Payment Methods for Gambling in Brazil

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This report examines the rapidly evolving online gambling sector in Brazil, focusing on the integration and impact of various payment methods.

Previously, we explored payment innovations in India and Asia in general, as well as their direct influence on online gambling. Now, we shift our attention to Brazil, the largest South American market, to understand how payment methods are shaping the gambling industry.

At the foundation of this research effort lies a comprehensive survey of user preferences and perceptions of security and practicality of popular payment methods used for online gambling in Brazil. The results highlight a dynamic iGaming scene and emphasize the growing significance of efficient and user-friendly transactions in the entire Latin American macro-region.

Emerging Trends in Brazil’s Payment Method Landscape

Our examination of Brazil’s payment sector reveals a clear preference for native over global payment solutions. Key trends exposed in our study include:

• PIX is the fastest-growing payment method, with a 97% year-on-year growth in 2022;
• In terms of overall digital commerce, Brazil already leads in Latin America, and is projected to grow annually by 20% through 2025;
• Cross-border sales provide the biggest boost, with a 39% year-on-year increase in 2022;
• The mobile vs. desktop breakdown shows a significant further shift towards mobile purchases (69%) compared to desktop (31%).
• Local preferences are key to mastering the market – above any other payment methods, Brazilians favor domestic credit cards (45%) and PIX (23%) for online purchases.

These trends underscore the importance of understanding user behavior in digital payments, extending beyond the realm of online gambling. Investing in native solution integration has become indispensable for both local and global companies providing digital services in Brazil.

Our Survey Insights into Online Gambling Payments

We carried out a field survey, with 654 adult respondents, which focused on the efficiency and user experience (UX) of payment methods in gambling services. This study outcome also explores the broader spectrum (beyond iGaming) of online transaction experiences and various payment methods that are popular in Brazil.

Preferred payment methods in Brazilian online gambling

The most important feedback we received was on the players’ preferred methods of carrying out online transactions.

• PIX dominates the scene, with 81% preference among surveyed gamers;
• Bank Cards – e.g., Visa and Mastercard – are chosen by 46% of players;
• Boleto is still preferred by 14% of users, despite its particular means of clearance (see below);
• Cryptocurrencies were opted by 8%;
• eWallets also represent a credible choice for digital entertainment enthusiasts, recognized by 6%. Pay4Fun was given as an exemplary option, yet that category includes other brands of payment services like AstroPay, PayPal, and Skrill

Further down, we will compare these findings with the current market shares of the payment means as reported by local financial sources and Brazilian regulators.

Online transaction confidence and perception of security

Since online gambling requires making (almost) exclusively payments over the internet, we also asked our respondent’s pool how confident they felt about making those. Not surprisingly, 80% of users felt very confident or confident enough to make gambling transactions.

Confidence levels are also tied closely to the perceptions of security that the various popular payment methods convey to consumers.

Answers showed that, yet again, PIX is rated highly secure by 82% of respondents. It is followed by bank cards (72% for secure and very secure, combined) and boleto (67%). eWallets and cryptocurrencies show moderate trust levels, with the biggest shares of respondents voting them “reasonably” secure (44% and 36% respectively).

As an alternative way of analyzing the above ratings, we calculated the weighted average of the scores assigned to the examined payment means. Thus, the perceived security levels for PIX showed a score of 4.17 out of a maximum possible 5.0.

Bank cards were rated on average 3.91, boleto stood at 3.82, while eWallets (3.02) and cryptocurrencies (2.98) received considerably lower votes.

Popular Payment Methods’ User experience

The survey findings were also unequivocal about the ease of use assigned to the above payment methods. PIX stands out, once again, with 93% finding it practical. The weighted average response for its ease of use stood at 4.63 out of 5.

Bank cards also maintain a strong position, with 84% rating them as easy to use (and a 4.2 weighted rating). Boleto and eWallets show mixed responses in terms of convenience, picking up respectively ratings of 3.28 and 3.05. Cryptocurrencies indicate a marked need for improvement in user experience (2.85 out of 5), possibly reflecting the early stage of adoption of virtual currency in general.

