DLocal Limited (DLO): Business Model Canvas [Dec-2025 Updated]

As someone who has spent two decades dissecting payment processors, you know that true scale in emerging markets isn't about volume alone; it's about solving the local mess. That's exactly what DLocal Limited (DLO) does with its single API, connecting global giants to over 900 local payment methods across 40+ markets. While their Q3 2025 Total Payment Volume hit a staggering US$10.4 billion, and merchant stickiness is clear with a 149% Net Revenue Retention rate, the real story-the one that keeps analysts like me up at night-is the net take rate ticking down to 0.99%. Dive into the full Business Model Canvas below to see precisely how DLocal Limited (DLO) balances this high-growth, high-complexity operation and where the next dollar of profit will actually come from.

DLocal Limited (DLO) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem DLocal Limited builds its business on-it's not just about the tech; it's about who you connect with on the ground and globally. Honestly, the strength here is the breadth of local integration.

Local banks and acquirers for in-country payment processing

DLocal Limited's core value proposition relies on deep integration with local financial infrastructure. The "One dLocal" concept means global companies don't have to manage setting up numerous local entities or integrating multiple acquirers in every jurisdiction. This network allows DLocal to offer access to more than 900 payment methods across over 40 countries. For context on the scale these partnerships support, DLocal's Total Payment Volume (TPV) reached $10,390 million in the third quarter of 2025.

• The platform simplifies cross-border transactions by using local acquirers to process domestic payments, which helps improve transaction approval rates for merchants.
• Specific local regulatory compliance is managed through local entities, such as Demerge Nigeria being regulated by the Central Bank of Nigeria.

Global technology platforms like Stripe, PayPal, and Adyen for integration

Integrating with DLocal Limited allows major global platforms to instantly access emerging markets without building out local processing themselves. DLocal expanded its relationship with PayPal (Enterprise Payments, formerly Braintree) to offer payment processing and local methods in more than 40 new untapped emerging markets. This means PayPal's enterprise clients can leverage DLocal's local acquirers for B2B and B2C flows. To give you a sense of the scale of these global platforms, Stripe processed $1.4 trillion in TPV in 2024, and Adyen processed €1.29 trillion in the same year.

Strategic fintech partners like Circle and BVNK for stablecoin services

DLocal Limited is actively building a new layer of financial interoperability using digital assets. The partnership with BVNK, a stablecoin payments infrastructure provider, enables faster, programmable global payouts by connecting blockchain-native value transfer with regulated, fiat-based local settlement rails across 40+ markets. This pilot integration is expected to launch in the second half of 2025. Also, DLocal joined the Circle Payments Network in November 2025 to further power stablecoin payouts across emerging markets.

Remittance and wallet providers (e.g., Belmoney, AZA Finance) for network expansion

Remittances are a high-growth area for DLocal Limited, driven by the shift from cash to digital wallets and bank transfers. The partnership with Belmoney, Europe's first Remittance-as-a-Service (RAAS) provider, leverages DLocal's network supporting over 900 local and alternative payment methods (APMs). This is critical because the global average remittance cost remains high at 6.5%, far from the UN target of 3%. DLocal currently operates in 14 countries in Africa, where Africa and Asia combined generated revenue of about $48 million in Q3 2025, making up 17% of total company revenue.

Buy Now, Pay Later (BNPL) providers for 'BNPL Fuse' product integration

The launch of BNPL Fuse, the first BNPL aggregator built for emerging markets, centralizes access to multiple local providers through a single API and contract. The initial partners integrated include Kueski, Pagaleve, Atome, Pareto, and Payflex. This solution allows merchants to instantly offer flexible installments in an initial eight countries, aiming to reach over 500 million underbanked buyers. DLocal estimates that merchants not offering BNPL risk losing up to 66 per cent of potential conversions in these regions.

Here's a quick look at the scale of DLocal Limited's reach through these key integrations as of late 2025:

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Key Activities

You're building a global payments infrastructure, so the core activities have to be about scale, compliance, and technology integration. Here's the quick math on what DLocal Limited is actively doing based on late 2025 figures.

