Thought about this thinking of you. Before we go on to the material that we have prepared for you, I would like to repeat some of the messages that we had in previous investor days. In 2021, we had five goals. These goals were, first of all, to maximize the results of our core activities. Secondly, to gain scale in the digital world. Three, to become digital in the mobile business. Number four, to simplify the company more lean. And number five, to transform the organizational culture. We will details in each of these sections as we have made significant strides. We have had advances in our main business lines, the maintenance of contracts, and of course, the enhancement of what we do. And we've also intensified the work with customers.
Now, the financial balance of the company that we have gained in the last few years and the creation of new teams to improve the operational part. Now, the changes are clear when we observe our main indicators. We have increased our EBITDA threefold with an expressive increase in margin in all of the areas. We went from losses to the best annual result of the company in its history. Presently, we have a company with balanced liabilities and with very low leverage. Now, these results are only possible thanks to the more than 3,000 associates that we have. It is with them and through them that we have enabled Valid to become a strong organization, focused on how we manage our results. Now, we hold periodic rounds for NPS focus leadership, along with our associates, and this has helped us increase engagement.
Number two, the creation and development of the ESG part, bringing into Valid the best practices in this segment. Number three, strengthening the communication process among all of the associates. We presently have a company with 45% of associates that are women, and we would like to balance this further. Now, we have presented expressive results and historical records, but we're still very attentive to the short and medium-term challenges that we will mention. After three years of our recovery and the volume of SIM cards, we do think there will be an improvement in the volumes. We have operations disseminated in the main continents, and we're working very close to the main operators in the world. Along with this, we are establishing important partnerships in the market. We have 50 agreements signed with different MNOs throughout the world.
In the pay segment, after a period of almost two years with low volumes, we began the expansion of credit. Because of the low Selic rate, we have seen an increase in volume and an appetite with the broader emissions in Brazil. Now, the decrease in interest rates has created a better situation in Brazil for the medium term. When we look at Argentina, during some months, we have observed a scenario that is not very, normal, but that has been very promising. Until the end of the year, the country will be undergoing elections, which could bring about volatility, and we will be able to specify which will be the final results and the impact in our business. We're following up very closely on what happens in Argentina.
Because of the changes in regulation in the last few years, in 2026, we will have changes in the driver's license in Brazil. This will enable us to enter some states and perhaps enhance the services we have in some states. Certification has increased, and recent changes have led to a new driver's license that will be called CIN. Of course, this will demand important changes for which several states were not prepared, especially those that are rendering these services in a very primary way. Valid is also ready to be able to issue these documents. All of these improvements, operational, financial, or others, obviously have increased the price of our shares. Now, when we look at our shares in the last year, the significant value of our shares. In 2020, the price of the share was approximately BRL 8.
In the last few months, the share cost approximately 15 BRL. Based on September eleventh, the quotation of our shares is of 20 BRL. Now, a valuation of 100% will put us still below the main indices. Now, the valuation of Valid is that our ID vertical and the main verticals of the company that are most new in the company represent 7x the EBITDA, but the others represent 0, and this will lead us to reflect on the evolution of our business. And we do believe there is a valuation of the company.... With the achievements that we have achieved, this gap may decrease, and of course, it is our responsibility to show to the market how we are operating and how we insert these evolutions and the solutions that Valid renders to the market.
We're looking forward with confidence, and as of this moment, we would like to offer you our future legacy. In the last three years, we have been preparing in two different directions, changes from the outside in, the impact on our clients, and the changes from the inside out that we would like to give way to. Many of these trends are leading to relevant solutions. Now, physical presence has become less relevant when we work with different businesses, showing that I am myself, that my device is secure, and this can help us to materialize some experiences in the life of our customers. All of this has never been so valuable, and going forward, we will be adding more value. We speak about centralization. If we no longer have this centralization, who is going to orchestrate everything and integrate the different solutions?
We have cybersecurity, we have the law of data protection. How can we allow everybody to converse among themselves and enhance the user's journey? Now, we have to think about customers and citizens. This is a part of all of our business, and we are prepared to work with our private and public customers and speak about the digital journey of each of them. What is important is what the deintermediation has brought about: the availability, the NPS of services, the management of data, and the transparency that society demands. And all companies are dealing with this as the core of their business at Valid. The more this happens, the greater the opportunities we have. The more digital society becomes, the more will society need our solutions.
And for this, I would like to give the floor to Chris, to Rafa, to Salvador, to enhance this vision we have of society. Good morning, everybody. Thank you, Ivan. My name is Salvador Cabrera. As you can see, I am Mexican. I am responsible for Valid, and I am very happy to be here with you. I'm going to speak about our unit, and I'm going to speak about the SIM cards. The total market for SIM cards has been reduced in the market as a whole, with a drop for 5.0 billion in 2018 to 4.4 billion, and in 2023, we should end with 4.3 billion. Now, the volumes have been strongly impacted, of course, by COVID and other reasons in the market. During this period, we were able to acquire higher added value products, improving our mix.
Beginning in the fourth quarter, this will no longer operate. The market will no longer be cured by supply. Instead, it will be cured by demand. There will be some minor adjustments in the coming months, and we do believe we will be able to return to the pre-COVID levels. We have increased our market share from 8% to 10%, 11%, maximizing our efficiency and minimizing the impact of price erosion.
In the future, we can see that there was the migration towards eSIM technology. We have two market segments, which are different, and I would like to explain a little bit before we look into the future. We have the OEM sector focused on meeting all IoT segment, that makes devices to different verticals, telemetry, automotive industry, and all the segments need to have an operating system inside the eSIM, so that later we can download the subscription and activate those in the final device. The second segment is a segment that we already know very well, which are the operators of cell phones, and they require remote managing platforms to manage by means of customized activating, deactivating, and in the subscription, in the devices, which are enabled by eSIM technology.
We are going to see how those segments operate so that we can understand the current situation and see the opportunities and the future opportunities. Now, talking about manufacturers of OEM, as you can see in the graph, the eSIM market grew a lot from 2019 and 2020. However, because of the shortage of chips, it was impacted at the end of 2021 up to 2023. This market was dominated by Apple, and that used this in all devices. After iPhone 14, there was a new model with eSIM exclusive for the inter-American market. Today, the traditional has this performance, and then Samsung delivered telephones with high level. As we can observe, the future growth for the next years will continue to be driven, especially by the manufacturers of telecom.
Samsung, that is likely to implement the technology of lower level devices and other manufacturers, especially the Chinese manufacturers, OPPO, Xiaomi, and they are likely to implement the technology in their devices. As cell phones, there's a lot to happen. Future seems to be very promising. Analyzing the data of, GMF Association, we can observe that today there are 5.4 billion of subscribers that are served by 3,000 operators at the global level, and only 10% of which are prepared to offer eSIM services. In these places where the implementation of eSIMs happen, only 30% of the clients are aware of the eSIM technology.