Tracking the Growth of Digital Payments in Brazil

In the past decade, digital payment methods in Brazil have seen remarkable growth, becoming integral to the iGaming industry as well. Their evolution was fueled by expansive crediting policies since 2014 and has significantly impacted all consumption segments and economic activities. Below, we provide a brief chronicle of how digital payments became the backbone of Brazilian economic exchange.

Timeline of Digital Payment Adoption

1. Card Usage Surge – Central Bank of Brazil (CBB) data reveals that from 2010 to 2019, credit card usage rose from 164,691 to 222,498, and debit cards from 227,784 to 348,808. POS terminal installations in commerce more than tripled – from 3,014 to 10,519 – marking a shift away from bank checks in particular.
2. Banking and Digital Payments – Thus, the increase in bank account ownership spurred the growth of electronic payments, especially in online retail.
3. E-Commerce Influence – The rise of e-commerce led to the prominence and diversification of digital payments. Credit cards, the top choice for digital payments a decade ago, saw a decline in face-to-face transactions from 94% in 2010 to 76% in 2019, indicating the growth in alternative payment channels.
4. Consumer Trends – As a result, the convenience and immediacy of transaction processing made credit cards a preferred choice in online shopping, with e-consumers in Brazil growing from 18.9 million (2014) to 41 million (2020).
5. Recent Market Dynamics – Consequent regulatory efforts to enhance competitiveness and transparency have further shaped the digital payments landscape. Brazil has seen quite a few new entrants since 2020, with fintech providers playing a pivotal role.

Brazil’s position in South American e-commerce

Today, Brazil stands as a leader in South American e-commerce, alongside Argentina, Chile, and Colombia. The domestic market sees consistently high digital transaction levels among adults (online consumption at 90% and financial account usage at 96%).

Future projections (2023-2026) anticipate robust growth in almost all online transaction methods, including bank transfers (38% CAGR), Buy Now Pay Later (BNPL, 35%), debit cards (30%), PIX (26%), and digital wallets (20%).

It should be noted, however, that these figures describe the overall evolution of digital finances in Brazil. We provide this overview as context to the trends affecting online gambling transactions and payment methods.

Ask the Experts! Clarifying Digital Transaction Terminology

A quick outline of the major stakeholders in the digital transactions’ segment and the technical solutions they employ:

Payment Method – A customer’s tangible payment choice, with bank cards (e.g., Visa, MasterCard, American Express), digital wallets (e.g., PayPal), mobile payments (e.g., Apple Pay), cryptocurrencies (Bitcoin) or e-banking transactions among the most popular examples.

Payment Service Provider (PSP) – These are transaction facilitators (e.g., Stripe or Payoneer) that enable merchants to accept diverse payment methods through their channel. Put simply, PSPs offer the technology for processing transactions.

Payment Gateway – The digital version of a physical payment channel (e.g., POS terminal), which processes payment information. Popular gateway examples include PayPal or Braintree.

Payment Channel – The medium of payment, ranging from mobile apps to eCommerce websites (an online alternative to in-store payments, including contactless).

In summary, the payment method is the end-user’s transaction choice; The PSPs provide the very method and process the payment; The payment gateway securely completes the transaction; The payment channel is the access point to the payment system.

Regional Payment Preferences and Fintech Readiness

Brazil’s pioneering role in country-specific payment methods, especially instant payment models, reflects a regional trend. On one hand, account-to-account (A2A) methods are gaining popularity due to fee-free transactions for consumers and lower costs for businesses. On the other hand, the immediate and secure processing of these transactions reduces fraud risk and increases customer and merchant satisfaction.

Then again, these developments align with a global movement towards efficient, secure and market-specific payment methods, as seen in systems like UPI in India and PayNow in Singapore. Brazil’s rapid adoption and usage of such methods, however, surpass its counterparts and showcase a strong preference for payment solutions which see the trustworthiness of the traditional financial system meet the innovative features and user-friendliness of modern fintech tools and platforms.

What is more, these solutions allow us to consider Brazil’s technological readiness and consumer market ability to adopt and efficiently utilize new payment methods.

