PagSeguro: Capitalising on LatAm’s E-Commerce Boom
Today, PagSeguro is positioning itself as a key player in LatAm’s e-commerce space, capitalising on the region's digital transformation and burgeoning fintech sector.
With a focus on alternative payment methods and a strategic expansion into new verticals, the Brazil-headquartered payment gateway is eyeing aggressive growth across the continent.
At Money20/20 Europe this year, we spoke to Clarena Furtado, Head of Sales Americas & EMEA at PagSeguro about this growth journey.
PagSeguro: Growing with e-commerce
Latin America's e-commerce market has seen explosive growth in recent times, with transaction volumes reaching US$272bn, which PagSeguro has been able to achieve growth alongside.
This surge has caught the attention of global investors and businesses alike. Clarena Furtado, Head of Sales Americas & EMEA at PagSeguro, notes the increasing interest in the region: “We are getting a lot of interest in Latin America for 2023. Many new verticals are entering the market, including sports betting, which Europe used to dominate but is now gaining traction in LatAm.”
With local operations in Brazil, Mexico, Peru, Chile and Colombia, PagSeguro offers end-to-end payment gateway solutions tailored to the region's unique needs. “Based on our expertise in the region, we are able to provide our merchants with a comprehensive payment gateway solution,” Clarena explains. “We've been in the market for over 20 years, and now that we've diversified into various verticals, we're gaining recognition as a tier-one provider for LatAm.”
One of the key drivers of PagSeguro's growth is the rising popularity of alternative payment methods in LatAm. Real-time payment solutions, in particular, have seen remarkable adoption rates, with Brazilian instant payment system PIX achieving unprecedented success. “Six out of 10 people in Brazil use PIX as their payment solution," Clarena reveals. “We already have 107 million PIX accounts, and 39% of electronic payments in Brazil are made through PIX. This is incredible for a system launched just three or four years ago.”
The success of PIX has inspired similar initiatives across the region. Colombia has introduced PSE, while Mexico has implemented CoDi and SPEI. Additionally, e-wallets are gaining traction, with solutions like Nequi in Colombia and BIMO in Argentina offering user-friendly alternatives to traditional banking.
LatAm: Narrowing the innovation gap
PagSeguro is also capitalising on the narrowing innovation gap between LatAm and more established markets like Europe and the US. Clarena observes: “The gap in digitalisation between regions like Europe and Latin America is shrinking. With a young population that is mobile and internet-enabled, we're seeing newer generations embracing digitalisation much faster.”
This rapid adoption of digital technologies is enabling the quick rollout of innovative financial products. “Buy now, pay later (BNPL) is becoming a big trend in LatAm,” Clarena notes. “It was popular in Europe for a while, then in the US, but now Latin America is embracing it simultaneously. We're seeing companies actively working on this in Mexico and Colombia.”
To fuel its growth, PagSeguro is diversifying beyond its traditional focus on video gaming. The company is expanding into sports betting, ride-hailing, retail and travel sectors. This strategy aims to cater to a broader range of international businesses looking to enter the LatAm market.
The company's growth targets are ambitious, with Clarena revealing: “We have very aggressive growth rates that surpass 50%.” To achieve these goals, PagSeguro is actively seeking partnerships with European merchants at events like Money20/20 Europe and plans to engage with US businesses at Money20/20 USA later in the year…
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