The regulation of the sports betting market has as one of its pillars the assurance of security for both companies and players. Betting houses will need to have cutting-edge infrastructure, capable of validating bettors' identities, protecting data, and preventing fraud. In light of this challenge, Paag, specialized in technology for financial solutions, is preparing to launch Paag ID, a platform developed to meet new regulatory demands.
One of the main challenges imposed by the regulation is the complete validation of the bettors' identities. This process is known as KYC (Know Your Customer). It will be necessary to check photo documents, CPF, and identity, as well as ensuring that the player is indeed alive. This operation can generate high costs and creates a challenge: validating identity without frictioning the user experience.
Paag ID promises to perform this verification efficiently, securely, and smoothly for the player's experience. The platform will carry out all the KYC steps in a single process, making everything easier for betting houses, and also offering bettors a faster and smoother experience. As the solution centralizes processes, the cost to ensure compliance is also lower.
By gaining total control over user data, the betting companies also have the responsibility to protect it. The new regulation imposes rules regarding the collection, storage, and use of players' data.
Paag ID operates based on security and privacy standards established by law, allowing betting houses to manage their customers' data according to regulatory standards, without depending on third parties.
But the regulation process not only ensures the security and rights of players. It also aims to prevent frauds that could cause financial and reputational impact to betting houses.
Currently, companies lose, via scams, 1% of all deposits, on average. Thus, in an operation that generates 100 million in cash in per month, there is a loss of R$ 1 million in this period. Practices like "bonus abuser," applied by fraudulent players, can harm the visibility and competitiveness of operators.
This is another problem that Paag ID aims to solve. The platform has a robust fraud prevention system, such as mandatory facial validation at the time of cashout and two-factor authentication.
Paag's solution also has, as one of its main goals, optimizing the user experience. For this, the product allows the player to use, from a single registration, the same login at various betting houses. This possibility improves the bettor's experience, who does not need to make new registrations to bet in different houses.
This functionality is seen, by the developers, as an important strategic gain so that betting houses do not drive away potential bettors with interruptions and frictions to play.
“The companies that adopt Paag ID will reduce, substantially, their fraud and account theft rates. There will also be a reduction in the costs of the process, and of course, greater protection to people who wish to bet, establishing a relationship in which all involved are benefited,” commented João Fraga, CEO of Paag.
The expectation is that Paag ID will be launched in January 2025, establishing itself as an excellent investment for betting houses that wish to succeed in the regulated market.
Source: GMB
