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PagSeguro credited with having IPO intentions: report
Posted on Tuesday, 05 December 2017 12:23
The controlling shareholder of PagSeguro Internet is considering listing the payment processing subsidiary next year, Reuters reported, representing the latest in a string of recent dealmaking by financial technology (FinTech) startups.
Universo Online (UOL) entered into discussions with Goldman Sachs earlier this year regarding a first-time share sale of its São Paulo-based online transaction platform in the first quarter of 2018, sources close to the situation told the news provider.
These people, who declined to be named as the matter is private, added the Brazilian Internet access and content provider is currently working on whether to list the unit on the New York Stock Exchange or Nasdaq.
Established in 2007, PagSeguro is effectively an e-wallet that allows merchants to accept the most popular payment methods in Brazil, such as credit cards and boleto.
The gateway allows anyone to complete or receive payments using, for example, bank transfers, or their PagSeguro account balance; the successful US equivalent would be PayPal, which currently has a market capitalisation of USD 85.30 billion.
PagSeguro offers consumers a safe way of purchasing items online by automating buying and selling methods, and allows businesses of any sizes to increase their internet transactions.
The platform competes domestically with credit card processing companies such as Cielo and Itaú Unibanco Holding’s Redecard but as the gateway is part of UOL, billed as the largest Internet portal in Brazil, it is backed by a trusted brand.
Financial inclusion in the South American country has made some headway in the last five years, according to data by World Bank.
This progress is likely to filter across into the FinTech scene, particularly in terms of transaction processing, as people see the benefits of bypassing a bank by using contactless payments or e-wallets.
China, one of the leading online retail markets globally, is reportedly driving market growth by meeting increasing demand for financial services that are underserved by the country's traditional banking sector.
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