It's expected that up to 2030, there are 6.7 billion connections via eSIM, out of which 76% will be done by means of a smartphone, and up to 2025, it's estimated that there will be 850 million users. We can observe that up to 2030, the number of connections of eSIM will grow in a very significant manner, and we, at Valid, believe that we can take advantage of this potential. We are going to provide more details of a OEM segment, as mentioned before. In this segment, we have two verticals: the vertical focused on final consumer and the other one focused on IoT. We'll start talking about the final consumer segment. The growth in this segment will be driven, especially by the smartphones, followed by the wearables, such as watches, and then the laptops and tablets.
As mentioned before, we know that Apple leads and will continue participating in this segment, but the future growth will come from other brands, especially Chinese manufacturers. ABI projections indicate that the market will resume its growth as of 2024, when Apple probably will launch new models in other regions. In the exclusive eSIM, where the normal SIM is not supported, and Samsung implementing more types, and the Chinese will come into the market, implementing it in different segments. Our vision is that this market is going to become mature up to 2025, with the democratization of all brands of eSIM technology as different types of smartphones. For IoT, we have different technologies that serve this market with eSIM technology, and we also integrated eSIM. We are going to start talking about eSIM technology.
Expectations for the future is that the growth will be borne, especially by the automotive sector, followed by telemetry, tracking of assets and the points of sale, applications in the sector, health, and also smart cities. Even though the growth from 2022 and 2023 was limited because of the shortage, the expectations is that the growth after the shortage will take place together with the implementation of a simplified architecture that will be defined by the GSMA, GSM Association, that promises to accelerate the adoption of eSIM technology. The other technology is iSIM or integrated SIM, which is nothing but the evolution of the operating system developed for one eSIM, and that is integrated in another system. This technology allows that one device should integrate different functionalities in a single semiconductor.
The advantage of this technology is that it uses less physical space, consumes less energy, it's safer, more secure, and maintains the characteristics of remote management of a conventional iSIM, using the provisioning platform of IoT. This technology will be used in IoT with application of low power wide area, which are consumers applications with low energy for broad areas of connectivity. That will involve smart tags and this is a technology that is likely to be implemented in the smartphones and, but it will only happen after eSIM technology becomes a reality in most part of smartphones. In between, it will complement the iSIM technology, and then we can observe solutions that we will use both at the same time. In the long term, probably after 2030, this technology is likely to be the most used technology.
Considering all the segments of eSIM technology and integrated SIM, the volumes projected for 2022 and 2023 will reach a volume of 435 million units, showing an annual growth of 5%, limited by the shortage of chips. Also the reduction of volumes of sales of smartphones at the global level, that reached a minimum level of 1.2 billion units sold in 2022, will resume the sales levels before 2021 in 2024, with volumes estimated at 1.3 billion units a year. Expectations for the future are very positive. According to Counterpoint Research, more than 6 billion embedded devices will use eSIM and integrated SIM technologies, and 70% of all devices will be connected in a cell network using eSIM technology.
At Valid, we take an active role, serving our direct or indirect clients via technological partners, and we have lots of achievements to celebrate. We developed a complete portfolio of projects and with all NXP technology means. Our operating system was certified this year by our partner from China. We have a project of a tier one manufacturer of devices at China. It is in the process of final certification in now operating system, in a model that is likely to be launched soon. We expect the first volumes to happen in 2024. We'll have a launch in the next few months of a new project in the North American market, using our eSIM technology. For the integrated technology, we are already working with a Chinese partner, manufacturer of semiconductors, who is integrating our technology in one of the systems of chip models.
In 2024, we started the first deliveries of our eSIM to Volkswagen in China, as the models of electric cars. We are on the right track towards the success in the market, and our purpose is to achieve a market share of 10% in the next four years. Now, we are going to review some interesting numbers that will allow us to see the sizable opportunities we have ahead of us. According to Counterpoint Research, it's expected that up to 2030, 12 billion devices be embedded in the market, a growth of 21%, and the penetration of the technology up to 2030 will be around 70%. In addition, 55% of those devices will be from the consumer sector, and 45% from the IoT segment.
In other words, we have big opportunities ahead of us to meet this demand of remote management. Our last achievements show the capacity to grow in this market. We gained 42 platforms in 2022. In 2023, we have already gained, up to the moment, 22 additional platforms. We are working with operators tier one, in a multi-sourcing strategy for contingencies that open up, way to opportunities in the short term. From 2024 and 2025, we are going to continue delivering our platforms to our clients, such as infrastructure, generating revenues of professional services, installation, support, maintenance, even with a number of transactions, which is limited due to the market conditions. In the mid-term, after 2026, the number of eSIM devices, as we have mentioned, is likely to grow, and the number of transactions will follow suit, increasing exponentially our transactional revenues.
And we are going to continue implementing our traditional platforms over the year in several geographies in the world, to manage the traditional SIMs and then the content of eSIMs in the smartphones. In addition, we are so proud to show that market analysts, such as Counterpoint Research, which qualify different markets in this area, and using different evaluation criteria such as interoperability, security, global presence, marketing, analytics, et cetera. They ranked us as 7 among more than 25 companies evaluated last year.
We are sure that in 2023, with the achievements that we made, and considering all the differentiating factors that we offer, such as our platform for orchestration, that help us simplify the eSIM journey for the client, our partnership with entitlement service of interoperability as a service, that allows us to offer an interoperable services among different players, and with our flexible business and adaptable, adaptable to the needs of our clients, we are going to go up the position, making it clear that Valid is one of the main companies that are part of the digital transformation in this eSIM industry. As we can observe during the presentation, the migration to eSIM is going to take a while, but certainly it will take place, generating new opportunities of business for Valid.
In fact, the speed of migration of eSIM may vary, but considering the information of the market, and in order to show the prospect of the future of Valid, I would like to show the table where we have in the columns, we have the time dimension, showing the pre-COVID period, current period, medium term, that will be one or two years ahead of us, and three or five years for the long term. In the horizontal line, we are going to analyze the unit margin of eSIM, the unit margin of activation transactions, and the operating system, and the volumes associated to both. My intention is to show how important it is to compare the periods. We have a very limited unit margin.
We had no digital business, but we have very, very representative volumes at the time, such as the sum of the margin and the volumes. We have a lower volume when compared to the time pre-COVID of cards, but with a larger margin. But we have good margins in the operating system of eSIM and activations of eSIM, however, in a very low volume. So the product of those two margins with the volume that we currently have, we can say that we have a very, very good margin for this year, 2023. And for the next two years, we expected that unit margins of SIM, the physical SIM be reduced, but probably it will not reach the same levels as we had before the COVID pandemic.
The margins of the operating systems and activations are likely to be maintained, because we do not expect that the volume will increase in two years, and we do not have big devices, and that's why the, the volume and activation operating system will be relevant. The level of margin will be lower in the next two years. As we mentioned, different physical prices will have some impact without reaching the pre-COVID levels, but will be close to them. In the same period, the price of services are likely to be maintained at current levels, since the volume total of love is going to increase. We have a combined model which is lower than the current and larger than the pre-COVID margins.
Finally, when the migration of eSIM accelerates in three or five years, the physical margins are likely to reach the minimum levels, and the levels will be similar to what we have today. The operating system and eSIM and the digital transactions will have a structure as a result of the exponential increase of volume. The combination of those businesses are likely to generate margins which are much better than the current ones. And then I turn the floor to Cristina Boner. Over to you, Chris. Good morning, everyone. It's so good to be here with you to share the vision of future for Valid Pay. When we look at the whole business, the result comes from cards, basic, and we see the speed and the ecosystem of means of payments happen. The question that is asked is the following: how long will cards last?
