The Contenders for the Crown
In this digital land grab, three names keep cropping up, each tackling the opportunity from a slightly different angle. First, you have PagSeguro, which to me looks like the champion of the little guy. It provides the simple payment terminals that allow millions of micro-entrepreneurs, the lifeblood of Brazil’s informal economy, to finally accept digital payments. It’s a classic case of finding a massive market that the big players simply ignored.
Then there’s StoneCo. It’s a bit more sophisticated, targeting the growing legion of small and medium-sized businesses, particularly in e-commerce. StoneCo isn’t just a payment processor, it’s a business partner, offering software for everything from inventory management to customer analytics. It’s a stickier, more integrated model that aims to grow alongside its clients.
And finally, there’s the purple-carded revolutionary, Nubank. It has become a cultural icon by building a full-service digital bank from the ground up, focused entirely on user experience. By scrapping fees and making banking ridiculously simple, Nubank has attracted customers at a pace that would make a traditional bank’s eyes water.