Native payment methods are turning the table

Data from Payment Service Providers (PSPs) that focus on emerging markets reveals the most significant trends in payment preferences:

• A rise in alternative payment methods (APMs) – APMs are gaining traction in Latin America in particular, as they account for 39% of digital commerce at this point, up by 8% in two years.
• A declining bank card usage – Credit and debit cards are still prevalent but their combined share has dropped from 55% in 2020 to 51% in 2022. Other “traditional” payment methods are also decreasing – notably, the voucher-based boleto clearance system has seen a drop in online purchase shares from 16% to 8% over the same period of time.
• The factors behind the growth of APMs – Novel payment solutions are flourishing due to low credit card penetration in Latin America (estimated at a macro-region average of 28%), combined with a surge in bank account ownership from 39% to 73% in the past decade. The pandemic’s impact on digital commerce since 2020 has only amplified the need for diverse payment solutions.

Technological and consumer shifts in payment preferences

The factors listed above lead to a logical conclusion – the shift towards contactless and digital payments we are seeing in Brazil required both certain levels of technological advancement and a change in consumer mindset.

A young and tech-savvy nation is not expected to face challenges with technological adoption. And what it experienced during the period of physical isolation (2020-2023) was a consistent shift towards digital payments. In fact, Brazilian consumers were emphatically reliant on in-person purchases and conventional payment methods but in a matter of a couple of years, they began embracing technologies like PIX, NFC, and QR code payments.

Gambling Payment method preferences emphasize the rise of PIX and eWallets

Our survey indicates that PIX is not only a popular payment method for online gambling transactions but it also enjoys high levels of consumer loyalty.

Nearly half of the respondents use PIX always (47%) for gambling transactions, while 34% use it often. PIX’s practicality, ease, and security are repeatedly highlighted by respondents.

Below, we present the market evolution and factors which led to the explosion of PIX, particularly in real-money gaming communities.

Uniquely Brazilian Payment Method

Brazil’s payment landscape features three distinct solutions, diverging from typical card circuits and eWallets found globally.

Boleto, a Brazilian staple

Boleto is a purely Brazilian innovation. It has been a popular payment method since its inception in the 1980s. Initially used for utility bills, it became a cornerstone of Brazil’s payment system by 1993. Boleto is a “proforma invoice”, a ticket which can be settled via payments in cash, ATMs, online channels and various agents. The boleto system is managed by Febraban, the Brazilian Federation of Banks.

Elo is tailored for Brazil

Founded in 2011 by several major Brazilian banks, Elo is a card circuit that operates exclusively in Brazil and processes transactions in Brazilian real. With over 120 million cards issued, Elo is the third-largest card circuit in Brazil. It has been integrated globally with the Discover/Diners Club network since 2016.

PIX has revolutionized instant payments

PIX is a payment platform created by the Brazilian Central Bank and launched in November 2020, currently linked to over 700 financial institutions. It brought a significant shift in payment means and changed consumer preferences, as it offers a quick (practically instant) execution of payments and transfers. Its speed and efficient integration are behind the widespread adoption it already enjoys among gaming communities around the nation.

The Most Popular Payment Methods in Brazilian Gambling

Because of its nature and suitability for micro-transactions, as well as its popularity as a modern and user-friendly solution, PIX has risen to become the market leader in Brazil’s iGaming sector. In an economic segment with annual revenues of roughly USD 10 billion as of 2023, it has already surpassed card payments.

According to PSP data, PIX is already the undisputed preferred payment method for online bettors in Brazil, with 90% favoring it for transactions. This trend reflects PIX’s growing influence in every economic segment. Still, iGamers seem to have an extra penchant for this particular payment method.

Notable financial outlets emphasize the fact that in merely two years PIX transactions in iGaming have risen to 28.5 billion on an annual basis, establishing the platform as the dominant solution in real-money gaming. PIX is practically accepted by all operators and gaming services active in Brazil.

Various digital wallets are accepted by approximately 80% of gambling websites for both payments (deposits) and cash-outs (withdrawals). While credit and debit card usage is declining in iGaming, major providers like Visa, Mastercard, and Elo are still commonly accepted.

Boleto Bancário is welcome at around 40% of online gambling sites, still considered a trustworthy (albeit old-fashioned) payment method in Brazil.

Are cryptocurrencies popular for gambling?

Despite the buzz around cryptocurrencies, they remain a niche payment choice in gambling. Both our survey and third-party financial reports show that only a small percentage of gamers frequently use cryptocurrencies for gambling transactions.

