The digital payments landscape in emerging markets represents one of the most compelling growth stories in global finance, with companies like DLocal (NASDAQ: DLO) positioned to capitalise on a vast and rapidly expanding total addressable market (TAM). Recent analyses on platforms such as X, including commentary from accounts like TacticzH, have highlighted the scale of this opportunity. Yet, beyond the surface-level optimism, a rigorous examination of DLocal’s positioning, market dynamics, and financial metrics reveals both the potential and the challenges of capturing this growth in regions like Latin America and Asia Pacific.
Emerging Markets: A Multi-Trillion Pound Opportunity
The digital payments sector in emerging markets is undergoing a structural shift, driven by rising smartphone penetration, increasing e-commerce adoption, and a growing preference for local payment methods over traditional card-based systems. According to industry estimates, the TAM for digital payments in these regions is valued at approximately £1.57 trillion (US$2 trillion) as of 2025, with projections indicating a compound annual growth rate (CAGR) in the high teens through 2030. This growth is particularly pronounced in Latin America, where markets like Brazil and Mexico are seeing annual e-commerce growth rates of 20% or more, and in Asia Pacific, where countries like Indonesia and Vietnam are digitising at an even faster pace.
DLocal, a Uruguay-based fintech, has carved out a niche by offering a single API platform that connects global merchants to over 900 local payment methods across more than 40 countries. Their focus on pay-ins and pay-outs in emerging markets addresses a critical pain point for multinational corporations seeking to navigate fragmented payment systems. However, with an estimated market share of just 1% of the current TAM, the question remains: can DLocal scale effectively to capture a meaningful slice of this expanding pie?
Financial Performance: A Snapshot of Growth
Turning to the numbers, DLocal’s recent financials provide a clear picture of its trajectory. For the full year 2024, the company reported a total payment volume (TPV) of US$25.6 billion, marking a 45% year-on-year increase. Revenue for the same period reached US$746 million, up 15% from 2023, while net revenue retention stood at an impressive 113%, indicating strong customer loyalty and expansion within existing accounts (Q4 2024, October to December). These figures underscore DLocal’s ability to grow transaction volumes significantly, though revenue growth lags somewhat due to pricing pressures and a competitive landscape.
Comparing this to historical data, DLocal’s TPV in 2022 was US$10.6 billion, meaning the company has more than doubled its processing capacity in just two years. This acceleration aligns with the broader market trend of digital payment adoption, but it also highlights the need for sustained investment in infrastructure and partnerships to maintain momentum.
Competitive Positioning and Risks
While DLocal’s early-mover advantage in emerging markets is notable, it faces stiff competition from global players like Adyen and Stripe, as well as regional fintechs that offer hyper-localised solutions. The company’s strength lies in its deep understanding of regulatory and cultural nuances—evidenced by recent partnerships such as its collaboration with RizRemit to expand cross-border remittances in Africa and Asia. However, scaling operations across diverse geographies brings inherent risks, including currency volatility, regulatory changes, and geopolitical instability.
Moreover, with only a fractional share of the TAM, DLocal’s growth hinges on its ability to penetrate deeper into existing markets while expanding into untapped regions. The high teens CAGR projected for the sector offers a tantalising backdrop, but execution will be key. A single misstep in a critical market like Brazil, which accounts for a significant portion of its TPV, could dent investor confidence.
Market Dynamics by Region
The following table breaks down key growth metrics for digital payments in DLocal’s core regions, based on 2025 projections:
| Region | Estimated TAM (2025, US$ Billion) | Projected CAGR (2025-2030) | Key Growth Driver |
|---|---|---|---|
| Latin America | 605 | 17.8% | E-commerce adoption |
| Asia Pacific | 930 | 21.7% | Mobile wallet penetration |
| Africa | 300 | 18.3% | Cross-border remittances |
Looking Ahead: Balancing Optimism with Pragmatism
The narrative surrounding DLocal’s potential in emerging markets is undeniably compelling. A £1.57 trillion TAM, coupled with double-digit growth rates, paints a picture of near-limitless opportunity. Yet, for every pound of transaction volume processed, the company must navigate a minefield of operational and competitive challenges. Investors would do well to temper enthusiasm with a clear-eyed view of the risks, particularly as DLocal’s revenue growth trails its TPV expansion.
