dLocal's evolving revenue composition
In a strategic move to cater to the growing demand for pay-out services, dLocal, a leading cross-border payments provider, shifted its focus towards pay-outs in 2024. This strategic move paid off, as the company reported a significant increase in cross-border volumes and expansion into new markets.
The fourth quarter of 2024 saw dLocal's cross-border volumes surge 67% year-over-year, reaching a record high of $7.7 billion. This growth was driven by several key factors, including strong Total Payment Volume (TPV) growth, the expansion of payment licenses, and strategic partnerships.
During Q4, dLocal reported record TPV of $7.7 billion, up 51% year-over-year (YoY) and 18% quarter-over-quarter (QoQ). This significant expansion in cross-border transactions indicated a robust growth in the company's business.
In mid-2025, dLocal obtained new payment licenses in the UAE, Turkey, and the Philippines. This allowed the company to facilitate local pay-ins and pay-outs, partner with domestic fintech firms, and enable direct remittances in these emerging markets, thereby broadening its cross-border payment network and customer base.
dLocal also partnered with Juspay, a digital payments platform, to leverage their combined expertise and technology. This collaboration aimed to simplify cross-border payments and offer customers localized, seamless payment experiences, enhancing dLocal's capabilities and market reach across emerging markets.
Looking ahead to 2025, dLocal plans to maintain and accelerate this growth by continuing to expand its licensed market footprint, leveraging its simplified global payment platform, and forging new strategic alliances. The company's "One dLocal" platform model provides a single API, platform, and contract to global enterprise merchants, simplifying cross-border payment acceptance, pay-outs, and fund settlement without managing multiple local processors.
Despite the decline in dLocal's take rate in 2024, due in part to the company's expansion efforts, the company's revenue still saw a 15% increase year-over-year, reaching $746 million. Remittances and financial services, as well as commerce, were major contributors to dLocal's revenue growth in 2024. These sectors, along with the company's strong performance in countries like Argentina, Egypt, and Mexico, contributed to dLocal's resilience and growth.
In conclusion, dLocal's cross-border volume growth in Q4 2024 was driven by strong transaction volume expansion, regulatory license acquisitions in key emerging markets, and partnerships that enhance payment capabilities. The company plans to maintain and accelerate this growth in 2025 by continuing to expand its licensed market footprint, leveraging its simplified global payment platform, and forging new strategic alliances.
- The robust growth in dLocal's business, as evidenced by the surge in cross-border volumes, has opened up opportunities for further expansion into new markets, particularly in technology-driven areas such as finance and business.
- To cater to the growing demand for pay-out services and maintain its growth trajectory, dLocal is planning to leverage its technology-enhanced payment platform by forging new strategic alliances and expansion into more markets, focusing on business sectors like finance and technology.
