Christian Schwarzer Velazquez @Khrix69: "💳✨ $DLO: The Hidden Gem..."

Spain

💳✨ $DLO (dLocal Ltd.): The Hidden Gem of the Payments Sector 🌍💵 The payments sector is famous for its well-known players $V (Visa), $MA (Mastercard), $ADYEN.NV (Adyen NV) $FISV (Fiserv Inc), and in private equity, Stripe, but few talk about $DLO $DLO is a company I love; it has all the parameters I look for in a company for my portfolio: Market leader with few players. Young company. Market cap under $20 billion. FCF per share growth above 20%+. Operating leverage increasing margins. Asset-light. High entry barriers in a highly complex environment due to strict regulations. Emerging markets with growth. Exquisite valuation. Recurring revenue in the form of commissions for each executed payment. Huge and expanding TAM. $V and $MA are known for charging merchants commissions — stable revenues, wonderful tech companies, but mature and established. $ADYEN.NV is the clear disruptor in the West, positioning itself as the most efficient payment method for major companies like $SPOT (Spotify Technologies SA), $NFLX (Netflix, Inc.), $MSFT (Microsoft), and $UBER (Uber Technologies Inc.) — meaning, when you order an Uber or pay your Netflix or Spotify subscription, it’s $ADYEN who processes that payment and takes a commission. Stripe isn’t public but focuses on offering payment services to small businesses and freelancers, unlike $ADYEN.NV which focuses on large Western corporations. $FISV $FOUR (Shift4 Payments Inc) and $TOST (Toast Inc.) focus on integrating hardware and software into payment terminals (POS) with specialized software — meaning payment terminals for restaurants, hotels, casinos, stadiums, and retailers where a physical terminal is needed to process payments. And then we have our beloved $DLO $DLO basically does the same as $ADYEN.NV — processing client subscriptions and payments — but focuses exclusively on emerging markets where $ADYEN.NV hasn’t wanted to enter due to the high operational costs, volatile currencies, and fierce regulatory environments, making them far more difficult to navigate. This is where $DLO comes into play and has positioned itself as the leader in this segment of cross-border payments in emerging markets. If you live in Mexico and have a $SPOT subscription, it’s DLocal that processes that payment and takes a commission. They started in Latin America but are now expanding into Africa and Asia. The geographic positioning and its specific know-how in emerging markets give it its biggest competitive advantage. Having the first-mover advantage in these areas means companies are already comfortable and familiar with DLocal, and the switching cost if $ADYEN.NV wanted to enter these markets would be high. Changing what already works is rarely a good idea. Each emerging country has different rules, restrictive central banks, and highly local payment methods (Pix in Brazil, OXXO in Mexico, M-Pesa in Kenya, etc.). For Adyen, whose model is based on a unified and directly controlled global infrastructure, integrating country by country breaks its model. And this is where $DLO is specialized. Adyen was born as a unified global infrastructure — centralized and homogeneous — while DLocal was born to navigate local chaos with flexible APIs and specific banking connections. ADYEN is a company I love and it’s always on my watchlist. In April it almost made it in, but instead, I added $DLO because I saw much more potential both qualitatively and quantitatively; since then, it’s been +22% for ADYEN and +100% for $DLO. Clearly, I wasn’t wrong. While I expect $ADYEN.NV to enter some of the main emerging countries, I don’t think it will go much further — where $DLO will remain king for many years. All this with Pedro Arnt at the helm, who thinks long term, sacrificing the short term for the long term, as he learned well during his 12 years as CFO at $MELI (MercadoLibre Inc) $DLO is still early — the best is yet to come. Best regards, Christian $SPX500 $NSDQ100 $BTC