dLocal's Emerging Perspective - August 2023

The time has arrived to serve you another piping hot cup of payment trends in emerging markets. Big news from around the world: the Central Bank of Brazil has granted dLocal its Financial Institution License, the Central Bank of Nigeria is making strides in remittance, and it looks like India’s UPI is in Europe to stay!

Stay updated on the latest news at dLocal, payments, and beyond.

Happy Reading.

Industry Insights

Nigeria enables diaspora remittances in Naira

Nigerians can now receive diaspora remittances in Naira following the Central Bank of Nigeria’s lifting of a three-year ban on Naira remittances. In addition to the existing options of dollars and eNaira, Nigerians now have the choice to receive their proceeds in Naira.

Forecasted remittance inflows in Nigeria are expected to reach $26 billion by 2026. Two years ago, Nigeria emerged as the second-highest recipient of diaspora inflows, receiving $20.1 billion. Only Egypt, with $28.3 billion, outperformed Nigeria.

Reach out to learn more about business opportunities in Nigeria

India’s UPI is expanding its global reach?

The Unified Payments Interface (UPI), India’s instant payment system, has solidified its position as the most popular method for online payments within the country. It recorded a staggering 9.96 billion transactions in July alone. The projection for UPI transactions is equally remarkable, with an estimated surge to 1 billion per day by 2026-27, constituting 90% of India’s retail digital payments.

Demonstrating its international potential, UPI was launched in France in July, and India and Sri Lanka have entered into an agreement to implement the UPI payment mode jointly.

For more insights into UPI and how it can be integrated into your operations, feel free to contact us

Brazil names its digital currency DREX?

Scheduled for 2024 and also known as the digital real, DREX is expected to increase access to the Brazilian population's financial services.?

“The acronym combines several elements of innovation: the D for digital, R for real, E for electronic, and X for transaction, taking a step further in this family of Pix that we created and was a success,” said Fábio Araújo, coordinator of the digital real, during a live broadcast on the Bank's YouTube channel.

Stay on top of Brazil’s payment trends and learn how dLocal can help your business drive successfully

How gamers play and pay in emerging markets?

In emerging markets, gaming has presented a significant opportunity: with the ongoing rise in smartphone adoption, mobile gaming has become a force in the gaming industry.??

With a smartphone penetration rate of 70.9%, India has facilitated the boom of the mobile gaming ecosystem, boasting over 179 million mobile gamers. Meanwhile, the entire African continent is projected to witness a surge of 310.6 million mobile gaming users by 2027. And in Latin America, where smartphone penetration exceeds 80%, mobile gamers are projected to grow by 12 million users by 2027.?

Seize the opportunity in the gaming industry across emerging markets worldwide.?

?Download the whitepaper and press start on your expansion journey?

dLocal Highlights

dLocal welcomes its new co-CEO, Pedro Arnt?

We are excited and proud to announce the appointment of Pedro Arnt as new co-Chief Executive Officer and member of the Board of Directors of the Company, alongside Sebastián Kanovich.

Pedro, former MercadoLibre CFO, has extensive leadership experience in the tech sector.?

“Emerging Markets are complex, but I firmly believe that together we will propel dLocal's trajectory, navigate technological, operational, and regulatory complexity and further unlock returns for all stakeholders involved.”

Read the full PR article here.?

dLocal licensed by Brazil’s Central Bank as a payments institution

dLocal has successfully obtained the payments Institution license from the Central Bank of Brazil, marking a crucial milestone in its commitment to facilitating financial services for our merchants.

Similar to the European e-money issuer license, this license enables dLocal to accept public deposits, manage eWallets, and directly participate in Brazil's payment systems, including Pix. Additionally, dLocal attains the status of a 'Payments Transactions Initiator,' enabling access to Brazil's new Open Banking Initiative and facilitating third-party Pix payments.?

Contact us to learn more about our solutions in Brazil

Second quarter 2023 financial results

We are proud to share another quarter of our financial results and are even more excited about the runway ahead:

↗ Total Payment Volume grew 80% YoY to US$4.4 billion

↗ Revenue increased 59% YoY to US$161 million?

↗ Gross Profit of US$71 million?

↗ Adjusted EBITDA of US$52 million

To watch the entire 2Q23 Earnings Call, click here.?

Events

dLocal at Payments Ed: unveiling the future of global payments

Together with HBO’s Sr. Product Manager Peter Kovacs, dLocal’s Business Development Manager Adrielle Andrade shared valuable insights into payments in Latin America, Africa, and Asia. A seamless cross-border payment integration for global businesses is possible.?

Reach out to talk to one of our payment experts in your region

dLocal at Shanghai’s ChinaJoy?

China's gaming industry achieved a revenue of 144.3 billion yuan (US$20.0 billion) during the first half of this year. Notably, Shanghai stood out by producing a quarter of high-earning mobile games.?

With a daily attendance of about 75,000, dLocal had the opportunity to connect with industry leaders and gamers at the latest ChinaJoy event held in Shanghai, recognizing the significance of this dynamic sector within the payments landscape.

Did you have the chance to say Hi ???? to our team?

We are committed to showing our local expertise all around the world. Let's get together to think outside the box for new, tailor-made payment solutions.

Where to meet us next Check out upcoming events, and make sure to meet us in person whenever we are in town

- Gamescom

August 23 - 27, 2023 - Cologne, GER

- MAG Annual Conference and Tech Forum??

September 10 - 12, 2023 - Atlanta, USA

- Seamless Africa

September 19-20, 2023 - Johannesburg, SA

- dLocal Connect??

September 27, 2023 - London, UK

? - Money 20/20 Las Vegas?

October 22-25, 2023 - Las Vegas, USA

Check out our events calendar for more details?

dLocal Connect

Connect is dLocal’s flagship event, creating a unique space where leading companies and high-level executives gather together to share insights on how we can create easy access to payments in markets such as Africa, Asia and Latin America, despite quite challenging market dynamics. Take a glimpse of the 2023 editions in?Punta del Este?and?Singapore.

Next edition: dLocal Connect London 2023