Developing and maintaining the 'One dLocal' unified API platform

The platform is the engine, simplifying complexity for global merchants. This single integration allows access to a massive network. The platform enables seamless access to over 900 local payment methods across more than 40 geographies in Africa, Asia, the Middle East, and Latin America. For example, the popular global e-commerce marketplace Temu is leveraging DLocal to reach customers in 15+ emerging markets. This abstraction layer is key to their value proposition.

Securing new local licenses and ensuring regulatory compliance across 40+ markets

Regulatory navigation is a constant, resource-intensive activity. The company's geographic reach is substantial, covering more than 40 geographies. This requires securing numerous local licenses to operate legally and compliantly in each jurisdiction. The breadth of this compliance work is what allows them to offer the extensive payment method coverage.

Processing high-volume cross-border and local-to-local pay-in/pay-out flows

Processing volume is hitting new records, showing the core activity is scaling effectively. Total Payment Volume (TPV) reached $10.4 billion in the third quarter of 2025, growing nearly 60% year-over-year. Cross-border volumes are a significant driver, growing 75% in Q2 2025 compared to local-to-local volume growth of 35% in the same period. Cross-border flows accounted for over 50% of volumes for the second quarter in a row in Q2 2025. Still, pay-ins remain the majority, with 69% of volumes coming from pay-ins in Q2 2025.

Here are the top-line financial results that reflect this processing activity for the third quarter of 2025:

Expanding alternative payment methods (APMs) like Pix and e-wallets

The focus is heavily on local preferences, which means integrating non-card methods is a critical, ongoing task. This expansion is vital because local methods are the primary way people pay. For instance, Pix in Brazil is projected to surpass credit cards in eCommerce use by 2025. Also, eWallets are now used by roughly 60% of the LATAM population, accounting for nearly half of all eCommerce payments in key markets like Argentina. DLocal actively launched a new Pix-based solution, SmartPix, in Brazil.

Key APM integration activities include:

• Integrating the new Pix-based solution (SmartPix) in Brazil.
• Facilitating the growing share of payments from local wallets across Latin America.
• Integrating Buy Now, Pay Later (BNPL) solutions across global merchants.
• Active partnerships with Circle and BVNK for stablecoin settlement.

Investing in technology and sales/marketing (operating expenses grew 28% YoY)

Investment in capabilities is clear in the expense structure. Operating expenses grew by 28% year-over-year in Q3 2025. This growth was driven mostly by salaries and wages, specifically in the sales & marketing and technology functions. Technology and development expenses for the nine months ended September 30, 2025, totaled $22.991 million (thousands). Sales and marketing expenses for the same nine-month period were $20.116 million (thousands).

The breakdown of operating expense growth drivers in Q3 2025 was:

• Salaries and wages increase across key departments.
• Higher third-party services spend.
• Investment in sales & marketing headcount.
• Investment in technology headcount.

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Key Resources

You're looking at the core assets that let DLocal Limited operate and scale across emerging markets. These aren't just line items; they're the moat protecting the business.

The 'One dLocal' proprietary technology platform and unified API is central. This resource simplifies cross-border transactions by offering a single contract model, API, and settlement system, removing the need for merchants to manage numerous local processors. As an example of its continuous development, DLocal launched 20 new pay-in methods and 7 pay-out methods in 2024, expanding the ecosystem that supports the platform's scale.

Next, you have the critical, hard-to-replicate regulatory and banking footprint. Securing these is resource-intensive, but they unlock markets. DLocal Limited is authorized by the Malta Financial Services Authority for e-money issuance and payment services. Furthermore, Dlocal Corp LLP is registered as a Money Service Business (MSB) with the Financial Crime Enforcement Network in the USA. This licensing effort was bolstered by securing 9 new global licenses, including a UK FCA authorization, in 2024.

The financial strength backing these operations is significant. As of September 30, 2025, DLocal Limited held US$604.5 million in total cash and cash equivalents. Crucially, the Corporate cash and cash equivalents stood at US$333.1 million at that same date, showing a strong, unencumbered balance sheet position.

The human capital-deep local market expertise and a specialized engineering team-is evidenced by the company's continued investment. Operating expenses grew by 28% in Q3 2025 as DLocal invested in technology and sales. This expertise is codified in resources like the 2025 Emerging Markets Payments Handbook, which blends data analysis with on-the-ground insights for international businesses.

