainability.
In short, when the problem isn’t traffic, it’s the KYC.
Imagine this: you invest R$10,000 (US$1,800) in a campaign with an influencer. The campaign goes viral. Within minutes, 5,000 users try to register on your platform.
But the KYC system can’t handle it. The queue freezes, the system crashes, the user gives up.
The result? You don’t just lose the R$10,000 (US$1,800) investment. You lose the opportunity to turn those leads into real players.
Even with an optimistic 80% approval rate, that’s 4,000 potential active users.
Now, consider an average first deposit of R$80 (US$14,5). That’s R$320,000 (US$58,300) in gross revenue vanishing due to one technical failure.
And worst of all? That initial frustration damages your brand perception and raises CAC for future campaigns.
All because of a factor many underestimate: true KYC uptime at scale.
The secret to an infrastructure that doesn’t fail
To ensure an iGaming platform performs reliably and never lets users down, it must have a solid foundation, a robust infrastructure designed to handle pressure and operate continuously. After all, a bettor's trust depends on it.
This means having:
*Smart load balancing: A well-built platform can automatically distribute a high volume of verifications per minute. This ensures that even during demand peaks, the load is efficiently managed, avoiding bottlenecks and delays. It’s like having a system that scales its service capacity as the queue grows.
*Proactive monitoring: Alerts should trigger before a failure occurs—not after users start complaining. Dedicated teams must monitor system health in real time, identifying anomalies and taking preventative action to avoid disruptions, ensuring any issues are addressed before they impact the user.
*Automatic failover: If any server experiences an issue, the system should switch to another seamlessly within seconds, without the user even noticing. This automatic failover capability means that even when something goes wrong, the registration and verification process continues smoothly and uninterrupted.
Ensure conversion and trust
Let’s be honest—your KYC system’s uptime is a crucial competitive advantage that separates successful businesses from struggling ones.
Instability is not just a minor inconvenience; it is a direct barrier to acquiring new users and retaining your existing customer base.
Is your platform facing challenges in delivering a seamless and uninterrupted user experience? Don’t let instability eat into your profits. Legitimuz provides a complete solution with the robust infrastructure you need to ensure the performance and conversion your business deserves.
Talk to a specialist today!
Source: Legitimuz
