Santander’s Q3 2022 results included an update for its payments subsidiary PagoNxt. Covering merchant acquirer Getnet, B2B-focused One Trade and Ebury and LatAm consumer-focused Superdigital, PagoNxt continues to make a loss, but did see strong gains in the quarter.
Increases in both business activity and volumes across PagoNxt’s brands and regions resulted in Q3 revenues increasing 63% year-on-year in constant terms, while revenue for the first nine months grew 96% YoY or 75% in constant terms. This puts it well ahead of its full-year target of 50% YoY revenue growth for 2022.
The company’s merchant acquiring segment, which is focused on its Getnet brand, saw total payments volume (TPV) for the first nine months of 2022 increase by 29% YoY, while active merchants increased 3% YoY to 1.27 million.
In Brazil, where Getnet has a strong established presence, the focus has been on profitable growth through driving SME adoption of its pre-payments products and additional services, which led to an 18% YoY increase in TPV for the first three quarters. Getnet Mexico also saw TPV climb 35% over the same period as a result of increased volume per merchant, as well as a number of successful open market distribution partnerships. Meanwhile, Getnet Europe saw significant growth, climbing 42% YoY for the nine-month period as the company continues to expand in the continent.
PagoNxt’s trade segment, which includes One Trade and Ebury, saw active customers top 30,000, up from 25,000 in Q2 2022 and double that of Q3 2021. It also added international trade services in Spain, Chile and the US during Q3. The company’s emerging market consumer brand Superdigital also expanded its offerings in the quarter, adding financial products including credit cards and loans in Brazil and Argentina.
Notably, PagoNxt did see losses begin to climb again after a run of reductions, and there was no mention of the previous projection of reaching breakeven by the end of 2022. The company highlighted that the brand was on course to become Santander’s wholesale payments provider for all non-card payment types, and identified three focuses of PagoNxt’s strategy. These were scaling up its data-driven platform; accelerating commercial growth; and increasing penetration in Europe, South America and North America through both partnerships and direct commercialisation. For PagoNxt, profit looks set to remain deprioritised in favour of growth for some time to come.