Latin America Payments and FinTech: 2Q26 Preview: Challenging Moment for Acquirers; Relatively More Optimistic with Fintechs for 2Q26

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Latin America Payments and FinTech: 2Q26 Preview: Challenging Moment for Acquirers; Relatively More Optimistic with Fintechs for 2Q26

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08 Jul 2026 17:00:00 ET │ 24 pages

Latin America Payments and FinTech

2Q26 Preview: Challenging Moment for Acquirers; Relatively More

Optimistic with Fintechs for 2Q26

Gustavo Schroden AC

CITI'S TAKE +55-11-4009-5858

While momentum remains challenging for acquirers such as STNE and gustavo.schroden@citi.com

PAGS, given the higher interest rate environment and softer volume trends, AC Arnon Shirazi, CFA

we are relatively more constructive on PICS and DLO, in the short term. We

expect PicPay to deliver continued earnings growth, supported by the +55-11-4009-7906

expansion of its credit portfolio, although we increase our cost of risk arnon.shirazi@citi.com

assumptions for 2026 and 2027. Overall, our estimates remain broadly in Brian Flores, CFA

line with the company’s near-term guidance. For dLocal, we anticipate +55-11-4009-2842

another quarter of robust TPV growth, even as ongoing take rate

compression is likely to weigh on revenue yield. luis.brian.flores@citi.com

PicPay – Expectations In-Line with ST Guidance — We expect strong results,

driven by continued growth in the loan portfolio and solid revenue expansion.

Despite higher provisions, adjusted net income should more than double y/y.

However, given our conservative stance on the quality of the Brazilian credit market,

we revise down our expectations for 2026 and 2027 due to a higher cost of risk

assumption, as we did for the sector overall.

dLocal - Strong TPV to Continue — We expect dLocal to maintain strong

momentum, with TPV growth of 65% y/y supporting robust earnings growth. Lower

take rates and elevated investments should be offset by strong volume growth.