Finally, the high-volume merchant base is the engine driving the platform. The scale of this resource is best shown by the transaction volume it processes. In the third quarter of 2025, DLocal processed a record Total Payment Volume (TPV) of $10.4 billion. While the prompt mentions six of the MAG 7 companies, the key takeaway is the sheer volume and the implied trust from a high-caliber, concentrated client base that generates this TPV.

Here's a quick look at the financial scale underpinning these resources as of the end of Q3 2025:

The platform's operational success is reflected in its recent performance, which validates these resources. For instance, the gross profit of $103.2 million in Q3 2025 marked the first time it surpassed $100 million. The net income for that quarter was $51.8 million, representing a 93% year-over-year jump.

The combination of these assets allows for specific operational capabilities, which you can see in the regulatory and product expansion:

• Licenses secured in 2024: 9 new global licenses.
• Pay-in methods added in 2024: 20.
• Pay-out methods added in 2024: 7.
• Q3 2025 TPV growth year-over-year: 59%.
• Q3 2025 Net Income growth year-over-year: 93%.

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Value Propositions

You're looking at the core value DLocal Limited delivers to its enterprise merchants: simplifying the complexity of global commerce in high-growth regions. The platform is built around a single, unified technical interface.

This means you get a single API, one contract, and a streamlined settlement process covering over 40 emerging markets where DLocal Limited operates.

Your conversion rates get a boost because DLocal Limited provides access to over 900 local payment methods. This is critical because in these markets, alternative payment methods are the default for consumers.

The stickiness of the offering is reflected in the customer economics. For Q3 2025, DLocal Limited reported a net revenue retention rate of 149%. That metric ticked up quarter-over-quarter to that level, which is an incredible number showing existing clients are spending almost 50% more than the prior year.

The value proposition also includes simplifying cross-border payments and local fund settlement, allowing global companies to operate without setting up numerous local entities or integrating multiple acquirers in each market. Furthermore, DLocal Limited offers Buy Now, Pay Later (BNPL) solutions, such as the Fuse product, with the structure where DLocal Limited takes no credit risk.

Here's a quick look at the scale of the business driving these value propositions as of the third quarter of 2025:

The growth is geographically diverse, with strong performance noted in markets like Colombia, Bolivia, and Nigeria during the quarter.

You benefit from this platform through:

• Single API for over 40 emerging markets.
• Access to over 900 local payment methods.
• Net Revenue Retention of 149% in Q3 2025.
• BNPL solutions with DLocal taking no credit risk.

DLocal Limited (DLO) - Canvas Business Model: Customer Relationships

You're looking at the engine room of DLocal Limited (DLO)'s growth, which, as of late 2025, is clearly focused on deepening relationships with the clients they already have. The results from the third quarter of 2025 show this strategy is working, with Total Payment Volume (TPV) hitting a record of $10.4 billion, a 59% year-over-year jump.

Dedicated commercial teams managing large enterprise accounts are central to this, as evidenced by the CEO's comment in Q1 2025 that the commercial team effectively leveraged existing merchant relationships. This focus on the existing base is the most telling metric; in Q3 2025, the Net Revenue Retention rate hit an incredible 149%, meaning existing customers increased their spend by 49% over the prior year. To be fair, new merchants added only $6 million in revenue in Q3 2025, reinforcing that the bulk of growth is coming from these existing client expansions.

The high-touch, consultative sales approach is necessary for navigating complex regulatory environments, which DLocal Limited continues to conquer. For instance, the Brazil segment saw 11% revenue growth in Q2 2025, the first growth in that segment since Q2 2024, linked to factors like a higher share of installment payments. This suggests that the consultative work in complex markets is paying off in volume retention and expansion.

The platform itself supports both high-touch and scalable interactions. While the high-touch element handles the complexity, the underlying technology must support operational ease. The success is clear: TPV grew 59% year-over-year in Q3 2025, and revenue grew 52% year-over-year to $282.5 million in the same period. This scale is built on a unified API platform that simplifies cross-border transactions.

