DLocal Limited

Moat drivers: (1) Switching costs for enterprise merchants integrating a single API across 40+ jurisdictions, payment types and compliance regimes; (2) Intangible/regulatory assets from licenses and bank/local payment relationships that take time to replicate; (3) Scale and process know‑how in FX, pay‑outs and retries that can lift conversion.

These are real and appear to be strengthening as DLocal adds licenses (e.g., UK FCA Authorized Payment Institution) and enters new partnerships (Deel, MoneyGram, Juspay, BVNK, Coda, Bolt) which expand coverage and capabilities.

That said, the business lacks the classic two‑sided network effect of card networks and faces well‑funded rivals (Adyen, Stripe, local PSPs). Efficient scale exists in certain smaller markets where regulatory friction deters new entrants, but take‑rate compression with volume tiers is a structural counterweight.

Overall we view the moat as narrow but durable if execution stays high.