In conclusion, DLocal stands at a pivotal juncture. The digital payments boom in emerging markets offers a rare chance to scale, but capturing even a modest increase in market share will require precision, patience, and perhaps a touch of luck. As the sector evolves, those watching the space will find DLocal’s progress a useful barometer of broader trends in global fintech.
References
- dLocal. (2025, February 27). dLocal Reports 2024 Fourth Quarter Financial Results. GlobeNewswire. Retrieved from https://www.globenewswire.com/news-release/2025/02/27/3034284/0/en/dlocal-reports-2024-fourth-quarter-financial-results.html
- dLocal. (2025, July 8). dLocal Launches The 2025 Emerging Markets Payments Handbook: The Blueprint to Lead Across the Global South. Retrieved from https://www.dlocal.com/press-releases/dlocal-launches-the-2025-emerging-markets-payments-handbook-the-blueprint-to-lead-across-the-global-south/
- FF News. (n.d.). dLocal and RizRemit team up to accelerate cross-border remittances across Africa and Asia. Retrieved from https://ffnews.com/newsarticle/paytech/dlocal-and-rizremit-team-up-to-accelerate-cross-border-remittances-across-africa-and-asia
- FF News. (n.d.). dLocal Launches The 2025 Emerging Markets Payments Handbook: The Blueprint to Lead Across the Global South. Retrieved from https://ffnews.com/newsarticle/paytech/dlocal-launches-the-2025-emerging-markets-payments-handbook-the-blueprint-to-lead-across-the-global-south/
- InsightAce Analytic Pvt Ltd. (2025, July 25). Digital Payment Market Growth Driven by Technological Innovation and Evolving Consumer Preferences. openPR. Retrieved from https://openpr.com/news/4119642/digital-payment-market-growth-driven-by-technological
- IT Brief Asia. (n.d.). dLocal report reveals payment trends shaping emerging markets. Retrieved from https://itbrief.asia/story/dlocal-report-reveals-payment-trends-shaping-emerging-markets
- Mordor Intelligence. (2025). Digital Payment Markets – Growth, Trends, and Forecasts (2025 – 2030). Retrieved from https://www.mordorintelligence.com/industry-reports/digital-payment-market
- NextBillion. (n.d.). dLocal Launches The 2025 Emerging Markets Payments Handbook: The Blueprint to Lead Across the Global South. Retrieved from https://nextbillion.net/news/dlocal-launches-the-2025-emerging-markets-payments-handbook-the-blueprint-to-lead-across-the-global-south/
- openPR. (n.d.). Digital Payments Market 2025-2032 with Business Overview. Retrieved from https://openpr.com/news/4117825/digital-payments-market-2025-2032-with-business-overview
- openPR. (n.d.). Emerging Trends to Drive Digital Payments Market Growth at 9.7% CAGR. Retrieved from https://www.openpr.com/news/4109369/emerging-trends-to-drive-digital-payments-market-growth-at-9-7
- Statista. (2025, July). Digital Payments: Market Value by Region 2025. Retrieved from https://www.statista.com/outlook/dmo/fintech/digital-payments/worldwide
- TacticzH [@TacticzH]. (2024, October 10). [Post regarding DLocal and emerging markets]. X. https://x.com/TacticzH/status/1938330187629785143
- TacticzH [@TacticzH]. (2024, October 11). [Post regarding DLocal and emerging markets]. X. https://x.com/TacticzH/status/1943044866935590989
- TacticzH [@TacticzH]. (2024, October 12). [Post regarding DLocal and emerging markets]. X. https://x.com/TacticzH/status/1929529631503258006
- TacticzH [@TacticzH]. (2024, October 13). [Post regarding DLocal and emerging markets]. X. https://x.com/TacticzH/status/1928454628846584088
- TacticzH [@TacticzH]. (2024, October 14). [Post regarding DLocal and emerging markets]. X. https://x.com/TacticzH/status/1938506271633678595