To answer the question, we can go back and look at the history of, history of services and products, whose journey was very similar to what we see today. We chose this thought of another means of payment, which was the check. In the half of ninety, about 30 years ago in other words, the first internet banking platforms were starting to come up, and without any doubt, this was a big challenge to the paper check, which was a means of payment, which was absolutely analog, with a bad journey and with a risk of not receiving the amount. Even then, years went by so that the volumes would drop, or cleared, would drop by half. In Brazil last year, 600 million checks were cleared. At Valid, our check operation delivered BRL 109 million in revenue in the past five years.
Of course, the rhythm of the world today is different. Technology brings in advances in a much more accelerated way, and we are living a real revolution in the means of payment. All this makes the dematerialization of the card becomes a fact, but this future is gonna take a while to be materialized. And then when we look at the card, we notice some characteristics and data that will help us understand this thesis. The first one is that the card is what materializes the experience of the banking brand. Digital banking is the only tangible instrument that the client has. And in banks, issues continued, and we noticed a movement that they want to offer a proposal, proposition of value, which is more robust, such as a metal card, would be an example. And Big Tech, such as Apple and Amazon, launched their own cards.
Amazon launched its card in Brazil. In addition, there is data from the Central Bank of Brazil showing that a card, this is in credit, debit, and prepaid services, is still the means of payment which mostly used in Brazil. The question is: what about digital wallet payments, cell phones, watches, smartwatches? Of course, the payment by proximity increased a lot, 85% in the first quarter of 2023 versus the first quarter of 2022. Abecs Research had a research for July this year, and it verified that 54% of consumers use the payment using the contactless technology. Without a doubt, it's very comfortable, it's very quick, and out of those interviewed, 78% use the card for the payment, in contact, contactless, instead of using the cell phone or the watch.
And then we consider two scenarios, short and medium term. How can we extract the maximum value for our operation? How can we build our future, considering that we are going to have this dematerialization process? In the short term, where the card is still very relevant, we continue searching for efficiency in our operation at the plant. As part of our answer, this year, we had savings higher than BRL 3 billion, and we continue devoted to the topic. There are two points that I would like to mention. The first one is related to the insourcing fabrication of the important components of the card. We have already started the operation, and this will start in 2024.
We are a very relevant player in terms of identification in Brazil. 60% or 70% of Brazilian documentation is in the hands of Valid. We also have an important role in ID in the private world. In this environment, we already begin with a very relevant case, where we held the onboard events of Caixa Federal that contemplated 50 million Brazilians. We know that banks are mature assets, they're highly sophisticated, and they have anticipated the hiring of this service. Now, the universe of the identification of people with high levels of security against fraud is highly dynamic due to two variables: the technology available. When we speak about the network of smartphones we have in Brazil and the behavior of individuals, the customer that is doing the onboarding and the person trying to commit fraud.
Although the market is very mature, there are opportunities we would like to address. There is an additional factor that I would like to mention, the possibility of authentication through your finger or voice, and Valid has important expertise in this field. We know there are journeys and transactions that are fundamental in medical assistance, telco, the financial companies, and the health area. I would like to share a video with you to understand this. The physical presence is less necessary for most businesses, and in that context, to verify precisely the identity of a person has more value, and the Valid solution simplifies this process. Here we see a person who is opening an account. Based on the initial registry, our onboarding process will begin the face match with the document, besides a proof of life. And here, the important differential for the Valid solution.
This is a tool that has been adapted for the cell phones in Brazil, not only the smartphones. We use 50% more documents when compared to the competition. In other words, this helps us increase the success rate of the marketing campaigns of our customers. Artificial intelligence will extract data, will carry out several consultations throughout other databases to guarantee the security and prevention against fraud. We would like to work with the highest conversion, not only for Gabriel, but also for others. To increase the efficiency and onboarding, we have a digital back office that analyzes, corrects, validates the rules, and personalizes the workflow. This is another competitive edge that we have in our solution. Any convergence found in Gabriel's registry will be recorded on the platform through data analysis.
Finally, we have the analysis of documents that will analyze the documents extracted through different base, databases. Very well. Now, Gabriel can count on 54 million processes already carried out by Valid, a more secure and more fluid experience. Our third front creates a connection between the public and private world. It is the journey for the concession of benefits by the government. Nowadays, the process to grant benefits has a decentralized management. For each benefit, there is a different means of payment and very specific journey, and in this model, it is necessary to manage several suppliers, to manage a series of costs and a very high degree of vulnerability to fraud. Despite the fact that there is no knowledge on the use of these benefits, it is a highly complex environment that is not very efficient.
By identifying the citizen, we can create journeys in these transactions. We can work with a city hall or a state through a single card that will concentrate all of the benefits and thus simplify the process and the management and add a level of intelligence to the entire process. We can also make feasible the management of the balance through an app. Now, to work on this experience, we have prepared a video that we would like to share. Imagine you are a mother and live in one of the 5,000 municipalities of Brazil. You want to have a benefit, which is the milk help, and you have to walk to the delivery station, where you will face a long line. Your child is entitled to a school benefit.
Once again, you will have to go to the site where they will deliver the kits that is also very far away, where you will once again face a line. Your child is entitled to a transportation ticket. You will have to carry out another registry to load up the amount every month. These are three different benefits, each distributed in a different way, with very analog and inefficient journeys. That is why we have the Valid Citizen card that can be used through a single channel, easing the life of people and making public management much more efficient. With a single account and a single registry, you can receive all of these benefits and can do everything very close to your home.
The same account can be used to manage your traveling balance, and this is how the Valid solution will work in health and education, in social assistance and housing. In São Caetano, it is already existing in the field area. Everything is integrated in an app or a card, materializing the public good in a much simpler way. For the government, this is a way of reducing the risk of frauds, managing access to public services. The citizen card are valid all the benefits in a single place. Now, having seen this, we can state that it would be the rupture of a perception where the government materializes for the citizen in a very negative way. We can change the way city halls work, increase the digitization of a marginalized population, and increase the NPS of the public power, besides minimizing fraud, abuse, and waste.
Now, all of this can be done through a CIN card. Nowadays, 15% of the Brazilian population receives some sort of benefit in Brazil. We're referring to a market that represents more than BRL 1 billion. We have a pilot with 100,000 inhabitants, and we have the opportunity of carrying out an upsell where Valid is already present in the municipality. We bring Valid Pay closer to the public governments, where we make transactions feasible. I would like to give the floor to my colleague, Ilson Bressan, the head of this section. Good morning, everybody. I am Ilson Bressan, the manager of Valid ID. Let's just speak about this vertical, and of course, don't interrupt me at any point should you have a question.
We're going to speak about the challenges of this vertical and the vision that we have built based on the evolution of cities throughout the world. If we look at what has brought us here throughout the years, we have 80% of market share in the issuance of cards in Brazil and 60% in the issuance of our Brazilian ID. We are the great preference of clients when it comes to carrying out those services. What allows Valid to achieve this position is the expertise in terms of the volume and the way we have always been very careful with data that is sensitive for the population. We are present in the way in which each of the citizens identify themselves day after day.