Continuous product innovation like 'SmartPix' is specifically designed to deepen merchant stickiness. DLocal Limited launched this new Pix-based solution in Brazil, which leverages tokenized payments and Open Finance to enable features like recurring payments and one-click purchases after a single user authorization. This type of product integration makes switching costs higher for merchants and simplifies the end-user experience, locking in volume.

Here's a quick look at the customer-centric financial performance as of the latest reported quarter in late 2025:

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Channels

The channels DLocal Limited uses to reach its global enterprise merchants and deliver its value proposition are multifaceted, blending direct engagement with platform-based distribution across its target emerging markets.

Direct sales team targeting global enterprise merchants

DLocal Limited focuses on connecting global enterprise merchants with consumers in emerging markets. While specific headcount for the direct sales team isn't quantified, operational expenses reflect investment in this area, with an increase in salaries and wages noted, especially in sales and marketing, during Q3 2025. The goal is to accompany merchants as they move up the S-curve of expansion across more countries and payment methods.

Direct API integration via the 'One dLocal' platform

The core channel is the unified technology platform, 'One dLocal,' which is accessible via a single direct API integration. This platform allows global companies to accept payments, send pay-outs, and settle funds globally using one contract. The scale of adoption is reflected in the Total Payment Volume (TPV) processed through this channel.

Strategic partnerships with global payment orchestrators and platforms

DLocal Limited utilizes strategic alliances to expand reach and service depth. These partnerships often involve expanding payout services or integrating new payment technologies.

• Partnership with Deel expanded to 12 new countries across EMEA and Asia in May 2024, following an initial deployment across 19 countries in 2022.
• Active partnerships with Circle and BVNK to enable stablecoin settlement and on/off-ramp services.
• Partnering with Google on their agent payments protocol, AP2, as of Q3 2025.

Local presence and regulatory infrastructure in key emerging markets

The channel strategy relies on deep local infrastructure, including regulatory licenses and local payment method integrations across Africa, Asia, and Latin America.

• Offers over 900 local payment methods.
• Covers more than 40 geographies.
• Key markets mentioned include Brazil, Mexico, Colombia, Bolivia, Nigeria, Egypt, Argentina, Chile, Costa Rica, Ecuador, Peru, and Uruguay.
• Dlocal Corp LLP is registered as a Money Service Business (MSB) with the Financial Crime Enforcement Network in the USA.
• DLocal Limited is authorized by the Malta Financial Services Authority.

DLocal Limited (DLO) - Canvas Business Model: Customer Segments

You're looking at the core buyers for DLocal Limited as of late 2025. Honestly, the customer base is defined by global companies needing deep local payment penetration in high-growth, fragmented regions. They aren't just looking for a payment processor; they need the infrastructure to handle both money coming in and money going out across borders.

The platform connects global enterprise merchants with consumers across emerging markets in Africa, Asia, and Latin America. These merchants are heavily concentrated in sectors that thrive on digital transactions.

• E-commerce
• Software as a Service (SaaS) delivery
• Streaming services

The growth story is clearly being written by specific verticals. For instance, in the second quarter of 2025, cross-border volumes saw a surge, mainly driven by commerce, SaaS, remittances, and ride-hailing. To be fair, growth was slightly offset by weaknesses in advertising during that period.

DLocal Limited is also serving companies in high-growth verticals like remittances and financial services. The strategic partnerships, like the one with Western Union announced recently, definitely reinforce this focus on large clients with wide reach in Latin America.

The customer profile includes large multinational corporations expanding into emerging markets. The data shows that while core markets like Brazil and Mexico are rebounding strongly, the diversification strategy is working, as markets outside the top three geographies were growing almost 3x faster in Q2 2025. In Q3 2025, frontier markets like Colombia, Bolivia, and Nigeria showed particularly strong results, indicating new customer acquisition or deeper penetration within existing ones.

Merchants definitely require both pay-in and pay-out services, though the mix shifts. In Q2 2025, DLocal Limited saw the majority of its Total Payment Volume (TPV) from pay-ins at 69%, but pay-out volumes grew slightly faster at 60% growth compared to pay-ins at 50% growth. By Q3 2025, this dynamic continued to show strength in both flows:

The geographic focus is the key differentiator for these customer segments. DLocal Limited is fundamentally focused on providing local payment acceptance across the global south. Here's a quick look at where the volume is coming from, based on recent performance:

• Latin America: Core strength in Brazil (11% revenue growth in Q2 2025) and Mexico (28% revenue growth in Q2 2025). Argentina showed 54% revenue growth in Q2 2025.
• Africa: Noted strong contributions from Nigeria in Q3 2025.
• Asia: Noted contributions from Pakistan in Q2 2025.
• Middle East: Performance in Egypt was noted as experiencing a partial volume loss in Q2 2025.

