DLocal CEO Says Payment Fragmentation Is Its Moat as Growth Momentum Builds

MarketBeat

Tue, May 19, 2026 at 7:04 AM EDT 7 min read

Key Points

• Interested in DLocal Limited? Here are five stocks we like better.

• DLocal’s key moat is its ability to give global merchants one integration into more than 60 emerging markets, where fragmented payment systems and regulations often create major friction for expansion.

• CEO Pedro Arnt said the company is shifting from a more defensive rebuild phase to growth initiatives, with emphasis on new products like BNPL, alternative payment methods, merchant of record services, and omnichannel payments, while expanding in Southeast Asia and other regions.

• Arnt said momentum is strong and guidance remains intact, with total payment volume growth expected at 50% to 60% and performance trending toward the top end; DLocal is also prioritizing share gains and gross profit growth over defending take rates.

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DLocal (NASDAQ:DLO) Chief Executive Officer Pedro Arnt said the payments company remains focused on expanding its role as a financial infrastructure provider for large global merchants operating in emerging markets, emphasizing that fragmentation in those markets continues to be central to the company’s value proposition.

Speaking with Sebastian Rodriguez, Managing Director of Technology Investment Banking at JPMorgan, Arnt described DLocal’s core advantage as its ability to give enterprise merchants a single integration into more than 60 emerging markets and thousands of payment mechanisms. He said many global companies find payments to be a “significant friction point and bottleneck to growth” when entering markets with fragmented systems, legacy technology and varied local regulations.

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Arnt said DLocal has spent more than 10 years building payment pipelines, stakeholder relationships, licenses and regulatory knowledge across those markets. He called that a “significant moat” and said it has supported net revenue retention levels of more than 150%.

CEO Focus Shifts Toward Growth Initiatives

Arnt said much of his early tenure as sole CEO was spent rebuilding parts of the team and strengthening middle-office, back-office and regulatory capabilities. He characterized that period as a more “defensive agenda.”

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Over the past six months, he said, his focus has shifted toward product innovation and geographic growth. Areas of emphasis include newer products such as buy now, pay later, alternative payment methods, merchant of record services and omnichannel offerings, including a physical payments presence.