Now, to become ever more relevant, we need to broaden our tools and our product portfolio, and that is why we went to see the evolution of societies worldwide, seeking for inspiration and see how a strong and secure ID system has been anchored in those companies. In the Nordic countries, like Denmark and Finland, we visited Estonia. We also visited Singapore, where there is a great preference of society, the U.K., Australia, and other countries that have evolved significantly in the last few years. We have also looked at surveys with we see the potential impact of the generation of wealth. According to McKinsey, a strong and digital world can give thrust to the GDP of Brazil very strongly. And in 2021, we look at the cost of Brazil.
It goes from BRL 104 billion-BRL 154 billion every year to prove that you are you. This represents 2% of the Brazilian GDP. Estonia was able to save its GDP when it created an ID system that is the great pillar of the digital functioning of that society. Now the time has come after a great deal of preparation. We are an official issuer, and we can now work in the government environment, and we can become the great ID provider in Brazil. We're referring to a secure platform where people, their identities, and their journey will be guaranteed, both in the public and private sector, not only identifying but also authenticating and authorizing, becoming a hub between citizens, both public and private. A secure digital world will not be possible without a secure ID in each of our lives.
If we look at the digital world in Brazil, there's enormous opportunity for Valid in this environment. People spend a great deal of time in front of screens. We are the second country in the world when it comes to the time that we spend in front of screens, both of smartphones and computers. We do this for banking services, mobility, delivery, commerce, and much more. We know that it is good to save time and money in our private lives. It's time to also expect this from public services, and Valid is aware of the frauds and abuse that happens, and we have special products, both for governments and companies. Now, we need an ecosystem in the Brazilian society that will guarantee our transactions in a world that will be ever more digital. And this is a space that we would like to occupy.
We believe that we are the player that is more prepared to work in this because we already know the people, their journeys, and their transactions. People need to have a strong and safe ID. Journeys require interoperability to empower each individual to become the owner of their own identity. Of course, we have to have services with secure authentication to increase the confidence in these services. We see that there are different stages in different areas. What differentiates these is how managers use technology, data, and evidence when they make decisions and to create the most adequate public policy. Of course, this inaugurates several opportunities for Valid. We can differentiate clients, different solutions, using artificial intelligence, machine learning, and automation, enhancing the level of quality of the services rendering, and of course, reducing the gap with what happens in private lives.
So we go from a reactive model, we go to something that is more responsive, where we work with authentication, with authorization, and go to a predictive model, where we will have a relationship platform and integration of what is public and private. We will go through different tiers, through better integrated structures, to offer better services to the citizen. When we finally get to an area where data is shared and be under the control of citizens-
We have websites with basic services offered to citizens, evolving to portals of integrated services, low code platforms, and that will be able to service the needs of the population through predictions, something that will be adequate for each member in the population. Now, some of these are ready, others are being prepared. We already have the digital app implemented in 12 states, also implemented in the medical councils, in the federal police, and the registration of foreigners. We have a digital ID in Piauí, where we have been authenticating all of the citizens of Piauí when they access the integrated services. Going forward, we have a platform called VIDaaS, that has more than 12,000 subscriptions working with cryptography, leading to a fully integrated future. We want to work this ID platform for the full integration of both public and private services.
Let's now see the case in the state of Piauí, with the platform showing how this is going about in the official platform of the state. We made forward into interoperability, and we have been providing the unification of data bank in different sectors, in different cities. Another example is the national election that was carried out in August 2023. More than 600,000 physicians voted using Valid structure. This is equivalent to say that we are ready to hold elections based on authentication for each cities with up to 600 voters, and this can be done remotely. After this, in the slide, we can see that we have a platform that has monetization of data connected with a safe ID, secure ID, with transparency that can control everything that happens to the person's data in whichever environment.
And this can eliminate the inefficiencies when you need to prove that the person is alive, ensuring an environment that is secure, showing that you are who you are, and showing that the transactions that you can make are safe in a digital environment. And lastly, the presence in those government environments show that we can issue documents and increase the scope of the service, digitizing resources that provide savings to the state. We eliminated fraud possibilities, providing better perception from the population and to the service that was provided. Some example, case at Detran, in Rio Grande do Sul, with biometric authentication for the students who need to do a driving test. Another example is the creation of a digital counter in Ceará, that offered digital services for the documents, proof of life, that allow the electronic transfer of vehicles.
We would like to show another case that started in 2023, that is the automation of the roll call being called in at schools. This was developed by Valid in a partnership with Celepar. Let's see the video. The Secretary of Education adopts a solution to the students, and automation results in 80% of savings. Everything integrated with the educational system via biometric method to detect and identify the students, and transforms the app into an efficient solution and secure solution, with less bureaucracy and more comfort to teachers, parents, and students. The process is really simple. Each one would install the app on the smartphone, and then there's the authentication with the security center.
Automatically, the process—the teacher will seek the classes to be given on the day, and then you can click and receive all the students that are present in the class. If you click on the class and attendance, you can allow for the facial recognition, and when the camera is open, you can take picture of the students, half of the class, and then another picture of the other half of the class, and the system will recognize the students, it will complete the list with all those attending the class. The same app also records the contents of the class and sends to a system with all the information. Valid, recognize and legitimate is our daily life.
Having said that, when we look at the size of markets for documents to be issued, we see that TAM is not bigger than BRL 1 million, and we can reach BRL 700 million, and we generated BRL 500 million in net revenue. When we expand this horizon, and we've maintained the position of issuers of documents, and considering everything that we show there's opportunities in the digital world, this market can multiply by tenfold, and we can operate in a market that is 7 times bigger, with the potential of very big increases, provided we do the right investments in organic and inorganic growth. With this vision, based on the core competencies of Valid, we understand that the 3 pillars: ID, strong and secure interoperability and digital services.
So it's digital first and not digital only, because we have interoperability with integration in the proof of identity and the authentication of transactions of every journey. And we invest evermore in digital services. We're using cases of use that get closer to the experience of the private, that it relates to saving time and money, and then we can create the super identity providing provider, providing services in different fronts: security, health, automation as a trends, education, mobility, companies, and commercial chambers. So this is also related to the private world because we have the competencies for those journeys, be them background, onboarding, payment and identification every day, in the real estate, for travels, for purchases, and a number of other journeys. This vision allows us to sustain what brought us this far and build the bridges to the future.
We preserve the revenues that are currently made, and will also lead us to bigger revenues as third parties, which are trusted by the Brazilians. It's the core and the adjacent, adjacencies, and this is going to likely to happen inorganically and organically. And related to this last format of inorganic growth, I would like to invite Rafael Saboato, who is going to talk about the new business. Thank you very much, and over to you, Rafael. Thank you, Chris, Salvador, you, Bressan. I'm so glad to see all those opportunities. I hope you feel the same. New clients, new markets, new product, and the adjacencies of our new businesses. They offer opportunities, but those markets also present us with challenges. Be them access to new clients or creating new products.
