The federal government’s proposal to create a payroll loan platform aimed at formal workers (CLTs) – which may materialize this year – brings with it the promise of democratizing credit and also highlights a series of issues that could worsen the indebtedness of the Brazilian population and deepen structural problems related to the unchecked supply of low-cost credit – and the famous ‘bets,’ or the platformsbetting sites online, represent one of the biggest challenges in this regard.
Adding to this is the fact that the platform could further increase the number of scams involving payroll loans – although this data has not been accounted for in the last two years, in 2022 Brazilian Procons recorded 57,874 complaints of scams involving payroll loans – equivalent to more than six reports per hour.
To this dangerous mix, we also add the problem of indebtedness among Brazilian families. Although it decreased by 0.9 percentage points in a year, according to data from the National Confederation of Commerce of Goods, Services, and Tourism (CNC), released at the end of January, greater worker exposure to credit could create a spiral of indebtedness linked precisely to bets.
The problem with bets: far from over
The ‘bets’ are what sports betting sites became known as, which also paved the way for a new type of betting site, online casinos – commomunly referred to as ‘Jogo do Tigrinho.’ The problem is that Law 13,756/2018, which authorized betting companies, also set a maximum four-year period for the Ministry of Finance to regulate the activity, which did not happen. The result is that these companies operate in a ‘regulatory limbo,’ with no clear rules.
With no clear rules and considerable advertising reach, especially on social media, betting games have become an epidemic. In 2024, Brazilian families bet around R$ 240 billion on bets – leading more than 1.8 million people into delinquency due to virtual bets. Lower-income families, according to the CNC, were the most affected: in January last year, they accounted for 26% – by December, this number reached 29%.
In a context where credit is widely facilitated and risk analysis is not always thorough, many workers may be led to use payroll loans to bet on online games. Obviously, this could lead to even greater indebtedness, with workers resorting to new credit operations to pay off previous debts, creating a negative spiral of financial dependency. Recent research by SPC Brasil, in partnership with the National Confederation of Shopkeepers (CNDL), indicates that the delinquency rate among consumers who repeatedly resort to this type of loan has increased significantly, reinforcing the idea that easy access, without responsible financial management, can turn credit into a high-risk instrument.
More than that, some studies suggest that up to 60% of users of gambling platforms may use credit money, including payroll loans, for betting. And to make the situation even more dramatic, the delinquency volume in payroll loans for private-sector workers increased by 0.8 percentage points between 2023 and 2024, according to the Central Bank.
Frauds and payroll loans
Recent data from the Central Bank indicate that the volume of payroll loan operations has grown rapidly in recent years, reaching levels that require stricter monitoring by financial institutions and intermediary platforms.
The issue worsens when considering that for the payroll loan platform to operate on a large scale, banks and financial institutions will be required to adopt increasingly robust anti-fraud measures.
The scenario of digitalization of financial services has shown, in recent years, a significant increase in cases of electronic fraud, often sophisticated and difficult to detect. Thus, the need to invest in technology and cybersecurity systems becomes imperative to mitigate risks that could compromise not only consumers’ financial health but also the stability of the financial system as a whole.
Moreover, centralizing operations on a single platform could create an environment conducive to internal fraud and data manipulation. Automation and system integration, when not accompanied by robust internal controls, open the door for malicious agents to exploit vulnerabilities, creating a scenario where the damage could be twofold: on one hand, the worker becomes entangled in debts that will compromise their income, and on the other, the financial institution may fall victim to fraud that increases operational costs.
Beyond technology, banks will also need to rely on formal banking credit services, where the granting and management of these loans are carried out transparently and securely. Formalizing payroll loans involves meticulous verification of applicants’ data, ensuring loans are granted only to workers who meet specific eligibility criteria. This process includes analyzing documents such as proof of income and credit history to ensure beneficiaries can honor payments.
Ultimately, the path forward must be guided by transparency, responsibility, and the pursuit of a balance between technological innovation and consumer rights protection.
The payroll loan platform can undoubtedly offer significant benefits, but these benefits cannot come at the expense of workers’ financial well-being. It is imperative that each operation be accompanied by thorough analysis, that anti-fraud measures are constantly reviewed and updated, and that consumers have access to clear and accurate information about the risks and conditions of the credit they contract.
This way, we can turn easy access to credit into a tool for inclusion and development, rather than an instrument that inadvertently deepens indebtedness and economic instability. Building a safer and more sustainable financial environment necessarily involves dialogue among all stakeholders and the implementation of measures that meet the challenges posed by the digital era.
