Payments platform dLocal has been granted payment service licences by the Central Bank of Kenya and the National Bank of Rwanda. Merchants continue to signal strong demand in these markets. And dLocal intends to fuel growth in the region.

The payment service licenses allow dLocal to facilitate payments and improve the technological experience for their merchant customers. dLocal now can process local payments quickly and easily directly through acquiring banks or institutions. This means they are not relying on a third-party provider, all the while ensuring regulatory compliance.

Africa: +500 million e-commerce users by 2025

Africa is forecast to surpass half a billion e-commerce users by 2025. This represents a steady 17% compound annual growth rate of online consumers for the market.

“Africa continues to show tremendous untapped e-commerce opportunity. People in Kenya, Nigeria and Rwanda are encouraged to use digital payments more often by new regulations and payment opportunities,” said Adebiyi Aromolaran, Head of Expansion Africa at dLocal.

“The regulatory payment framework in emerging countries varies significantly. Receiving payment service provider licenses in all three countries, Kenya, Nigeria, and Rwanda are great milestones in our mission to be a truly local payment partner for our global merchants. The licenses advance our objective to leverage the scalability of our technology to broaden our geographic footprint in Africa.”

With dLocal, international merchants can accept cash, mobile money, locally issued cards, Visa and Mastercard debit, credit and prepaid cards. This is thanks to the “One dLocal” concept of one direct API, one platform and one contract.

dLocal Q1 2023 earnings

dLocal’s Africa expansion plans follow release of its first quarter earnings. For the three months to end March, dLocal reported gross profit if $62m, up by 42% y-o-y.

Total payment volume of $3.6bn is ahead by 70% y-o-y. Revenue of $137m is up by 57% y-o-y. Adjusted EBITDA of $45m is up by 38% y-o-y.

During Q1 2O23, the firm increased headcount by 36% year-over-year to 763 employees. It has consistently maintained an adjusted EBITDA over gross profit above 70% in the past nine quarters.

“Our excellent results in the first quarter, combined with our strong cash generation, give us even more confidence in our winning strategy in emerging markets. We are very excited about the massive opportunity ahead of us. We remain focused on executing our long-term strategy.” said Sebastian Kanovich, dLocal CEO.