The Latin American gaming and gambling sector is experiencing a financial renaissance, with industry revenues projected to surge past $13 billion by 2030. At the center of this transformation lies a critical infrastructure challenge: how to efficiently process the millions of micro-transactions that fuel this digital economy. Kushki (www.kushkipagos.com), the Ecuador-based paytech platform, believes it has found the answer in its specialized disbursement technology.
The numbers tell a compelling story. With over 300 million gamers expected across Latin America by 2026, the LATAM region has become impossible for financial services providers to ignore. Mexico and Brazil alone generate more than $4 billion annually in gaming revenue, while the broader iGaming sector is growing at a compound annual rate of 10.4%.
This growth trajectory is particularly striking when viewed against the backdrop of Latin America’s traditionally fragmented financial infrastructure. Mobile device penetration has reached 70% among adults, creating a vast digitally-native consumer base that expects instant gratification – including immediate access to their winnings.
The payment disbursement challenge
For gambling operators, the ability to process withdrawals quickly has become a competitive differentiator. Traditional banking infrastructure in Latin America, however, has struggled to keep pace with the demands of real-time gaming economies. Cross-border transactions remain cumbersome, local banking relationships are complex to navigate, and regulatory compliance varies significantly between jurisdictions.
Kushki’s approach centers on its PayOuts solution, which the company positions as purpose-built for the gaming sector’s unique requirements. The platform enables automated disbursements directly to users’ bank accounts or payment cards, bypassing many of the traditional bottlenecks that have plagued the industry.
Direct card network integration: a strategic moat
Perhaps most significantly for the financial services community, Kushki has secured direct relationships with both Visa and Mastercard for its disbursement services. This positioning as a regional acquirer allows the company to offer Visa Direct and Mastercard Send capabilities – a distinction that CEO Aron Schwarzkopf claims makes Kushki the only player in Latin America with dual-franchise direct access.
This infrastructure advantage translates into tangible business benefits: improved acceptance rates, more efficient chargeback management, and crucially, the ability to reach the broadest possible customer base through the region’s most widely-held card products.
Risk management in a high-stakes environment
The gambling sector presents unique risk management challenges that traditional payment processors often struggle to address. Kushki has responded by implementing what it describes as a comprehensive security framework, including PCI DSS Level 1 certification and machine learning-driven fraud detection across more than 200 transaction rules.
“At Kushki, we understand that payment agility and security are as important as the thrill of the game,” says Aron Schwarzkopf, Kushki Chief Executive Officer and Co-founder of Kushki. “Our PayOuts solution, especially with the direct disbursement capability to Visa and Mastercard, not only simplifies operations for gaming and gambling companies but also elevates the end-user experience, driving sustainable growth and loyalty in such a competitive market.”
For financial institutions considering their own expansion into Latin America’s gaming sector, Kushki’s emphasis on regulatory compliance offers insights into the market’s evolving standards. Countries like Brazil and Colombia are developing increasingly sophisticated regulatory frameworks, creating both opportunities and compliance obligations for payment services providers.
Market implications
Kushki’s success in the gaming vertical highlights broader trends reshaping Latin America’s financial services landscape. The region’s combination of high mobile adoption, young demographics, and improving regulatory clarity is creating fertile ground for fintech innovation.
For established financial institutions, the gaming sector’s growth presents both an opportunity and a warning. The speed and specialization required to serve digital entertainment companies may favor nimble, purpose-built platforms over traditional banking infrastructure.
The company’s ability to secure direct relationships with major card networks also underscores the importance of strategic partnerships in emerging markets. As Latin America’s digital economy continues to mature, the players with the strongest network effects and most comprehensive local expertise are likely to capture disproportionate value.
Looking forward
As Latin America’s gaming and gambling industry continues its rapid expansion, the payment infrastructure supporting it will face increasing scrutiny from regulators, operators, and consumers alike. Kushki’s bet on specialized, vertically-integrated payment solutions may prove prescient – or it may find itself competing with larger, more diversified platforms as the market matures.
What remains clear is that the intersection of payments and digital entertainment in Latin America represents one of the region’s most dynamic growth sectors, with implications extending far beyond gaming into the broader evolution of Latin America’s financial services ecosystem.