(Montreal) Nuvei has completed the acquisition of Pay2All, a payment institution authorized by the Central Bank of Brazil, which should allow the Montreal company to offer comprehensive payment services as an electronic money issuer in the South American country.
Nuvei announced Monday that it has entered into a definitive agreement to acquire Pay2All Instituição de Pagamento.
The financial technology company called it a “strategic step that will enhance Nuvei’s capabilities in the Brazilian market and strengthen its commitment to the Latin American region.”
As the Montreal company points out in a press release, this “payment institution license” was required to provide transactional services to authorized operators in the newly regulated sports betting and online gaming market in Brazil.
Now, Nuvei will be able to manage e-wallets and betting accounts and participate in all local payment systems in Brazil.
The Brazilian online gaming market has significant growth opportunities, according to the company, which estimates that the sector’s revenues are expected to reach US$1.97 billion in 2024 and show a compound annual growth rate of 15%. It anticipates a market volume of US$4.03 billion by 2029.
The proposed transaction is subject to customary closing conditions, including receipt of key regulatory approvals by the Central Bank of Brazil and local antitrust authorities.
Nuvei President and CEO Philip Fayer spoke of obtaining a payment institution license in Brazil as a top priority and an important step in the global expansion strategy.
“The proposed transaction not only strengthens our presence in Latin America, but also demonstrates our commitment to providing fully localized and modern payment solutions to Brazilian businesses,” he said.
Also this year, Nuvei announced that it was the first global payments company to offer direct acquiring locally in Colombia. It is also implementing a local acquiring service in Mexico.