In order to face those challenges, we are going to go after people and companies that will help us complete our long-term strategy. This is the reason why we have an M&A team and corporate venture capital that is attentive, on the lookout for opportunities to change, to face those challenges, in addition to accelerating our plans by means of acquisitions. The sectors we are looking at do not change the theme of the future-related strategy mentioned previously. Digital government, identity, onboarding, and identification-authentication. Since it's a one-way process, in order to accelerate those phases and get into those markets, we want to reach those new companies, new channels and new people, so that they can access our technology for higher scales in order to grow their own business.
As an example of the search, which represents how we are looking to the future, I would like to mention the rationale of the last two investments we made, Vsoft and Flexdoc. Vsoft is a technology company based in Paraíba that help us grow new businesses in the digital government, especially related to schools and their trends. It brings another expertise related to digital technologies and biometrics, bringing in more quality to Valid product. Flexdoc, it's, it's an asset that we were integrated in an important way in another sector, and I would like to give more information about this. We believe in our business. We believe the onboarding digital, considering that this is close to our core business, and it has a very good price in the market.
It's a solution, and, because it provides secure identification, the same as we use for IDs, and we are close to clients, above all, government and banks. We are going to get into the market in a more integrated way. We invested in a company that has the capacity already proven, related to solutions and clients. We get closer at a lower end, lower risk and lower cost. We looked at different companies in the market, and we found at Flexdoc a mix of important competencies that I would like to share with you. From the viewpoint of corporate structure, we're bringing Flávia Amorim and a team that has experience of more than 15 years in the banking and technology sectors. As to technology, they are able to work with the diversity that we have in Brazil.
Diversity of smartphones, of devices in the hands of Brazil, more or less technological, the way that the documents are going to be analyzed, connections in different places in Brazil, diversity in the larger and lower levels of understanding the technology by the users. All this put together allows Flexdoc to analyze 60% more clients than the competitor, and this brings in a quality solution to our clients. From the viewpoint of cases, we have more than 50 million of onboarding events in different institutions, and in one of the major banks in Brazil, providing access to Brazil with digital services. Flexdoc allows us to go into the digital onboarding with scale, and Valid brings instruments by means of channels and clients. Also, we also offer the technology of biometrics.
This visibility of new market, onboarding a digital government, involving our B2C, B2B or B2G clients, shows that we have a long way to go from the core when we identify in a secure and strong way. Talking about the funds, where the funds came from, I would like to invite, Ivan, once again to take the floor. Ivan, welcome again. We are getting closer to the end of the presentation, and I would like to end our event with the messages. Today, we can say that the turnaround period is behind us, and the numbers we showed previously made it all very clear.
The next snapshot we see on screen shows that in the past 30 months, the period that we say that we were housekeeping, and considering all the funds that we had from the cash operation management, they amount to BRL 1 billion. The biggest share, 70% of this amount, was allocated to balance the liability structure of the company. This amount to pay the shareholders with dividends or share buyback. Since we have a lower level of demand for the liabilities, we have more cash to invest in everything that we mentioned during the presentation, but also to pay our shareholders. This is not only the financial dimension. Valid has undergone a change when time has came. We're, we are prepared if changes come from abroad and we are ready when the change is made by us.
I talk about evolution. I would like to show the new position that we are going to adopt as of now in order to materialize the way we approach the market. I would like to share a video with you that will translate to the new position of Valid. The history of evolution of mankind can be narrated using three elements. Whenever we make headway, there is an individual that is looking for something or doing something to realize the desire or the search. This is related to Homo erectus that controls fire, Einstein, looking for answers to complex questions, like also TikTok generation that's looking for the sense of belonging. Also for the consumer of different segments that look for well-being and purchase lots of things.
With the dematerialization and decentralization of the relationships caused by the digital world, any new evolution as of now will only be possible if the security of all the parts will be ensured. If it's authenticated, proven that I am who I am, if it's authenticated, and lastly, if my action is authorized. For us at Valid, people, their journeys, and their transactions are essential parts of the evolution to the digital society, and any headway will only happen with the identification which is secure of all those elements, not only as anti-fraud element, but also as an authentication platform, authorization, relationship, monetization, and tracking, connecting everything and everyone safely. More importantly, accelerating the digital transformation, both for public services and also corporate services. As of this vision, Valid is an integrator of the solutions for secure identification for people, journeys, and transactions.
Dedicated solutions to three major ecosystems: ID, involving the fingerprint, banking, using means of payment and connectivity. To that end, we go beyond our role as manufacturer, integrating solutions to our clients that were developed by our plant and software house or by partners establishing different parts of the world. This is how Valid plays its role and, as an accelerator of changes. The future has come, and Valid is the fundamental transformational role in the transformation, in the digital transformation. Welcome. One more step of our evolution. Valid, the evolution of trust. Now we are going to start the Q&A session. The first part is going to be conducted by Daniela Belisário, our Manager of People and Culture, and then we are going to answer your questions.
We really hope that this content was relevant to you, and we would like you for being with us one more time. Daniela, over to you. Hello, Sidney. Sixty-six years of history, Valid has undergone different changes in the market, internal changes, and many others that are about to come. How do you see this movement of the cultural transformation of the company? We went public in 2006. We had a number of years which were very successful, very good, from 2006 up to 2015. Nearly 10 years of growing profit and everything. Of course, the company started to look at, at itself. It was feeling as itself, as a strong company, and we no longer heard what the clients had to say.
There was a time when it was necessary to have a complete and profound transformation, and then we changed the officers, also the shareholders changed. There was an important change in the management of the company. We replaced seven of the eight officers, and this is when we started a cultural transformation at the company that lasted nearly three years. I believe that this cultural transformation was very successful. Data show that. We would say that the initial phase has been completed. Valid has been a corporation for a while, and the government has to look at this very carefully. How has the board seen this way of operating in the past three years? I think the role of the chairman of the board, who do not have anchor shareholders, is very difficult. This is not our case....
Three or four shareholders would account for 40% of the shares. And three or four shareholders are able to—we are able to talk to them. In the past, we discussed with them, we wouldn't have been able to make those decisions of transformation without this shareholder base. They were the ones that allowed to go and undergo this transformation. I hope I can count them in the future. So we are a corporation. We've been a corporation for some years, but we always give a special attention to one group of large shareholders, which are very committed to the company. And at present, this wonderful group, we are very lucky, by the way, and they provide us with a guarantee that in the future, we are not going to make decisions without listening to those shareholders.
These are very experienced people, seasoned professionals who've been in the business for a long time, and I intend to be listening to them whenever we have to make essential decisions. So this is a guarantee that we have to the other base of shareholders. We have a very good group, experienced group, and they are very attentive to whatever is happening. And how did the company manage to even taking part in some chains in the market that have been discontinued, how could the company reinvent itself? How has it been to take part in this process? The company is there to serve society. A company that does not serve society will not survive, and that's what we do. This is the reason why we exist. We're here to meet the demands of society. We listen to what they have to say.