This contrasts with the high ownership and potential use of cryptocurrencies by millennials, a key demographic in the gambling market. However, certain anti-money-laundering protocols of major iGaming operators, combined with a potentially contrasting purpose of crypto investments amidst a surging market, add up to an underwhelming share of virtual currency payments among real-money gamers.

Rising to Dominance in Digital Transactions

According to the Central Bank of Brazil, PIX has rapidly become a leading payment method, servicing 36% of all transactions since its launch barely 3 years ago. It follows closely behind bank card payments which account for 41% of all transactions.

N.B.: TED (Transferência Eletrônica Disponível) is a real-time bank transfer. DOC (Documento de Ordem de Crédito) and TEC (Transferência Especial de Crédito) are overnight bank transfers, limited to R$5000.

We can also see, however, that bank transfers still move much greater overall amounts. While PIX posts a notable rise in total volumes as well, it is more popular for smaller amounts and everyday spending needs.

However, the significance of the rise of PIX is possibly illustrated best by its growth in percentage share of all transactions (sorted by payment method) in a matter of less than 3 years – from 0% to 39%.

Consumer Preferences and Behavior in Real Money Gaming Payments

Understanding the players’ mindset can provide us with yet another valuable perspective on the payments’ landscape evolution. As a rule of thumb, a long-lasting trait of the average Brazilian consumer is their preference for installment payments. The model is also known as Buy Now, Pay Later (BNPL) and is found in many countries regardless of their economic development levels.

In Brazil, however, the notable popularity of various credit plans has been a cornerstone of almost all commercial segments, reflecting a unique aspect of local consumer behavior.

Factors influencing payment method selection in online gambling

Our questionnaire also explored the importance of various factors that lead to choosing a particular payment method for online gambling. Rated on a scale from 1 (least important) to 5 (most important), we saw the following ranking of influencing factors:

Security is a paramount concern, with 74% of respondents rating it as the most important feature, putting the emphasis on secure financial transactions.

Speed is decisive for nearly half of our respondents. 47% value transaction speed highly (and 42% put it above all), indicating a marked preference for quick payment processing.

Convenience and practicality are also rated highly, with 48% considering them important. The perception of having a suitable and useful payment solution highlights the demand for user-friendly payment methods.

Transaction fees remain a significant factor, if and wherever imposed. A majority mark them as important (42%) or most important (38%), showing consistent cost-consciousness among users.

Technological integration is appreciated by at least half of all responding gamers, while around a third (31%) put it on top. Anonymity is still a pillar for a considerable number of gamers (29%), while 36% value privacy as important enough but not decisive.

New Consumer Paradigm Seen in Digital Gambling Payments

Our survey confirmed the expected shift towards new payment methods in online gaming. We asked our respondents’ pool about payment means tried in the past year for the first time, in the context of real-money gaming transactions.

PIX was indicated by 66% of respondents, supporting earlier findings about its growing dominance in the market. Bank cards were selected by 31%, still a considerable share for an established method; this is, on the other hand, an indication of the growing importance of online games which have been expanding their presence among Brazilian adults.

Boleto was chosen by 15%, again despite not being a new channel on the market. eWallets like Pay4Fun were first tried by 8% in the past year, while cryptocurrencies were given a chance by 10%.

These figures reflect the broader trend in Latin America towards diversification of payment options. The factors pointed out above – convenience, price, usability, and user experience – remain key to adoption chances and shifting market shares.

The Fastest-Growing Online Payment Methods

All figures point to the fact that digital wallets and account-based transfers (like PIX) have seen the most significant growth in recent years. Projections see PIX continue growing at an average 33% across Latin America, reaching the total regional market size of $121 billion by 2025. 

The holders of digital wallets, on the other hand, are those most likely to explore various payment alternatives. eWallets are also expected to grow by 20% annually for the next couple of years, representing a significant portion of the digital payment market in Brazil and LatAm in general.

The Critical Role of Efficient Withdrawal Systems in Online Gambling

Our own survey highlights the importance of withdrawal efficiency in online gambling platforms. Responses show that withdrawal speed is the defining factor in a positive transaction experience related to gambling – 43% of players consider the speed of withdrawals crucial in their decision to play on a specific platform. The weighted average for transaction speed importance is 3.84 (on a scale from 1 to 5), ranking second after transaction security (4.64).

