DLocal Delivers Exceptional Q1 2026 Results: A Testament to its Decade-Long Vision of Unlocking Emerging Markets
The first quarter of 2026 has been a remarkable period for DLocal, a leading provider of localized payment infrastructure and services. As the company celebrates two significant milestones - its 10th anniversary since founding and five years since listing on Nasdaq - it continues to demonstrate exceptional growth and expansion.
In an earnings conference call held on May 14, 2026, Pedro Arnt, Chief Executive Officer, highlighted the company's remarkable trajectory. From processing $100 million in TPV in a single country in 2016 to crossing $47 billion across the entire Global South over the last 12 months as of this quarter, DLocal has achieved an almost 90% compound annual growth rate sustained over a decade.
The key to this success lies in the company's strategic model, which has remained consistent throughout every phase. One API, deep local infrastructure, continuous expansion of payment method coverage, licensing, regulatory capabilities, and products have enabled DLocal to serve over 760 enterprise merchants through a single API, reaching approximately 70% of the world's population.
With operations in more than 60 countries, including new markets such as Algeria, Qatar, Kuwait, and Oman, DLocal now holds 38 licenses and authorizations across 26 markets with 16 additional applications in process. This extensive presence has allowed the company to build a robust infrastructure that can support merchants operating efficiently in emerging markets.
As Pedro Arnt emphasized, "Localization is what ultimately drives success throughout emerging markets." Local payment methods are no longer alternative options but have become the primary way consumers transact online in many of these markets. By supporting local payment methods, merchants can improve the checkout experience and reach consumers who do not transact in any other way.
Examples of this success can be seen in Peru, where Yape drives 40% net new customers to some of DLocal's merchants, and in South Africa, where Payflex drives 80%. The company's own innovation layer, such as Smart Pix and biometric-enabled Pix, allows it to drive differential performance on top of existing local rails.
Compared to international acquiring, DLocal's localized approach delivers up to 20 percentage points conversion uplift in certain markets. This demonstrates the importance of local processing in maximizing authorization and conversion rates in emerging markets.