We listen to clients, we listen to the people around us. We observe the behavior and how the behaviors change. We manage some curves, curves, demand curves that move up, demand curves that go downward, and we don't know exactly what would be the speed of those curves. We know that the curves are there, and every day, we have to be on the lookout of those movements and see how those curves are behaving, and the company has to respond to that. It's our role to listen to it, to, to be alert, and to pay attention. So this is the role of the company, and this is the reason why we're here. We are here to listen to what's happening. We have to be on the lookout to whatever is happening and respond to it.
So this is a way of continuing alive, and this is why we're here. And when we say that we are looking to the future in a practical way, how is the company preparing for that? We have a governance, okay? We have the shareholders, we have the board. The board gets together on a monthly basis. We have different committees, new business committee. We have people from the board, the people from outside. We also have the executive board. We have almost a tool that maps the society, and this is how we measure on a periodic basis, where we are going to place our bets. Of course, these are the secret to make bets that are successful. We cannot make a lot of mistakes. Another important point is the quality of the leadership.
The role of the board is to ensure that the senior management is prepared. There is a succession plan. It's renewed whenever it does not work. Our role is to be attentive, to be able to watch how the leaders are behaving by means of a permanent conversation with these leaders, and this is something that we have lived intensively. The preparation of the company is related to the quality of the leaders, and we are well-served, and results show this. What's the expectation of capital investment for the next cycles?
your participation, and I would like to ask the audience to please hold just a few seconds while we reorganize for the other questions. Thank you very much. Well, thank you for having waited. We have already reorganized, and we're going to begin what is the most important part, which are the questions and answers. Simply to remind you, for those who have not sent your questions, there is a Q&A icon at the bottom of the screen. We're going to begin answering the questions. I am here with most of the executive board here at the studio, Danny, Ivan, Chris, Rafa, and others, and Sidney and Salvador are connected. They're, of course, busy with other commitments, but should there be a question addressed to them, we will include it on the screen. Very well.
The first two questions we have received come from Fabio and are the following: It's true that Valid has done an excellent work in reducing its debt and leverage in the last quarters. You're going to maintain that indicator in the coming quarters, or will it increase because of an M&A or other factors? I will respond to the question. When we began putting the house in order, we had a very high leverage, 3.5x at the end of 2020, and we have gone through a reduction. Thanks to the efforts carried out, we now stand at 0.5x at the second quarter. Of course, if we look at the cost of capital, we could have a bit more debt to balance out things, but we're speaking about a country where the Selic rate tends to be very high.
It's not because we want to include debt in the balance that we're going to do this. Some time ago, we saw that there was a crunch in private credit, so we keep talking with our partners, and opportunities are popping up that we can look up. Something that we look at is how our debenture trades in the secondary market. This gives us a reference of the rates, and it's good to know that we have this channel should we need it. Now, to connect this to what you said regarding M&As. Nowadays, in-house, we have nothing that would justify raising funds for that. The M&As that we have worked with are minor M&As. We can handle them with the cash generation of the company itself.
Now, if an opportunity arises in the pipeline, it's good to know that we have this channel, but nowadays, the board and the directors are quite calm in having a very well, balanced, balance. And the next question also comes from Fabio: Without giving guidance, your expectation for the fourth quarter and the rest of 2023 is for EBITDA margins to remain at the levels that they are. Is there anything that could impact your production costs, an increase in dollars, an increase in the cost of raw materials, or anything else? Very well. I will take this question myself. In the initial presentation made by Ivan, he spoke about the challenges we have in the medium and short term. We have, challenges in the mobile part, perhaps a pressure in prices and not in cost, because of the resumption in the production of chips.
And with inflation that is not controlled, we could have an increase in prices, but there's nothing that would justify significant changes in margins because of cost. There are market dynamics that we also mentioned. We could have a reduction in volumes in terms of driver's licenses or more competition in terms of cars, but presently we're quite comfortable with the margins that we have in-house. Now, simply to remind you, questions will be done through the chat. I will stop speaking a bit and give the floor to Rafa. Rafa, if you could... And I'm the one that included this question. Yesterday, I participated in an event, and they said, "Oh, you're holding your investor day tomorrow." There is a question I would like to pose, so I brought the question because I think it's important for people to understand our dynamic.
The question basically is, if we could speak about the approach of the Valid M&A team, which is the funnel that we work with, listen, you can explain this better than myself. Well, thank you for the question. Yes, there is a change in the M&A dynamic. During the last two years, there were two factors, an inside and outside factor, that made us less active in the M&A proposals. We were working with cash management because of our debt. Now, in-house, we had a scenario of very high interest rates and the price of assets. We were not able to find good references that would merit investments. Now, this will change. As of this moment, we can see better assets, and we are now adopting a more proactive approach vis-a-vis the past. Now, when we look at the coming months and years, we will become more proactive.
We will, when it comes to seeking the growth of the company in the two sectors that we mentioned, we have a great deal of expertise in governments and digital governments, and we carried out our initial investment in Flexdoc for the onboarding market. Now, the size of the tickets will be very similar to what we have done so far, but we do believe there will be better opportunities looking forward. Thank you for the question. Thank you, Rafa. Now, to continue on, the next question comes from Eduardo, and I will send it to Chris. Chris, you spoke about the potential integration between IDPay , and you did mention the benefit card. If you could speak more at length about how this product works. Thank you for the question, Eduardo. Yes, that product, that card, comes from a company in which we invested.
We already operate with it in some municipalities like Vinhedo and São Caetano, where we have operations. And I think this product has two positive points. One, referring to Valid itself, it creates a bridge between ID and pay. Why? When identifying a citizen, we use all of the in-house expertise to issue driver's license, to carry out the identification, and we bring in the pay world, adding that possibility of transforming all of this into a means of payment. Now, the second factor refers to service in general. Nowadays, the government of a municipality of the state will look upon the different benefits that it grants as if they were independent verticals, with a difficulty of management and with a very high-level view.
Now, this product will consolidate this vision, and the government will look upon the citizen as an individual, and for the individual, for the citizen, they can materialize the government in a completely different way. In terms of governability that this could bring about, this is very successful, and there is a significant added value in how all of this will materialize for the citizens. This is what we will be delivering to the market as from now. Thank you, Chris. We would like to remind you that questions will be done through the Q&A from the Zoom platform. We go on to the next question, coming from Renata. If we think about the digital government topic, which is the path for Valid to continue in the leadership in the Brazilian market, and if you're considering entering markets outside of the country? Thank you for the question, Renata.
Well, to continue our leadership, we're going to work in areas that are very similar when it comes to issuance of documents. We're certainly not lacking clients in the public or private market as we occupy this space with the digitization of processes. We have platforms that can prove identity. Now we have the digital ID, and we offer access for other journeys of the citizen, including benefits. This is the way to continue off occupying this space, to become relevant for the Brazilian country as a whole. As I mentioned, there are several initiatives that we're undertaking, and they begin by being present in each of these journeys. For example, we work with driver's licenses in the Department of Motor Vehicles and other institutes. We offer greater ease to the citizen to have access to these services. We also allow for savings in the entire process.