Those who have experienced withdrawal issues are 26% of all respondents. Among the common payout problems, we see the unavailability of a preferred payment method and technical errors as the biggest challenges.

In this context, it is crucial to point out that the majority of consumers (64%) are likely to abandon an online purchase if their preferred payment method is not available.

As already seen earlier, the ease of use and the willingness to try new payment methods can drive the adoption of an alternative. However, as bank cards and PIX remain the top choices across all demographics, retailers and gambling operators simply cannot afford to reject them or have a sub-optimal integration for these popular payment methods.

To verify the impact of such a mindset, we can use secondary sources of online search demand. And indeed, according to data from Mangools.com, search volumes from Brazil for the long-tail query “cassino com saque imediato” (Portuguese for “instant withdrawal casino”) have risen over 2.5 times compared to levels at the start of 2023.

Once again, these insights underscore the importance of swift and reliable withdrawal systems in enhancing UX and satisfaction levels in the iGaming industry.

Impact of Mobile Technology and Internet Connectivity on Online Gambling Payments

The online gambling market in Brazil is significantly influenced by several tech-related factors. Two of them have an impact on payment transactions as well – the (dominant) use of mobile devices and the vital role of internet connectivity in gambling decisions.

Our survey underscores this trend, revealing that 76% of Brazilian gamers mostly use cell phones or tablets for online transactions, emphasizing the convenience of mobile devices.

Meanwhile, a smaller segment (12%) still relies on computers, either due to personal preferences for traditional setups or specific gaming requirements that benefit from larger screens and more robust hardware. Yet another 12% exhibit flexibility, showing no strong preference between mobile devices and computers.

The mobile-centric orientation of users is a mainstay of today’s gambling industry. This consumption model stresses the importance of having a finely tuned mobile gaming site.

The rise of QR Code payments and the adoption of PIX in major retailers further illustrate this shift toward digitized financial processes. Additionally, the emergence of digital banks since 2017 has appealed to a digitally native generation, reflecting a broader trend towards simplified digital financial services.

A 2023 survey by the Getulio Vargas Foundation indicated the high levels of internet and technology penetration in Brazil, with an average of 2.2 devices per inhabitant. This digital readiness, coupled with the pandemic’s push towards digital platforms, has fostered the development of diverse digital payment methods, crucial for industries like online gambling.

On the other hand, the quality of mobile internet also acts as a deciding factor in delivering and experiencing paid gaming services. The survey turns the spotlight on the impact of mobile connectivity on the very decision to play:

– 15% of participants are unaffected by internet quality, suggesting consistent access to stable connectivity or a non-reliance on mobile internet.

– 19% rarely find internet quality impacting their gaming, indicating either a lower priority for mobile gaming or satisfactory internet conditions.

– 36% sometimes consider internet quality, reflecting its occasional influence based on location and activity.

– 18% frequently find their gaming choices influenced by mobile internet quality.

– 12% always consider internet connectivity crucial in their gaming decisions.

This data highlights the need for robust mobile internet infrastructure to support online gamers, with a significant portion considering it vital for their gaming and transactional activities.

Despite such sporadic limitations, the transition to mobile payments in Brazil, particularly among younger demographics, is evident. From 2011 to 2021, traditional payment methods like cheque transactions declined significantly, while digital methods like debit card operations and PIX saw substantial growth. According to a CDNL study, 10% of Brazilians now prefer smartphones for everyday payments, a trend more pronounced among 16 to 29-year-olds.

Government Regulations and Policies

Our study also reveals varied levels of awareness regarding iGaming laws and their ongoing evolution.

• 19% of respondents have high familiarity with gaming-related legal aspects;
• 33% have only a passing acquaintance with regulations;
• Another 33% are neither familiar nor unfamiliar, indicating a knowledge gap.
• 15% express outright unfamiliarity.

The wide spectrum of relevant answers suggests a need for increased accessibility and education about gambling regulations.

