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Welcome to an engaging discussion with two influential figures in the global payments industry: Veronica Studsgaard, Founder and CEO of the International Association of Money Transfer Networks (IAMTN), and Pedro Arnt, the current CEO of dLocal. In this exclusive interview, Veronica sits down with Pedro to explore the dynamic landscape of cross-border transactions and the impressive journey of dLocal under his leadership. dLocal has established itself as a pioneering force in emerging market payments. With its landmark move to go public in 2021, the company has formed strategic alliances with major multinational tech giants, positioning itself at the forefront of transforming the global payments landscape. Veronica delves into Pedro's illustrious background, including his decade-long experience at MercadoLibre, where he played a crucial role in scaling the company from a startup to a powerhouse with a market cap exceeding $100 billion. His deep understanding of Latin America's technological ecosystem and passion for the scale-up phase of company growth have been instrumental in his leadership journey.
Join Veronica as she uncovers the origins of dLocal, its impressive growth trajectory, and the challenges it faces in the public markets. Discover Pedro's vision for the future of global payments and how dLocal plans to navigate the evolving financial landscape. This conversation promises to offer valuable insights into innovation, strategy, and the relentless pursuit of success in the ever-evolving world of finance.
Veronica: Pedro, could you share some insights into your background and the journey that led you to become the CEO of dLocal?
Pedro: I've been fortunate to be part of significant technology company growth journeys in LATAM, where balancing innovation, customer focus, and structured processes was key to long-term success. My decade-long experience with MercadoLibre, where we grew from a start-up to a company with a 100B+ market cap, gave me invaluable insights into navigating emerging markets. It also taught me that what I enjoy most is the scale up and high growth phase of company building.
That experience, combined with the fact that I see a tremendous asset in dLocal, with a fantastic market opportunity, right culture and attractive financial business model, made joining an incredibly unique opportunity. I am thrilled to be here and super encouraged by everything we are building for our merchants and partners.
Veronica: Let's take a trip back to the beginning of dLocal. Can you share the initial inspiration or vision behind starting the company and how that vision has evolved over the years?
Pedro: The initial inspiration behind dLocal was to help global merchants accept payments in emerging markets, where the payments ecosystem is highly fragmented, and hence traditional payment systems often overlook millions of consumers. Our founders saw the difficulties businesses faced when expanding into these regions—such as navigating local regulations and managing diverse payment methods and currencies—and set out to create a solution that would simplify cross-border payments through a single, unified platform.
While our core mission of connecting global companies with consumers in emerging markets remains the same, we’ve evolved to meet the growing needs of our clients. Beyond payments, we now offer services like gateways, fraud prevention, invoicing, and tailored platform solutions, always focused on delivering the best possible experience.
Today, dLocal is more than a payment provider—we’re a strategic partner helping businesses unlock growth in emerging markets, continuously innovating to make global commerce accessible to all.
Veronica: Thinking back to the early days of dLocal, what was the key proposition or solution that the company offered its clients, and how has that evolved over time?
Pedro: In the early days, dLocal’s key proposition was to provide a unified platform that allowed global companies to accept local payments in emerging markets, simplifying the complexities of cross-border transactions. Our initial focus was on enabling merchants to accept payments like local credit cards, bank transfers, and cash-based payments that are common in these regions.
As we’ve grown, our offerings have expanded beyond pay-ins to include payouts, fraud management, invoicing, and platform solutions. Today, dLocal provides a complete end-to-end payment solution, allowing businesses to operate more efficiently and scale in emerging markets. Our evolution is driven by the goal of helping our clients navigate the unique challenges of these markets and unlock new growth opportunities.
Veronica: dLocal has been on quite a growth journey recently. Could you give us a snapshot of where the company stands in terms of market share today and share some insights into the key factors that have driven this success?
Pedro: dLocal’s growth has been substantial across several key verticals, including remittances, which grew 82% year-over-year in Q2 2024. This strong performance contributed to a total payment volume (TPV) of $6 billion for the quarter, marking a 38% year-over-year increase despite a stellar comparison base. Remittances, along with commerce (46% growth), ride-hailing (51%), and SaaS (72%) have become significant drivers of our diversified growth.
A significant factor behind this success is our focus on serving verticals, such as remittances, which are crucial for cross-border transactions in emerging markets. Our platform’s adaptability to local regulations, combined with strong partnerships and localised payment solutions, allows us to offer tailored services across regions. By staying aligned with client expansion needs and continuously innovating our payment solutions, dLocal has been able to sustain long-term growth and solidify its leadership position in the cross-border payments space.