This is how we will remain relevant. Now, when it comes to becoming international with these services, we're not thinking about this presently. We're getting ready for that outside of Brazil. But in the last three years, we had intense activities in-house. The turnaround was concluded at the end of 2022. We also had several initiatives in terms of unifying products and others. For each state that we have a contract with, we had a different system. Presently, we already have a national legislation, and we can implement the regulations in a more unified way, and this will allow us to have a single platform for IDs that can be scaled up in different places. Now, there's a great deal that we can still take advantage of in the Brazilian market, in the identification of these citizens, whether it is in the public or private market.
What we have, of course, will enable us to think about an expansion in the near future.
Thank you, Bressan. Now our next question comes from... Okay, I'm going direct to Salvador. Let's see if everything's working. It came from João. Congratulations on the presentation. As to mobile, with migration for eSIM, where the business model is based on the activation system, how do you see the competition in this scenario? Salvador, are you there?
Yes.
Can you hear me?
Yeah. João, thank you very much for the question. As to eSIM, during the presentation, we saw some description, but as to activation of the operating system, we come from a model of licenses, and the competitiveness has to do with the capacity, technical capacity. There is a number of players who will take part, and we'll see who is capable, and the history, and the global presence to offer a service related to infrastructure, eSIM, in different devices that are going to be in the market. So it's a model of licenses, so the players may be those that already develop technology of SIM card apart from those activations, because in fact, it's likely to grow in the years to come.
But the best ones, which are qualified, are the ones that are already working with the operators and those who are, already have a global presence, because it's a very sensitive service in the market, sensitive to failures. It's a service that requires a highly reliable platform, which offers redundancy, and I believe that likewise-
There will be new entrants in the market, but I think that in the long run, I believe that those who are currently well-positioned and provide services to the major players are the ones that are going to provide more the services to the market. Thank you, Salvador. I think there will be another question for you to answer, Salvador. But then the next question is to you. It came from Ricardo. It has to do with government. You, you, described interesting solutions related to the government environment. He asked you three questions. I'm going to ask them all. Who is the one that has the most focus of the team and presents the highest potential? How do you intend to face the challenge of scalability of solutions? We understand that in the past, it was something important in some of the business of Valid.
How do you intend to face the challenge in different entities of the government? Thank you, Ricardo. The first topic is related to the focus of the team, and what's the focus of the team to deliver the best solutions. Of course, we want to look at digital solutions and be closer to the client, especially those who are already with us with a contract. We have to make advances in the ID digital as an authenticator of the journey, as we mentioned when we said that Gov.br platform launched, and this model of authentication is used not only for the journeys in the government environment, to use with the main journeys, but that service is provided to the right person, and it's a proof of identity, identity which is not physical for a certain environment.
So this model of proving the identity in an environment which is digital, without a doubt, is one of the biggest focus of our team. But this also interacts with another platform that allows us to deliver solutions associated with some journeys that are going to be digitized in the future. We mentioned the case of Celepar, the case of digital counter of Detran in Ceará, the case of authentication in, at schools and also in the task for Detran. So this identity requirement is present in all the services provided, and it's one of the biggest focus of the team. First, because we need to simplify the citizen's life and allow the citizen to have a better perception of the service that is being provided by the public entity.
Then we have to select what would be the priority of the journey that's going to be digitized, and what we are going to do in terms of the digitalization of the journey. So we are going to see what the one that provides the highest saving for that identity. So this is the focus that we're giving now. We want to advance in those solutions with proof of identity, to provide saving to the state and also to increase the satisfaction of the user. These are our priorities at the moment. The other topic, the second question, has to do with our experience in relation to the different dimensions, especially with the previous experience regarding other products and portfolios.
Well, we have a model which is different from the model we had. We have something that connects all this, and this is related to how we identify the citizen so that the state can interpret who the person is, so that the person can receive the benefit. And in this aspect, I can prove that this is the citizen we're talking about, and then I can provide enhanced services with better services and higher savings. So it's different from the models that we used in the past in smart cities, because we have all this connection for him to access the services and also the identification of the specific needs of that citizen or of a cluster population, so that the policy can be provided appropriately.
If we can prove this identity, this can be used in other platforms which are private, where the citizen or the client have also the same need of proving who he is on their daily activities. How can we scale up this solution? There's something connected to what happens inside the company. In the period of turnaround, we've built platforms that can be scalable related to architecture, product, and business. This is headed by the team of Rafa, and we saw what would be the savings when we implemented this scalability. This can also be used at the federal level, also at a municipal, local, state level. We understand that Brazil made advances in some initiatives, especially as regards the digitalization, especially after the pandemic. The state is the legal responsible.
So the legal responsibility for the issue of an ID is done at the central level. So we have been working on this concept with the other states... for them to understand that they will have more accessibility to this unique database that would enhance the insurance of secure identity, identification. And if there is this physical platform for identification, if this can be provided to the city level, and if we can prove that identity can be proved, and this was something issued by the federal level, this is something that can even included in the public transportation. The person can prove their age and can have, for example, free tickets. And we are ready to implement this. But how can we scale up this?
We have to look what is the consistency of what is—all this is connected when we are able to provide the, the identity possibilities in Brazil, and the same player and with the same relevance, is going to play in the digital world. Thank you, Bressan. Salvador, once again, over to you. A question was asked by Lorenzo, and this is the question: Can you talk about the eSIM economics versus the traditional SIMs in terms of TAM, margin, and required investments? Yes, perfect. Thank you for the question, Lorenzo. It's important to mention first that we are going to have a period where both technologies will be used. We are not going to have a very abrupt migration. Both are going to exist at the same time.
The traditional SIMs will have volumes decreasing slowly, little by little, and the TAM is comparable at the unit level. When we talk about the TAM at the digital level, we have to think about licenses and operating systems that will be included in the device, in addition to the digital part, which are related to the activations, the onboarding of those clients in the smartphone network. In terms of licenses, we are going to have lower TAM with higher margin and a level of activation, which is much higher, because probably what's going to happen is that in one smartphone, we are going to have two or three active subscription. All the sum is going to total at a higher margin that we have posted this far. Thank you, Salvador, once again. Ivan, there is a question related to your strategy coming from Eduardo.
It's a long question. We can go back if anything happens. Thank you very much on the presentation. Congratulations. You provided a broader view in relation to the company, especially in relation to the growth, which is an important element in this phase of Valid. We see some convergence of Valid Pay and Valid Mobile, even though it's promising in terms of eSIM, it's more independent. I would like to know more about Valid Mobile strategy in the long term, and if you want to go for the leadership at the global level. In terms of scalability, what would be something important to learn about Valid? Thank you, Eduardo, for the question. I believe that what we have in terms of mobile in the future, Salvador was able to describe in his presentation.
There are some pathways which are well-defined, not only related, in relation to eSIM, but also to platform and subscription management. Along this journey, the migration from the traditional SIM to eSIM is going to last a while. As Chris mentioned in her presentation, the future takes time, so the physical chip is going to continue to be very relevant in this chain. Because this is a global chain, it is distributed from seven, eight players, out of which four or five are very relevant. I would not be ambitious enough to assume the global leadership of those platforms of subscription management, because the telecoms also allocate their volumes of the traditional chip, and they use the same strategy when we use platforms. Because nobody would like to be left behind in the change.
