Nuvei launches direct local acquiring in Colombia

Rhea-AI Summary

Nuvei, a Canadian fintech company, becomes the first global payments provider to offer direct local acquiring in Colombia, expanding its LATAM presence. This move enables local and international partners to accept card payments without intermediaries, enhancing control over transactions and providing a more localized payment experience. Nuvei aims to empower businesses in Colombia with rapid scaling opportunities and enhanced reporting capabilities, tapping into the fast-growing Latin American eCommerce market.

Insights

Financial Analyst

The expansion of Nuvei into Colombia with direct local acquiring capabilities presents a strategic advancement in the company's growth within the Latin American market. By bypassing intermediaries, Nuvei can offer more competitive rates, potentially improving margins and profitability. The enhanced reporting capabilities and consolidation of transaction data are critical for businesses to analyze performance and make informed decisions, which could lead to more efficient operations and higher revenue growth.

Furthermore, the reduction in settlement times can improve cash flow for businesses, a crucial aspect for liquidity management. The projected CAGR of 27% in Colombia's eCommerce volume indicates a robust market opportunity that Nuvei is capitalizing on. Investors should monitor Nuvei's market share growth and the performance of its Colombian operations as indicators of the company's ability to leverage this expansion for revenue growth.

Market Research Analyst

Nuvei's establishment of direct local acquiring in Colombia is a significant move in the context of Latin America's rapidly growing eCommerce market. By being the first global payments provider to offer this service in Colombia, Nuvei gains a first-mover advantage, which can be critical for building brand recognition and customer loyalty. This strategic move could also serve as a catalyst for further expansion within LATAM, attracting eCommerce businesses that require a localized payment experience for customers.

As Latin America becomes more attractive for international eCommerce, Nuvei's ability to provide a hyper-localized payment experience while supporting international scalability will be a key differentiator. The potential uplift in card authorization rates and optimized processing resources could lead to enhanced customer satisfaction and retention rates, which are vital metrics for the success of eCommerce platforms.

Economist

The introduction of Nuvei's direct local acquiring in Colombia reflects broader economic trends within the region, such as the increasing adoption of digital payments and the growth of the eCommerce sector. Nuvei's investment in the region could have multiplier effects on the local economy by facilitating smoother transactions and supporting the growth of businesses. This could, in turn, stimulate further economic activity and innovation within Colombia's digital infrastructure.

Additionally, the move aligns with the global shift towards financial technology solutions that enhance efficiency and reduce barriers to entry for businesses looking to scale. By providing the infrastructure to support rapid scaling and international expansion, Nuvei is not only positioning itself to benefit from this economic shift but also aiding in the acceleration of digital transformation in emerging markets.

Nuvei is the first global payments provider to offer direct local acquiring in the country, expanding its LATAM footprint

MONTREAL, Feb. 20, 2024 /PRNewswire/ -- Nuvei Corporation ("Nuvei" or the "Company") (Nasdaq: NVEI) (TSX: NVEI), the Canadian fintech company, announces today that it has launched direct local acquiring capabilities in Colombia, further expanding its presence in Latin America (LATAM) and strengthening its overall footprint in the region.

Nuvei is the first global payments company to offer direct local acquiring in Colombia, enabling local and international partners to accept card payments from their customers in the country without relying on intermediaries or third-party payment processors. Simplifying payments relationships in Colombia enables eCommerce businesses to maintain greater control over transaction flow management, as well as develop a more localized payments experience for customers.

This announcement is the latest from Nuvei as it continues to expand its global reach and enable its partners to engage with their customers more deeply through payments, wherever they are and however they want to pay. In addition to unifying international operations via a single processing platform, businesses operating in Colombia are benefitting from enhanced reporting capabilities through consolidation of all global transaction data, making data easier to analyze and inform decision making.

Colombian businesses looking to scale rapidly, including through quick and efficient international expansion, are also able to leverage Nuvei's global reach to enter new markets with ease.

Other benefits of direct local acquiring to eCommerce businesses selling to customers in Colombia through their global integration with the Nuvei platform include card authorization rate uplift, reduced settlement times from days to potentially less than 24 hours, and optimized processing resource commitments.

Latin America is one of the world's fastest-growing regions, making it an increasingly attractive region for international eCommerce businesses. Within LATAM, Colombia is the third-largest eCommerce market, reaching US$42.3 billion in volume in 2023. Annual volume in Colombia is forecasted reach US$87 billion in 2026 at a projected compound annual growth rate (CAGR) of 27%.¹

Philip Fayer, Nuvei Chair and CEO, commented on the announcement: "Launching our direct local acquiring capabilities in Colombia augments our presence in LATAM and reinforces our commitment to growth in the region. We are already active in more than eleven markets in LATAM through direct integration into local acquirers and networks, and adding direct local acquiring capabilities in Colombia strengthens our ability to provide best-in-class services to our customers across the region."

With local acquiring capabilities in 50 markets and connectivity to 680 local APMs, Nuvei is elevating payments to a hyper-localized level on a global setting, and supporting businesses to expand internationally while still optimizing their payments function.

About Nuvei 

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei's modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 50 markets, 150 currencies and 680 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration. 

For more information, visit www.nuvei.com

NVEI-IR

Contact: 

Public Relations
alex.hammond@nuvei.com

Investor Relations
IR@nuvei.com 

¹ https://paymentscmi.com/insights/colombia-e-commerce-market/

View original content to download multimedia:https://www.prnewswire.com/news-releases/nuvei-launches-direct-local-acquiring-in-colombia-302066267.html

SOURCE Nuvei

FAQ

What is Nuvei's ticker symbol?

Nuvei's ticker symbol is NVEI.

What is Nuvei's latest announcement regarding Colombia?

Nuvei has launched direct local acquiring capabilities in Colombia, becoming the first global payments provider to offer this service in the country.

How does Nuvei's direct local acquiring benefit eCommerce businesses in Colombia?

It enables businesses to accept card payments without intermediaries, leading to greater control over transaction flow, faster settlement times, and optimized processing resource commitments.

What is the forecasted eCommerce market volume in Colombia for 2026?

The forecasted eCommerce market volume in Colombia for 2026 is US$87 billion with a projected CAGR of 27%.

Who is the Chair and CEO of Nuvei?

Philip Fayer is the Chair and CEO of Nuvei.