Veronica: Looking back on dLocal's journey, what are some of the big opportunities you feel might have been missed or challenges the company has faced, and how did you navigate through those moments?
Pedro: I think we've done a great job capturing many of the opportunities in front of us that have led us to become a leader across emerging market payments for global enterprise merchants. Having said, we could have expanded into Asia, where we are now growing, but coming from very behind. I also think we need to accelerate the pace of product innovation to build more innovative payment related products and solutions to offer our merchants.
Veronica: When it comes to deciding which markets to enter or expand into, how does dLocal make those choices? What are the key factors or criteria you consider when evaluating new market opportunities?
Pedro: When determining which markets to enter or expand into, dLocal’s approach is deeply rooted in our close relationship with merchants. We listen attentively to their needs and expansion goals, using their insights to shape our product roadmap and market strategy. Our merchants' demand for local solutions directly influences the markets we prioritize, ensuring that our expansion aligns with their growth.
We also evaluate market size and growth potential, focusing on regions with large populations, growing eCommerce and increasing digital payment adoption. Understanding the regulatory environment is crucial, allowing us to navigate local laws and compliance requirements effectively. In addition, we work closely with local teams to assess the dominant payment methods and infrastructure to ensure our solutions meet the needs of both businesses and consumers.
Beyond this, we consider factors like currency stability and the overall economic health of a region. But above all, our clients' demand and expansion needs are the driving forces behind our market selection. By staying close to our merchants and developing local partnerships, we ensure that dLocal’s market entry strategy is both responsive and well-suited to each region’s unique landscape.
Veronica: When you look at the rise of new payment methods in emerging markets, what trends are catching your eye in the global payments' scene? And how does dLocal keep ahead of the curve with these changes?
Pedro: In emerging markets, we’re witnessing rapid adoption of alternative payment methods (APMs) and instant payment solutions, with remittances playing a critical role in cross-border transactions. Systems like Brazil’s Pix are revolutionising how payments are made, offering instant and accessible transfers for both individuals and businesses. This trend is reshaping the landscape, particularly in regions where traditional banking infrastructure is less dominant.
A second trend is the increased demand for transparency and compliance across the complex emerging market footprint we cover. We've invested a lot recently in growing our license and registry portfolio and in continuing to make sure that our single platform offers our merchants a regulatory layer that ensures compliance and transparency across all markets they operate with us. At dLocal, staying ahead of these trends is a core priority. We maintain a local presence in every market we serve, which enables us to stay attuned to evolving payment preferences and regulatory shifts. By closely monitoring these trends and fostering local partnerships, we are able to quickly integrate new APMs and instant payment systems into our platform, ensuring our clients always have access to the most relevant and efficient payment methods for each region.
Veronica: Thinking about the future, what are some of dLocal's plans for growth and expansion? How do you see the company shaping the future of global payments?
Pedro: dLocal focuses on expanding our reach in existing and new high-potential markets. Emerging markets continue to present a vast opportunity for growth, driven by increasing digital adoption and evolving financial ecosystems. We aim to be at the forefront of this growth, helping global businesses tap into these regions by offering seamless, localised payment solutions.
A key priority is expanding our platform to support a wider array of payment methods, currencies, and advanced technologies like AI and data analytics. This will allow us to provide more personalised, efficient, and secure payment options, ensuring we meet the evolving needs of our clients as they grow globally.
As we continue to scale, we see dLocal playing a pivotal role in shaping the future of payments, particularly in emerging markets. Our vision is to bridge the gap between global businesses and these fast-growing regions, driving financial inclusion and enabling cross-border commerce at an unprecedented scale.
Veronica: Pedro, thank you very much. It’s been a real pleasure having this conversation with you. Your insights into dLocal’s journey and the future of global payments have been incredibly enlightening. I’m really looking forward to continuing the collaboration between IAMTN and dLocal.
Pedro: Thank you, Veronica. It’s been wonderful to share dLocal's vision and discuss the exciting developments in the payments industry. I’m equally enthusiastic about working together with IAMTN to drive innovation and growth in this space. Let's keep pushing boundaries and making a positive impact.
Veronica: Absolutely! And I’m looking forward to meeting the dLocal team in Dubai and attending the IAMTN Summit that's soon approaching. It’s going to be a fantastic opportunity for further collaboration and inspiration.
Pedro: That sounds great, Veronica. We’re excited to welcome you and to engage in more fruitful discussions at the summit. Thanks again, and see you in Dubai!
Veronica: See you soon, Pedro! Take care!
