Nuvei Agrees to Acquire Pay2All in Brazil, Accelerating LatAm Expansion

Nuvei Corporation, a leading payment technology partner, has announced a definitive agreement to acquire Pay2All, a licensed payment institution in Brazil.

On April 18, Brazil’s Ministry of Finance’s Prizes and Betting Secretariat (SPA) published Normative Ordinance No 615 in the Official Gazette of the Union. This ordinance mandates that payment institutions must obtain authorization from the Central Bank of Brazil to operate in the market.

With Pay2All’s Central Bank authorization, Nuvei will be able to offer its services in Brazil, including payment acceptance and betting account management. However, the acquisition remains subject to customary closing conditions, including further regulatory approvals from the Central Bank of Brazil.

Once finalized, Nuvei will be strategically positioned as a payment partner for operators ahead of the expected legal market launch on January 1, 2025.

Nuvei’s Brazilian Deal Boosts LatAm Growth

This agreement with Pay2All is a significant milestone in Nuvei’s Latin American (LatAm) expansion. In February, Nuvei became the first global payments company to offer direct local acquiring in Colombia and is currently launching a local acquiring service in Mexico.

Philip Fayer, Nuvei’s chair and CEO, emphasized the company’s commitment to the region: “The proposed transaction not only strengthens our presence in LatAm but also demonstrates our commitment to providing fully localized and modern payment solutions to businesses in Brazil. We’re excited to offer our full suite of services to help drive growth for the rapidly-growing e-commerce and iGaming operators in this dynamic market.”

Nuvei’s Acquisition Amid Brazil’s M&A Surge

Brazil’s market, while promising, comes with high costs. License fees are BRL30m (£4.6m/€5.4m/$5.9m), alongside technological and security requirements. These costs have led some to question the viability for smaller companies in the market.

Economist Adam Patterson of Redirection International predicts a boom in mergers and acquisitions (M&A) in Brazil’s betting market due to these regulatory costs. Patterson sees great potential for M&A activities in the sports betting sector, driven by substantial licensing fees, technical certifications, and tax obligations.

Brazil Approaching Legal Gambling Market Launch

Brazil is on the brink of launching its legal gambling market. The SPA published the final ordinances of the four-stage rollout set for January 1, 2025. Operators have until August 20 to submit applications to Sigap, Brazil’s betting management system, to ensure processing by the launch date.

Currently, only seven operators have applied, but local experts expect this number to increase significantly with favorable terms for casino games introduced in Normative Ordinance No 1,207. Predictions suggest that 20 to 60 operators will be licensed in time for the market launch.

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