Strategy

STRATEGY

Our focus in the last years has been to create a multiservice platform for our customers, with solutions ranging from payments to financial services to value-added services, in both physical and digital worlds. We believe this makes us integral to our customers’ endeavor to achieve their business goals.

Thus, after years of continuous investments and improvements, commercial establishments already have access to the most modern technology and innovative solutions in the market and we plan to grow our business even further to bring the best customer experience through strategies listed below.

Expanding digital products offering and monetizing investments

We intend to build on our completely new digital platform in order to grow within the e-commerce segment, which has become the fastest-growing payments channel due to the adoption of new technologies and the impact of them on customer behavior.

We intend to continue to be innovative and adapt to future changes in customer behavior, both organically and through acquisitions or partnerships where appropriate, in order to best capture all possible market growth. In the short term, our strategy will consider, among others, the following solutions:

  • Auttar: Multi-channel solution that simplifies the integration of business automation and payment services. We believe that this solution combines a good user experience with features giving merchants control over the sale process. Combined with business automation, Auttar enables us to deliver segment-specific solutions, including to restaurants, beauty shops and gas stations. In 2020, it added 8,000 new customers with its software customization services;
  • PIX: In 2020, the Brazilian Central Bank launched an instant payment solution. With respect to the use, we are offering the following services:
    • PIX Facilitator: A simplified way for merchants to use PIX.
    • PIX Acceptance Hub: A payment service for merchants and other players.
    • PIX Reconciliation Tool: A tool that provides merchants with control over their flow of receivables and settlement and the ability to reconcile these with their other accounting records. This gives merchants a complete view of terms, values, bank statement (“domicílio bancário”), payers, as well as the identification and registration of PIX data for their transactions.
Maintaining a competitive advantage in terms of efficiency

We believe we have had a competitive advantage with respect to our competitors due to our low cost per transaction. In 2020, we had a cost per transaction of R$0.32, which we believe, based on the data available to us, is lower than our main competitors. We believe that this competitive advantage is significant given the increase in competition in recent years, with new players capturing growth and gaining market share from more traditional competitors. We believe that maintaining a low cost per transaction within the sector will allow us to be more competitive in terms of pricing, allowing us to capture as much of the growth in the market.

Maintaining a relationship with Santander Brasil while growing Independent Channel

We believe our success is also due to flexible relationship with Santander Brasil. This is a two-way relationship from which both parties’ benefit. Our strategy in this regard will remain the same in the coming years after the Spin-off. Furthermore, we will also focus on building a new independent channel allowing us to grow outside Santander Brasil’s ecosystem in the coming years.

Becoming a main pillar within PagoNxt

Following the Spin-off, we will operate as the Brazilian leg of the Santander Group’s PagoNxt merchant solutions. PagoNxt is a strategic initiative that seeks to promote sustainable and profitable growth by integrating various payment solutions for businesses and consumers using the latest technology. It is already one of the largest fintechs from its creation, with more than 1,400 employees worldwide. The PagoNxt brand will be the umbrella under which Santander Group will unify its payment businesses, in order to help it to compete better, both with fintechs and large digital platforms, such as other banks, in these kinds of essential services for customers.

PagoNxt is an autonomous company within the Santander Group. Through its three lines of business, the company provides solutions not only to banking clients of the Santander Group but also to third party customers, financial institutions and fintechs. PagoNxt offers:

  • Merchant Solutions: PagoNxt’s goal is to build a global, open merchant payment platform and consolidate the Santander Group’s leadership position in this regard. This line of business includes PagoNxt merchant solutions, which drives the global expansion of Getnet, which has more than 1.1 million users and is at the core of PagoNxt’s merchant strategy. It will also give merchants a unique experience including additional value-added services.
  • Trade Solutions: PagoNxt’s vision is to deliver fast and efficient trade finance, supply chain and international payments and foreign exchange payments solutions for international SMEs (Small and Medium-Sized Enterprises) and long tail that were once only accessible to large corporations. At the heart of PagoNxt’s trade strategy is Ebury, which, together with One Trade, Mercury and Payments Hub, already provides services more than 160,000 SMEs.
  • Consumer Solutions: PagoNxt’s aim is to deliver simple, highly engaging payment solutions for individuals, which are intended to become embedded in our customers’ daily lives. These include Superdigital, the inclusive-finance proposition already available in Brazil, Chile and Mexico as well as PagoFX, PagoNxt’s franchise for international peer-to-peer payments.