Exceptional Q1 2025 performance by dLocal, as disclosed by CEO Pedro Arnt
In a recent interview, Pedro Arnt, CEO of dLocal, discussed the company's strategies for scaling cross-border payments in underpenetrated regions and preparing for the next wave of global trade transformation.
The interview came on the heels of dLocal's impressive Q1 results, which saw a 18% year-on-year (YoY) increase in revenue to $217m, a 36% increase in constant currency. Notably, Adjusted EBITDA increased by 57% while net income surged 163% YoY to $47m.
A key element of dLocal's strategy is an extensive network of local payment methods. The company offers access to over 900 local and alternative payment methods (APMs) including credit cards, bank transfers, eWallets, real-time payments, and cash-based alternatives. This diversity supports regional preferences and compliance requirements, facilitating smoother payment flows in underpenetrated regions like Africa, Asia, and Latin America.
To further enhance its capabilities, dLocal has entered into strategic partnerships. One such partnership is with Juspay, an advanced payment orchestration platform. This collaboration enables a single integration point for global enterprises, simplifying B2B2B and B2B2C collections, disbursements, and cross-border payments. The union enhances the ability to navigate diverse regulatory and technological environments while expanding reach in fast-growing markets.
dLocal has also expanded its alliance with PayPal to cover over 40 emerging markets worldwide. This partnership allows merchants to process cards and local payment methods without the need for local incorporation, reducing technical barriers and accelerating entry into complex, high-growth markets.
These strategies demonstrate dLocal’s commitment to scaling payments by combining robust local acquiring infrastructure, broad payment method coverage, and seamless technology integration. This positions dLocal to empower global merchants to scale efficiently, comply with local regulations, and capture new customer segments in emerging markets—key to preparing for the evolving landscape of global trade and digital commerce.
Despite some softness in two of its core markets, Brazil and Mexico, key markets such as Chile, Nigeria, Pakistan, and Turkey contributed to the expansion, particularly in high-growth verticals like remittances, financial services, and streaming. Total payments volume (TPV) grew by 53% to $8.1bn in Q1, with cross-border volumes rising 76% to $4.3bn, outpacing local volumes.
dLocal reaffirmed its annual guidance for FY revenue to rise between 25% and 35% to $932m-$1bn. The company's share price also rose in response to its Q1 results, reflecting investor confidence in its long-term potential in emerging markets and localisation.
As the world prepares for the next wave of global trade transformation, dLocal is positioning itself to capture cross-border opportunities in frontier markets, leveraging its extensive network, strategic partnerships, and technological integration. The company sees long-term potential for emerging markets, driven by global trade shifts and ongoing tariff discussions.
- Pedro Arnt, the CEO of dLocal, discussed how their strategic collaborations, like the one with Juspay and PayPal, are essential for enhancing dLocal's capabilities in navigating diverse regulatory and technological environments, and expanding reach in fast-growing markets, particularly in underpenetrated regions such as Africa, Asia, and Latin America, thus facilitating digital commerce and global trade.
- As the company prepares for the next wave of global trade transformation, dLocal, with its extensive network and strategic partnerships, is leveraging technology to capture cross-border opportunities in frontier markets, aiming to empower global merchants to scale efficiently, comply with local regulations, and tap new customer segments in emerging markets, which is crucial for success in the evolving landscape of business, finance, and technology.
