GMB - I want you to talk about the results of Pay4Fun's participation in ICE London 2024, which bids farewell to London.
Leonardo Baptista - It's been bustling! Every year has been super busy, but this year with the whole theme of regulation in Brazil and everything that's happening in the country, it was impressive. As you rightly put it, we're receiving a lot of people. There are still curious ones about the regulation issue, but many operators who already work with us came to talk and seal the deal. And regarding regulation, the great good news we have is that many people will apply for the license and the Brazilian market will be large, and Pay4Fun is here. ICE is very important to us.
It's the beginning of the year, and we'll take a lot of work home. Many new companies are closing deals with us precisely because of the regulation issue. As regulation speaks about Brazilian payment methods authorized by the Central Bank, Pay4Fun is one step ahead, and many people came to seal the deal here in London. In short, we are very happy.
Besides closing deals, since you know the Brazilian market very well, have you become a kind of consultant during ICE?
That's right. I was joking about that with my partner. With 40 years in the market, it's something I know. Fortunately, we have been following everything that has been happening in the Brazilian market, and it's enjoyable. We are writing history, participating in history. I used to be an operator, and now, as a payment method company, being involved in this and traveling to Brasília to talk to the people from the Ministry of Finance is rewarding. So, I gladly accept this "consultant" role. It's very cool.
What lies ahead in terms of regulation for a company like Pay4Fun, which already counts among its clients the main global players?
We are waiting for the regulations. We know there will be between 12 and 14, as stated by José Francisco Manssur on the panel very well moderated by you. One of these regulations will focus on payment methods, and the other on money laundering. We have an advantage, and I say this proudly: we are already authorized by the Central Bank, so we understand that in no way will the Ministry of Finance go against the financial regulator, which is the Central Bank.
I think it will be more of the same regarding regulations on payment methods, and many companies will have to catch up because they operate in the sector irregularly and will have to seek a license from the Central Bank to comply with the regulations. I understand that the regulation will bring good control to the market, and Pay4Fun is ahead.
Speaking of staying ahead, have operators already understood how Pay4Fun serves this regulated market that is emerging?
I think this was the great differential of this ICE for Pay4Fun. As I mentioned, many operators came knocking on our door now that regulation has come out and there is talk of an authorized and regulated market. As they know that an authorized and regulated payment method will be necessary to operate, they are knocking on our door. They have already realized that it will not be easy to operate in the Brazilian market. Many say that the irregular market will continue, but I guarantee that it will not be so. I believe and always like to remind everyone that the Central Bank hit where it wanted to and hit where it didn't want to with PIX.
There's no point in talking about an irregular market when 95% of transactions in Brazil today are made through PIX. The government will be a partner with the compulsory issue of regulated operations in Brazil and will oversee and audit everything. Its main means of cutting off operations is through payment methods, so once again, we have the advantage of being where we are.
The market is not regulated yet, but Brazil already receives money from sports betting, as you are required to buy government bonds every evening, right?
That's right. One thing we make clear to operators is that Pay4Fun does not offer PIX; it offers security. So, one of the obligations you have when audited and regulated by the Central Bank is that the operator's money cannot "sleep" with me. For this reason, I cannot, for example, take the operator's money and disappear. Every day we are required to balance the books and buy government bonds. In other words, the operator's money stays with the government.
Everything is regulated by the Central Bank. We may not have, yet, regulation for the gaming market, but we are highly regulated in the financial sector. The Central Bank is a fabulous institution, and we have already made it clear to the government what it is like to work in this sector. It already knows what it's stepping into.
And it knows it's making money from the gaming sector?
Without a doubt. It was recently reported that R$ 54 billion were transferred abroad by the sports betting and gaming sector. Obviously, we contribute to these numbers, and we believe the market is much larger, especially because Pay4Fun is not the only payment method. So, we understand that the market is still much larger and will grow with regulation. Because more players will come, and many operators who are not yet in the country due to lack of regulation. Now, with regulation coming, for sure, the market will explode even more.
A question to make you sweat. Of these R$ 54 billion, how much went through Pay4Fun?
Oh, if I tell you, I'll lose partners and friends. I can't. I am very proud to say the following: we operate with the giants of the market, such as bet365, Flutter, PokerStars, Betano, and other important players are with Pay4Fun thanks to a lot of work over the last five years and the authorization we have from the Central Bank. What I can say is that we contributed to this volume of R$ 54 billion, there is no doubt.
Source: Exclusive GMB
