PicPay 's shares fell by more than 4% on Friday, June 19, after the company's name was linked to an operation by the Federal District Public Prosecutor's Office and the Civil Police, which is investigating an alleged scheme of fraud in the payroll of civil servants in the federal capital.
Around 12:54 PM, the company's shares were down 4.46% on Nasdaq, trading at US$10.50. The MPDFT (Federal District Public Prosecutor's Office) reported that the searches were carried out in the Federal District, Curitiba, and São Paulo, without providing further details.
The main focus of the operation is a salary advance service that was allegedly offered as interest-free, but which, according to investigators and the Federal District Court of Auditors (TCDF), included charges with an economic nature equivalent to interest charges.
According to the investigation, an agreement signed in 2024 allowed for deductions to be made directly from the paychecks of public employees. The TCDF (Federal District Court of Accounts) identified that, between 2024 and 2025, more than R$ 80 million were deducted through a so-called "advance fee." For investigators, despite the name, the charge functioned as remuneration for the credit granted.
In September of the same year, the Department of Economy of the Federal District established a partnership with PicPay, allowing civil servants to access the application to receive an advance on part of their salary to be paid by the government.
Information gathered by various media outlets indicates that 50 search and seizure warrants were executed. In addition to PicPay, the prosecutors targeted BRB Serviços, a BRB subsidiary responsible for payroll loans, the Department of Economy of the Federal District, the Institute of Social Security for Federal District Civil Servants (Iprev), and the Association of Public Servants of the Federal District.
Also under investigation are the former Secretary of Economy of the Federal District, Ney Ferraz, and the former president of BRB, Paulo Henrique Costa, who was arrested during the fourth phase of Operation Compliance Zero, by the Federal Police, which is investigating fraud involving Banco Master and the attempted acquisition of the financial institution by BRB.
Contacted by NeoFeed , PicPay sent a statement saying that the company "does not recognize any irregularities in the operations mentioned." It added that " its products and services are structured and offered in accordance with current regulations and are subject to rigorous control and supervision mechanisms."
The company also stated that "the advance payment was made available on the customer's own card, after a request made by them directly in the app, without intermediaries, associations or charges in this modality". ( See the full statement at the end of the article ).
Controlled by J&F Investimentos , PicPay went public in January, raising US$490 million at a valuation of US$2.6 billion. The IPO was anchored by Bicycle, owned by Marcelo Claure , which committed to investing US$75 million. As a result, funds such as BlackRock, GIC, Fidelity, and Columbia , among other major investors, joined the company's cap table .
Born as a digital wallet, PicPay has transformed into a financial ecosystem with a banking license and a wide range of services. In recent years, the company has begun operating directly in segments where it previously operated through third parties in its marketplace. Credit cards, payroll loans, personal loans, and insurance have been added to the portfolio offered to individual customers.
In the first quarter, PicPay exceeded its guidance , with adjusted net income of R$169 million. This figure represents a 92% increase compared to the same period of the previous year and is 9.3% above the initial estimate of R$155 million. However, the delinquency data drew attention, with a 1.7 percentage point increase in NPLs (non-performing loans) over 90 days between quarters, reaching 8.9%.
Since its IPO, PicPay's shares have fallen by 44.7%, reducing its market value to US$1.3 billion.
Check out the full text of PicPay's statement:
PicPay reaffirms its commitment to strict compliance with the laws and regulations applicable to the financial and payment sectors.
The company does not acknowledge any irregularities in the aforementioned operations and rejects the allegation of improper charges. Its products and services are structured and offered in accordance with current regulations and are subject to rigorous control and supervision mechanisms.
The advance payment was made available directly on the customer's card, after a request made by them directly through the app, without intermediaries, partnerships, or charges in this modality.
PicPay maintains a solid corporate governance, risk management, and compliance structure, aligned with best market practices and the highest regulatory standards.
The company will continue to fully cooperate with the relevant authorities and is confident that any necessary clarifications will confirm the legality of its operations.
