Nuvei Corporation is expanding its presence in Latin America with a deal to acquire Brazilian licensed payment provider Pay2All.
The acquisition of Pay2All, which holds a payment institution license from the Central Bank of Brazil, will enable Nuvei to offer comprehensive payment services in Brazil as an Issuer of Electronic Currency.
This includes accepting payments, managing e-wallets and betting accounts, and participating in all of Brazil’s local payment systems, including processing Pagamentos Instantâneos (PIX) transactions.
A payment institution license is required to provide payment services to authorized operators in Brazil’s regulated sports betting and online gaming market, which is set to open in January 2025.
“Securing a payment institution license in Brazil has been a top priority, and will mark another significant milestone in our global expansion strategy,” said Nuvei chair and CEO Philip Fayer. “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 eCommerce and iGaming operators in this dynamic market.”
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 has signalled its commitment to growth in Latin America after becoming the first global payments company to offer direct local acquiring in Colombia.
In addition to securing its impending license in Brazil, Nuvei is also currently implementing a local acquiring service in Mexico, as part of its processing requirements to become a direct acquirer under the Comisión Nacional Bancaria y de Valores (CNBV).
Nuvei is currently in the process of being taken private by Boston-headquartered private equity firm Advent International in a $6.3 billion deal.
Shares in Nuvei Corporation (TSX:NVEI) closed 0.63 per cent lower at CA$45.42 per share in Toronto Tuesday.