Nobody wants to assume all the risks, especially when we're operating at a global level. In summary, we are likely to be among the 4-5 most relevant players in the market, without a doubt. Together with Salvador and team, we want to ensure the fair share, which we already have in the traditional business for the deployment, eSIM, OEM.
Along the time, those new businesses are likely to be replaced in terms of revenues that we post using the traditional chips, and there will be a replacement so that the margin will be a bit better because the platform business is more closer to technology business, and therefore, the unit margin is better than when we compare it to a product whose characteristic is more related to sourcing or more related to commodity, which is what we see in the traditional chips nowadays. Eduardo also asked another question to complement. To help in the projection, especially in the growth phase, would the company consider break down the volumes and other data? As we develop new products and new services, we tend to provide the best visibility to the community of investors, as Ivan mentioned in his presentation before.
This undervaluation that we have today is maybe related to the lack of understanding of what we are doing today. At the same time, considering that some are still in the inception, if we break down too much information, it may generate more complication. So along with the time, we are likely to have spreadsheets with more information, breaking down all the information as we have been doing with other metrics at the company. Two years ago, for example, we did a simple and pure analysis of one income statement or of a balance sheet. Now we are mentioning ROIC. We also mentioned cash generation over EBITDA. So we are including other indicator and other metrics, and we are going to continue to do so as we gain more relevance and importance in those services. So moving on, you may send your question using the chat.
Preston, Gabriel asked a question to you. Do you see any risk of the physical issuance of document that could be no longer obligatory? How can you compare the physical monetization and the digital document issuance in the future? How will the digital document issuance be monetized, and what does it represent to the plan nowadays? Good morning, Gabriel. The first point I would like to mention is related to the topic of considering the physical document ending. So I would say that we would put in a horizon of five years. Of course, in 2050, the model will be different, but in the short run, for us, we do not believe that in the short term, the physical document will end, but it needs to be modernized. We have two sources of identity.
One is the ID document, and I see that it will increase in terms of volume in the next 10 years, as established in the Decree 10,977, enacted by the federal government that establishes the basis for the issuance of IDs. So there's a migration of the document. So in the next 10 years, all the adult Brazilian population will need to issue a new document in order to be compliant with the biometric, biographic standards of interoperability with a single key, and the tax identification will also have an ID. And I see that there's a growth because nowadays, the identity RG does not have a validity period, but after the implementation of this decree, there will be different validity periods, and the maximum period will be 10 years.
Within 10 years, we will have the issuance document of identity for all the population. After this 10 years, there will be a transition from paper to polycarbonate, so there will be a modernization in the IDs. Another front in relation to ID issuance is our driver's license. What are the possibilities for the driver's license format is the following: We already have a major impact, as we have seen in the past, and even mentioned in the beginning of our call, when he mentioned the volumes of driver's license and also the extension or the higher period of validity from 5 to 10 years. So we have already put this into numbers, so there will be a reduction in volume, and we're prepared for that. What can happen to the driver's license? We can have a different movement similar to the ID.
We may have a connectivity of what proves my identity, I have a physical option, I will also have a digital solution. I will talk about how the digital model can be monetized. When we look at documents which are issued, the final product that we can measure in terms of the physical document, when we have the download in our smartphone, when it happens, we see a product which is very complex, that ensures that the citizen made all the onboarding and needs to have their identity recognized, and this can be done at the physical level or at the digital level. Considering the contract that we have from the bidding processes, we have a model that is based in terms of pricing according to issue, but there are some aggregate services.
In the future years, we are likely to have the government demanding different specifications, where little by little, digitization will be part of the contract, and we are going to have the same model of monetization by the unit that you issued. It doesn't matter whether it's gonna be digital or physical, since both are likely to happen. We do one sort of monetization. We are going to use the same service, charged the same way, and it has a big portfolio that involves enrollment of the citizens, hardware, software. As we move ahead and considering the cases that we presented and as we advance, we wonder, how can I prove my identity? So it's a model that we start to use, especially after 2023, in those cases that were presented.
So when there is an identity authentication as a test, a driving test, or when there is a digital onboarding services that needs to prove that the person owns a certain vehicle and can sell that vehicle at the term. So that model is more related on the transactions, and it starts to be more relevant in our revenues.
When we see that 23% of the total revenues are revenues that come from the digital part, the most obvious path in 2023, 2024 and 2025 is to move forward to have more dedicated journeys that will prove the ID to be able to carry out transactions, integrating this with the other two fronts that we have in our portfolio for some time. The issue of the smart cities, that always includes citizens that will have to be authenticated to receive benefits, and the digital signature of the Federal Medicine Council, for example, that held elections in August in a digital way. I think I have been able to respond to all of the questions. Olavo, how this will impact the production plants? Well, the production plants have a very large capacity.
They will be able to provide the volumes that we need for the next coming years. We have the plant capacity as well as software capacity. Allow me to add something, Bressan. The first part of the question, this is a question we hear a great deal about the physical document. When we are dealing with a B2G sale, with the public powers, for example, that product that is being sold is covered by a regulation, of course, and as Bressan mentioned, that transaction has been set forth by legislation. If there will be changes, yes, of course, but changing legislation is more difficult than changing provisional measures. In that ten-year horizon, the documents will be both physical and digital, and this will give greater security to any transaction.
A second important aspect is to see what is happening outside of Brazil, even in the more advanced markets, and we have led some missions with some government missions, especially in the Scandinavian countries and in Estonia, that is well advanced in terms of the digitization of citizens. These citizens, all—These countries also use the physical document because it is a point of authentication when you're accessing health or education, for example. So this has a great deal to do with what Chris and Bressan mentioned, that link of the physical card and your exercise of citizenship, and these two aspects are of the utmost importance, to see what legislation sets forth and of course, base ourselves on the best examples, and the best examples do not point towards the extinction of physical documents. Thank you, Bressan and others.
Now we're going towards our last questions. We have another question from Eduardo that says the following: An increase of TAM of 10 times, and the document is relevant. When will this be reflected in the Valid revenues in 2024? And which is the most promising segment for this increase in TAM? Thank you, Eduardo. Well, we don't have a very specific guidance for 2024 when it comes to the best, figure of revenue that we could have as we penetrate other markets that represent a tenfold growth. What we are going to do is expand the percentage of digital revenues that we have, so that this will be ever-growing in the coming decade. We have another market that we can fight for that involves other fronts.
Fronts where we have gained the capacity to participate in the market, and this shows the potential that Valid has in terms of having a product portfolio that will deliver products to these citizens in their physical and digital journeys. We are gaining space in this market. In 2024, specifically, we want to increase our share from 23% to 25%-27%. The way to do this is very simple. We're getting prepared in-house with architecture, portfolio and technology, to be able to further digitize their journeys, improving the reach of our contracts with the public powers, so that we can deliver an ever greater percentage of revenues as part of the work that Valid does in the IT part. Thank you, Bressan.
We have now come to our last question, and on behalf of everybody here, on behalf of Salvador and Sidney, who are not here, but who did help to make this event come true, we are at your entire disposal for further clarifications, for one-on-one meetings or group meetings. Our IR channel is ir.valid.com. I hope you have enjoyed this, and we wish you all a very good afternoon.