Everybody’s flockin’, but the access to international credit cards ain’t all that in certain neck of the woods. Global businesses are lookin’ to expand into some majorly populated countries like India, Nigeria, and Indonesia. But good golly, only a small chunk of folks in these places got themselves a credit card. In Nigeria, a country on the rise in terms of population, a measly 3% got them plastic money. Ain’t that a kicker? This makes it mighty tricky for global businesses eyeing these markets.
dLocal (Nasdaq: DLO), a technology-first payments platform, smoothes out this wavy road by connectin’ the dots between consumers in emerging markets and global enterprise businesses. Using their cross-border payment products, dLocal makes bustin’ into them emerging markets a cakewalk and unleashes global enterprise access for the folks in those markets.
In September 2020, dLocal made history by becoming Uruguay’s first unicorn with a valuation of $1.2 billion – just four years after the startup was founded. Following this achievement, the financial technology company listed on the Nasdaq Stock Exchange in June 2021 raising $617.65 million in its initial public offering. Today, dLocal is revolutionizing payment processing solutions around the globe.
“As technology becomes more ingrained in every single process, if we don’t ensure that billions of people have access to the latest technology, then the gap between the developing world and developed world will only get worse,” said Pedro Arnt, Co-CEO at dLocal.
The Bright Side for Businesses
Emerging markets lean towards Alternative Payment Methods (APMs) when it comes to handling their dough. APMs are any form of payment that isn’t a major international credit card like MasterCard, Visa, or Amex. Think digital wallets like Apple Pay or Google Pay, mobile money, or a mix of digital payments and good ol’ cash.
Since the majority of folks in these emerging markets crack open their digital wallets for payments, global businesses need a way to scoop up payments from these digital platforms. The pickle for businesses is the whole shebang of hyper-localized payment systems and consumer behaviors for each market. But dLocal? It fixes all that fuss over legal, tax, and regulatory matters across 40 markets spannin’ Latin America, Africa, and Southeast Asia. Arnt sums it up,“We make extremely complex emerging markets accessible and simple to global merchants through a single sophisticated API [application programming interface].” dLocal’s all-in-one payment process ensures a seamless and secure experience for its customers, no matter their location.
With 17 office locations, including in Nigeria, India, Singapore, and Brazil, dLocal can also pin down consumer behaviors to help international businesses spread their wings in diverse regions. For instance, businesses eyeing Indonesia and Africa need to get the lowdown on potential consumers in each market. According to dLocal, an Indonesian consumer makes use of an average of three digital wallets, but over in Africa, mobile money accounts rule the roost with over 780 million registered accounts.
In 2021, dLocal hopped into the ring with Amazon (Nasdaq: AMZN) to announce that non-domestic merchants could hawk their wares in the Brazil Amazon online store thanks to dLocal’s marketplace solution. The partnership also enabled Amazon to pay its vendors in U.S. dollars. And in 2022, dLocal announced a strategic partnership with BigCommerce (Nasdaq: BIGC), granting its merchants the green light to gobble up local payments in Latin America for the first time. dLocal’s global customers also include Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG).
Looking to the Future
Watching, waiting, expanding into new markets and offering fresh services, dLocal is committed to ensuring that each and every one of their products is tip-top to the compliance standard of each specific market. In 2023, the company got the thumbs up with payment service licenses for Kenya, Rwanda, and Nigeria and a payment institution license from the Central Bank of Brazil.
Arnt’s got his eyes set on broadening the portfolio of licenses around the globe. He said, “All of these incremental licenses allow us to offer more products and more services to our global merchants in each of these markets.”
In addition to offering payment collection services in emerging markets, dLocal can also be the money guy for emerging market consumers. “We heavily inform our product roadmap based on our merchants’ needs,” said Arnt. For example, if a ride-hailing service was up and running in an emerging market and needed to pay its drivers, that company can come to dLocal for a solution, dLocal for Platforms, which allows for local disbursements to tens of thousands of gig economy workers.“
dLocal for Platforms simplifies the complex process of distributing payments to users located around the globe and offers a seamless onboarding process. “This has become a new product vertical for us,” said Arnt. “As a matter of fact, it was the fastest growing product in our portfolio during Q3. We are continuously innovating on behalf of our merchants to solve their problems in emerging markets.”
dLocal continues to innovate and expand into new markets around the globe. Southeast Asia and parts of the Middle East are the next frontier for the company. Meanwhile, its mission continues to be bridging the gap between emerging markets and global businesses. “It’s just deeply ingrained in our DNA. That’s who we are. We are a global organization that’s set up to meet global needs across multiple geographies,” said Arnt.
To learn more about how dLocal is Reimagining Tomorrow, please visit their website.