Did dLocal’s (DLO) Alchemy Pay Partnership Just Shift Its Crypto Payments Investment Narrative?

• Alchemy Pay announced a partnership with dLocal to integrate dLocal’s local payment infrastructure and enable instant bank transfers in Argentina, supporting faster fiat-crypto conversions and expanding payment solutions across Latin America.
• This move highlights increasing demand for seamless, localized crypto payments within emerging markets, as fintech companies seek to bridge traditional and digital financial systems.
• We’ll examine how dLocal’s integration of crypto-to-fiat capabilities through Alchemy Pay may reshape its investment narrative and future growth prospects.

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DLocal Investment Narrative Recap

Shareholders in DLocal need to believe in sustained digitization of payments in emerging markets and the company’s ability to broaden and diversify its client base. The recent partnership with Alchemy Pay aims to expand crypto-to-fiat payment solutions in Latin America, but it does not directly change the immediate story around customer concentration risk, which remains the most important short-term issue, nor does it materially affect the current main growth catalysts.

The September alliance with Western Union is especially relevant, as it builds on DLocal’s push to extend its local payments reach across Latin America and offer more value to global merchants. This combination of new partnerships and product innovation continues to reinforce one of DLocal’s critical long-term growth drivers.

On the other hand, investors should be acutely aware of how heavily DLocal relies on revenue from its top merchants, as...

Read the full narrative on DLocal (it's free!)

DLocal's narrative projects $1.7 billion revenue and $346.3 million earnings by 2028. This requires 25.7% yearly revenue growth and a $200.4 million earnings increase from $145.9 million today.

Uncover how DLocal's forecasts yield a $15.94 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Twenty-one community-sourced fair values for DLocal range widely from US$10 to US$195.39, highlighting highly divergent views. Amid this diversity, DLocal’s concentrated merchant exposure could quickly affect outlooks if major clients scale back, so consider several opinions before deciding.

Explore 21 other fair value estimates on DLocal - why the stock might be a potential multi-bagger!

Build Your Own DLocal Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DLocal research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DLocal research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DLocal's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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