- dLocal, a Uruguay-born cross-border payment platform, has partnered with iTransfer, a money remittance company, to address challenges, including currency volatility, associated with cross-border payments in emerging markets.
- The collaboration seeks to address these challenges by providing competitive rates, real-time currency updates, and increased flexibility for end-users. The move focuses on “mitigating currency risks and improving transfer efficiency.”
- Initially, the rollout will support payouts for bank transfers and wallet payments in Nigeria, the Philippines, and Pakistan. dLocal has announced plans to extend this service to Bangladesh, Morocco, Egypt, and India.
dLocal connects enterprise merchants with market consumers across Africa, Asia, and Latin America, allowing companies to accept payments, send payouts, and settle funds.
The Uruguay-born fintech boasts a presence in Asia, Latin America, and over 10 countries in Africa and the Middle East, including Kenya, South Africa, Nigeria, and Turkey. According to dLocal, it processed $17.7 billion in payments as of 2023.
In Q1 2024, dLocal recorded $5.3 billion in total payment volume, up 49% year-over-year and 4% quarter-over-quarter, with revenue of $184 million, up 34% year-over-year but down 2% quarter-over-quarter.
dLocal mentioned that one of the key challenges faced in emerging markets is currency volatility, which can affect remittance values, citing instances where currency fluctuations can impact real-time transfer values.
On the partnership, Marcela Gonzalez, CEO of iTransfer, with a significant presence in EMEA, Latin America, and APAC, stated that offering users competitive rates is crucial to supporting financial needs in emerging markets and aligns with its growth and expansion strategy.
"By integrating dLocal's robust payment infrastructure, we can significantly enhance the remittance experience for our users."
Agustin Botta, Head of EMEA at dLocal, said the partnership showcases their commitment to innovation and equitable access to financial services, as they collaborate with iTransfer to meet the specific needs of cross-border payments in volatile markets.
dLocal’s partnership with iTransfer follows a series of partnerships announced by the cross-border payments in the last six months. In Kenya, dLocal partnered with KCB Bank to enable its global customers to execute disbursements in real-time into all Kenyan bank accounts.
Beyond dLocal, other Latin American fintechs are also expanding into Africa. In July 2024, Minka, a Colombian fintech, began operations in East Africa, including Kenya, Tanzania, Uganda, and Ethiopia, with plans to expand into Mozambique, Zambia, and Malawi in Southern Africa.
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