dLocal: Emerging Markets Payments Gateway and Vision

Summary

Founded in 2016, dLocal has built a single-API platform connecting global businesses to 900+ local payment methods across Latin America, APAC and EMs. Under the CEO’s leadership, the company holds MSB licences in the US, EMI authorisations in Europe under PSD2, FCA agent model status in the UK, and licences in LATAM. Core services include Collections for acceptance, Disbursements for global payouts, Wallet for e-money with IBAN issuance, Card Issuing for virtual and physical cards, Cross-border FX via SWIFT gpi and on-chain USDC rails, and Open Banking AIS/PIS. Automated KYC/KYB completes in 3–5 days. The microservices architecture uses Go and Node.js, Kafka streaming, Kubernetes, REST/GraphQL APIs, webhooks, a merchant dashboard and sandbox. Pricing ranges 0.5%–2.5% per transaction plus fixed fees, with tiered subscriptions for embedded finance. Roadmap priorities include expanded SEPA Instant, European EMI issuing, deeper open banking integrations, BNPL offerings and DeFi rails over the next 12–24 months.

Interview

1. How did your background prepare you to lead dLocal?

Answer: As a serial entrepreneur and fintech executive, I’ve launched payment solutions in emerging markets and led complex regulatory projects, providing the vision and operational expertise to scale dLocal globally.

2. What licences and regulatory frameworks support dLocal’s services?

Answer: dLocal is registered as an MSB with FinCEN in the US, holds EMI licences in Ireland and Lithuania under PSD2, operates under FCA agent agreements in the UK and maintains local licences in Brazil, Mexico, India and other markets.

3. What are the core products offered by dLocal?

Answer: Collections API for local payment acceptance, Disbursements for mass payouts, Wallet for e-money accounts and IBAN issuance, Card Issuing for virtual/physical cards, cross-border FX via SWIFT gpi and on-chain USDC transfers, and Open Banking AIS/PIS for direct debits.

4. How does dLocal support SEPA Instant and European payouts?

Answer: Our EMI licences enable direct SEPA Instant in 36 markets. A dynamic routing engine chooses Instant for sub-10-second settlement or falls back to SEPA SCT for next-day clearing, ensuring reliability and cost effectiveness.

5. Which payment rails are integrated with dLocal?

Answer: dLocal covers card schemes (Visa, Mastercard, AMEX), ACH and RTP in the US, SEPA Credit and Instant in Europe, UK Faster Payments, local schemes like Boleto and UPI, SWIFT gpi and multiple blockchain rails.

6. How fast is merchant onboarding and KYC/KYB?

Answer: Standard KYC/KYB completes in 3–5 business days via automated identity and corporate checks. High-risk verticals and VASPs undergo enhanced due diligence, taking up to 10 days.

7. How does dLocal leverage open banking?

Answer: Through PSD2-compliant AIS/PIS integrations, dLocal enables instant bank account verification, direct debit funding and transaction data enrichment, improving payment success rates and underwriting.

8. What fraud and AML measures are in place?

Answer: dLocal uses machine-learning-driven risk scoring, real-time sanctions and PEP screening, transaction velocity rules, device fingerprinting and manual reviews to enforce robust AML compliance globally.

9. Which acquiring partnerships does dLocal maintain?

Answer: In addition to our own EMI operations, dLocal partners with local acquirers and banks in LATAM, APAC and Africa to provide full coverage where direct authorisation is not held.

10. Can you outline dLocal’s technical stack?

Answer: The platform is built on microservices in Go and Node.js, orchestrated by Kubernetes, uses Kafka for event streaming, exposes RESTful and GraphQL APIs, webhooks for real-time notifications, and offers a sandbox for partner testing.

11. How does dLocal structure its pricing?

Answer: Pricing is transaction-based: Collections at 0.5%–1.5%+fixed, Disbursements at $0.10–$5 per payout, Wallet and Issuing fees at $0.10–$1 per transaction, with subscription tiers and volume discounts.

12. Who are dLocal’s target clients?

Answer: dLocal serves global ecommerce platforms, marketplaces, gaming and streaming services, fintechs, remittance providers and large enterprises expanding into emerging markets.

13. How does dLocal differentiate from Stripe and Adyen?

Answer: Unlike Stripe and Adyen, which focus on developed markets, dLocal specializes in seamless integration of local methods, regulatory compliance and treasury in emerging economies.

14. How is cross-border FX handled?

Answer: dLocal uses SWIFT gpi for trackable FX settlement and offers competitive FX spreads of 0.5%–1.5%, with automated netting and settlement in over 40 currencies.

15. What recent dLocal product launch should partners know?

Answer: This quarter, dLocal introduced Crypto Payouts, enabling USDC and BTC disbursements with on-chain settlement, automated compliance checks and real-time liquidity management.

16. What is on dLocal’s roadmap for 12–24 months?

Answer: Roadmap items include European EMI issuing, expanded embedded finance SDKs, localized BNPL solutions in Latin America, advanced open banking payments in APAC, and AI-driven dynamic routing for cost efficiency.

17. How does dLocal manage its risk appetite?

Answer: dLocal sets per-vertical risk thresholds, enforces transaction and velocity caps, leverages real-time analytics to tune fraud controls, and maintains capital reserves for settlement liabilities.

18. How does dLocal support developer integration?

Answer: dLocal’s developer portal offers comprehensive REST and GraphQL APIs, client SDKs in JavaScript, Python and PHP, webhook event subscriptions, detailed documentation and a sandbox environment for seamless integration.

19. How does dLocal engage with regulators?

Answer: dLocal collaborates with EU, US and LATAM authorities on PSD3, open finance and crypto regulations, participates in global fintech working groups and publishes compliance transparency reports.

20. What is dLocal’s long-term vision?

Answer: dLocal aims to be the unified payments and embedded finance platform for emerging markets—empowering businesses with compliant, scalable and programmable payment rails worldwide.

Competitors

FAQ

What licences does dLocal hold?

dLocal holds US MSB licences, EMI authorisations in Ireland and Lithuania under PSD2, and FCA agent partnerships in the UK.

How quickly can merchants onboard?

Standard merchants complete KYC/KYB in 3–5 business days; regulated or high-risk sectors in up to 10 days.

Does dLocal support SEPA Instant?

Yes, dLocal offers SEPA Instant in 36 European markets with dynamic routing and SCT fallback via its EMI licences.

What are dLocal’s transaction fees?

Fees range from 0.5%–1.5%+fixed for Collections, $0.10–$5 for Disbursements, and $0.10–$1 for Issuing and Wallet Services.

Can developers test dLocal APIs?

Yes, dLocal provides a sandbox, API keys, client SDKs and comprehensive documentation for integration testing.

How does dLocal ensure AML compliance?

dLocal uses ML-driven risk scoring, sanctions and PEP screening, transaction monitoring and manual review workflows for robust AML controls.