The overall scale of the customer transaction base is significant, with Q3 2025 TPV hitting a record of $10.4 billion. This volume is supported by a high Net Revenue Retention (NRR) figure of 149% in Q3 2025, which definitely speaks to the stickiness of the platform for its existing enterprise clients.

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Cost Structure

You're looking at the cost side of DLocal Limited's platform, and honestly, the story for late 2025 is about scaling investment against margin pressure. Operating expenses grew by a solid 28% year-over-year in the third quarter of 2025, as the company continued to pour resources into its capabilities. That sequential increase of 10% quarter-over-quarter was driven mostly by salaries and wages, particularly within the teams responsible for growth and platform stability.

The major operational costs are broken down below for the three months ended September 30, 2025. Note that the total operating expenses reported for the quarter were $48 million, which aligns closely with the sum of these primary components.

Transaction processing costs, which include interchange and various local fees, are the largest variable cost component embedded within the Cost of Services, though not explicitly itemized as a separate operating expense line. The impact of these costs, or competitive pricing to offset them, is evident in the gross margin compression. For Q3 2025, the gross profit margin settled at 37%, a notable drop from 42% in the third quarter of 2024. Furthermore, the net take rate-the gross profit as a percentage of Total Payment Volume (TPV)-slipped to just 0.99% in Q3 2025, down from 1.07% in the second quarter of 2025. That's a clear signal that the cost to process or the competitive environment is eating into the yield per transaction.

Regulatory compliance and licensing fees across the multiple jurisdictions DLocal Limited operates in form a significant, non-trivial fixed and semi-variable cost. While a specific dollar amount isn't broken out, the operational complexity is highlighted by margin pressure noted in key markets like Egypt, Argentina, and Mexico during the quarter. Successfully navigating the regulatory changes in Argentina during Q3 2025 also required specific structuring efforts that had a short-term impact of $13.1 million expected to reverse over the following quarters.

• Technology and development expenses increased sequentially, driven by headcount, especially in tech.
• Sales and marketing expenses also saw an increase due to higher salaries and wages.
• The company is actively managing costs, as seen by the $1 million decrease in impairment losses on financial assets sequentially.
• Capital expenditures for the nine months ended September 30, 2025, totaled $25,295 thousand.

Finance: draft 13-week cash view by Friday.

DLocal Limited (DLO) - Canvas Business Model: Revenue Streams

You're looking at the core engine of DLocal Limited (DLO) revenue generation, which is fundamentally tied to the volume of transactions processed across its platform. The structure is built around capturing a small percentage of every dollar that flows through its system.

The sheer scale of processing is evident, with Total Payment Volume (TPV) hitting a record in the third quarter of 2025. However, the revenue capture rate, or net take rate, is under pressure, which is a key dynamic to watch. Here's the quick math showing the trend:

That net take rate of 0.99% in Q3 2025 is definitely lower than the 1.07% seen in the second quarter of 2025 and significantly down from the 1.20% in the third quarter of 2024. This metric, which measures gross profit as a percentage of TPV, is closely watched as an indicator of pricing power and margin trends, and its decline signals margin pressure.

The revenue streams are derived from the various services DLocal Limited provides to its global merchant clients to facilitate local payments and payouts in emerging markets. These streams are generally transaction-based fees applied to the underlying volume:

• Fees from pay-in services, covering local card processing and Alternative Payment Methods (APMs).
• Fees from pay-out services, which include disbursements and remittances.
• Revenue share on value-added services like Buy Now, Pay Later (BNPL) offerings and Foreign Exchange (FX) spreads.

For instance, in the second quarter of 2025, revenue growth was partly explained by a higher share of pay-ins, and in the first quarter of 2025, gross profit benefited from wider FX spreads. Finance: draft 13-week cash view by Friday.