The University of Sao Paulo’s topical analysis provides structured insights into the Brazilian government’s digital transaction initiatives. These include a comprehensive regulatory framework, the CBB’s crucial role in monitoring digital transactions, legal requirements for Payment Service Providers, and the implementation of the PIX payment system.

The report also highlights the impact of tax burdens on digital transactions and the existing incentives for adopting digital payment methods.

Limitations and challenges to native payment solutions

The rise of localized solutions in Brazil still faces several challenges:

• Technical Challenges – Interoperability issues, cybersecurity risks, and inadequate infrastructure, particularly in remote areas.
• Legislative and Regulatory Gaps – The need for updated regulations, enhanced consumer protection, and standardized compliance for new market entrants.
• Objective Challenges – Integrating the unbanked, raising digital payment awareness, and navigating a competitive market.
• Economic Factors – The impact of taxes and fees on payment affordability and the influence of economic stability on consumer adoption.
• Technological Advancements – The necessity to adapt to rapid technological changes in the digital payment sector.

The seemingly unstoppable rise of PIX as a systematic solution acts as a powerful enabler for end-user transactions, even without internet accessibility, as often reported by major Brazilian media outlets. Such tools benefit areas with limited connectivity, enhancing financial inclusivity and potentially revolutionizing online gambling transactions in less connected regions.

Why PIX Is a Pillar of Digital Consumption in Brazil

Despite being a relatively recent addition to Brazil’s financial landscape, PIX has already transformed the digital payments scene, particularly among younger generations. This user-friendly and instantaneous payment system has had nothing short of a revolutionary impact.

It has aligned perfectly with the digital lifestyles of today’s consumers, enabling quick and effortless transactions. Its effectiveness is particularly notable in online gambling, where it facilitates seamless spending and microtransactions.

A Growing Share in e-Commerce

Market intelligence indicates that PIX is rapidly becoming the most disruptive payment method in Latin America. In Brazil alone, PIX is projected to handle 29% of e-commerce retail sales in 2023.

While credit cards continue to dominate with a 48% share in Latin America, their dominance is waning in favor of alternative methods like PIX, deemed the biggest game changer in a decade.

Extensive Reach and Usage of PIX

Data from the CBB reveals more on PIX’s impressive reach – by early 2023, it already accounted for 35% of total transactions in Brazil.

Over 551 million PIX keys have been generated in just over 2 years, impacting 77% of the adult population, or about 71.5 million people. Furthermore, 67% of companies with bank accounts in Brazil have already adopted PIX.

One particular statistic points to its suitability for everyday transactions and, in our case, digital entertainment payments. The average value of transactions via PIX, from its launch until December 2022, reveals that nearly 61% of them were under BRL 100 (less than EUR 19).

Social impact of PIX payment method

Academic reports and the CBB highlight the role of PIX in increasing financial inclusion.

As an instant, 24/7 transaction system free of cost for individuals, PIX has become a vital tool for previously unbanked segments of the population, enabling them to participate in digital financial activities.

The system has no minimum transaction requirements and adjustable maximum limits, which also contribute to its widespread accessibility.

Integration into Open Banking

“Open banking” is understood as a series of financial service standards which involve the sharing of financial data through applications (APIs). It is seen as a key step in creating a more competitive and efficient financial market. The integration of PIX into such a paradigm would provide users with greater control over their financial data and will facilitate the development of innovative services.

The introduction of PIX as a mainstream shared solution for hundreds of financial institutions in Brazil (and Latin America) has spurred traditional banks to innovate. It has led them to improve customer services and deliver a more dynamic and transparent financial environment.

PIX’s influence on fintech and card expansion

Market studies also emphasize the role of PIX in the growth of fintech and card usage in Brazil. It has acted as a flagship user-friendly solution, boosting further digitization efforts across various Brazilian economic sectors.

Some analysts even foresee the potential end of traditional financial models, despite the presence of significant social segments without access to digital payments.

PIX as a national financial stability milestone

The CBB already considers PIX a significant milestone in national financial stability. Unlike traditional transfers or payments, PIX requires only a PIX key or QR code, operates round-the-clock, and is more cost-effective due to fewer intermediaries. It ensures user authentication, transaction traceability, secure information traffic, and employs specific operational rules (mandated by the CBB) to mitigate fraud risks.

