dLocal Investing $100 Million to Expand in Argentina
BY PYMNTS | JUNE 16, 2023
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dLocal
Payment platform dLocal says it is investing heavily in Argentina.
The company plans to invest $100 million in that country, while hiring 400 new workers in the near and medium term, according to a Thursday (June 15) press release.
Per the release, dLocal met with senior representatives of the country’s government to discuss “the manner in which dLocal operates in the country,” including its compliance with Argentina’s foreign exchange rules.
“The government representatives understood the importance of the services that dLocal provides in Argentina, the way in which dLocal promotes financial inclusion in the country and appreciated dLocal’s proactive engagement and willingness to cooperate with applicable administrative and judicial authorities of Argentina,” the company said in the release.
The news follows April’s release of dLocal for Platforms, a new tool that lets dLocal onboard sellers, service providers or contractors to the platform, and verify them before paying out.
“Everyone selling their services or products on a platform relies on receiving their payment in due time and order,” Federico Mazzoli, dLocal’s vice president of product, said at the time. “That’s where we step in to sort the challenges they face when offering a convenient and local checkout experience, for both sellers and customers.
“No need to connect to hundreds of different processors, and way less hassle when making payments to other merchants or sellers,” he added.
As PYMNTS has written, offering local payments is vital for merchants hoping to expand overseas, with one study showing that consumers complete 77% of global eCommerce purchases using local payment methods, such as local cards or cash.
“Lacking an adequate selection of locally preferred payment methods can result in customer abandonment, with 44% of consumers in the United Kingdom saying they would forgo a purchase if their favorite payment method were unavailable,” PYMNTS wrote.
Online merchants that expand overseas are often surprised at the variations between global payment trends and what they encounter in the West. There is a wide range of local and alternative payment methods, each of which is some customer’s favorite, Andy McHale, senior director of product at Spreedly, told PYMNTS.
“For the U.S. and large parts of Europe, we tend to think of credit cards as the primary method of paying for things, whether that’s in person or online,” he said. “But that doesn’t work for every individual, every ecosystem, every region on the planet. You’ve got your digital wallets, PayPal, Apple Pay, Google Pay. You have your bank account and direct debit as well.”