Profile of Respondents

We had a diverse and engaged audience of respondents, with varied preferences and backgrounds. They were almost evenly split between males (51%) and females (49%), while the largest age cohort was the 25-to-40, confirming the anticipated young and active demographic in the gambling sector.

Some predispositions of our survey respondents reveal their gambling habits:

– A strong preference for traditional games of chance, with 66% favoring the lottery, scratch cards (29%) and bingo (26%).

– Nearly half (46%) participate in sports betting, stressing the sector’s growth.

– Casino games (26%) like slots, table games, and card games are also quite popular, with about a quarter of respondents engaged in each sub-segment.

– A notable 20% still play the traditional, albeit illegal, jogo do bicho.

Other responses outlined key player characteristics. Most are well-educated, with 90% having completed high school or higher education.

The overwhelming majority (72%) are employed – 48% with formal labor contracts, with others being entrepreneurs (9%) or working informally (15%).

The survey’s demographic profile underscores the importance of diverse and accessible payment options in online gambling, catering to a range of economic realities and lifestyle needs. This diversity in gaming preferences and professional backgrounds highlights the dynamic nature of Brazil’s online gaming community.

Predicted Trends in Gambling Payments

The evolution of digital payments is a subject of great interest to a wide range of economic subjects, especially at its intersection with the iGaming industry. The PwC report “Payments in 2025” outlines certain key trends foreseen in this domain in the short run. These include:

• A sustained shift towards digital payment methods, preferably instant;
• More regulatory changes, adapting current legislation to emerging technologies.
• Increased focus on innovation and collaboration between traditional financial institutions and fintech companies.

These trends indicate a landscape where consumer demands for faster, more secure, and more convenient payment methods will significantly influence the industry’s direction. Nevertheless, leading consultancies expect to see security and privacy to remain top priorities.

Brazil With a Leading Role in Advancing Digital Payments

Brazil is also expected to gain more prominence at the forefront of innovative payment solutions. Google has chosen Brazil as the first country to test a new payment system that allows contactless payments through QR Code reading.

This development is significant not only in terms of technological advancement but also in terms of consumer convenience, including offering payment options that admit installments. More importantly, this pioneering move by Google in Brazil underscores the country’s position as a leader in embracing and implementing novel payment technologies.

Takeaways for iGaming Stakeholders Entering or Operating in Brazil

1. Embrace Local Payment Methods – Companies should prioritize integrating local payment solutions like PIX and Boleto Bancário. PIX, in particular, has emerged as a dominant payment method due to its ease of use, speed, and security.
2. Focus on Mobile Optimization – With a significant shift towards mobile transactions in Brazil, iGaming platforms need to ensure their services are fully optimized for mobile devices.
3. Understand Consumer Preferences – Companies should recognize the importance of installment payments in Brazil. Offering flexible payment options that cater to this preference can enhance consumer attraction and retention.
4. Adapt to Technological Advancements – Keep abreast of the latest payment technologies and trends, such as contactless payments and digital wallets, to stay competitive.
5. Ensure Transaction Security – Given the high concern for security in online transactions, iGaming companies must invest in robust security measures to build trust and confidence among users.
6. Educate Consumers – As there is a varied level of understanding regarding iGaming laws and digital payments among Brazilians, companies should invest in educational initiatives to inform users about the safety and legality of online gaming.
7. Prepare for Regulatory Changes – Stay informed and ready to adapt to ongoing regulatory changes in the digital payment landscape, to ensure compliance and smooth operations.

Further Market Shifts Still Looking Likely

The current landscape in Brazil shows a strong inclination towards digital and instant payment methods, driven by technological advancements and changing consumer expectations. The rise of PIX and the growing emphasis on mobile transactions are key indicators of this trend.

iGaming companies venturing into the Brazilian market need to be agile, consumer-centric, and technologically adept, aligning their strategies with local preferences and regulatory frameworks to tap into the full potential of this dynamic market.

Looking forward, iGaming companies should be prepared for a continuous evolution in payment methods, driven by innovation, consumer demands for convenience and security, as well as frequent regulatory adaptations.

The integration of new technologies like QR Code payments by global players also signals further potential shifts toward more advanced and varied payment solutions in the near future.