Microsoft partners with dLocal to reach new customers in emerging markets
By Pavithra R
Uruguay based FinTech company dLocal, providing cross-border payments platform connecting global merchants with emerging markets, has announced partnering with Microsoft to reach new customers in emerging markets with localized payment methods.
Under the partnership, as its initial step, Microsoft has launched local acquiring for both credit and debit cards in Nigeria. Microsoft, in the coming months, will use dLocal’s Payins solution to add additional popular local payment methods, as well as expand to include other emerging markets, globally.
“Nigeria’s cashless initiative is driving growth for e-commerce and digital payments services, and domestic credit cards are a large part of the market. Authorization rates are an important factor in improving sales volume in e-commerce and providing a positive experience for customers. We are pleased to partner with Microsoft and provide them with the ability to accept payments that are widely used in these target markets to help fuel their continued growth in the region, and beyond,” said Meirav Adi, VP Sales of dLocal.
Under the agreement, shoppers on the Microsoft Store website in Nigeria will be able to pay with local credit cards for various products, and Family subscriptions. The unprecedented COVID-19 pandemic has resulted in rising of global gaming worldwide, which undisputably accelerated the need to create a more inclusive purchasing experience to expand its payment options for customers in Nigeria, and beyond, to satisfy the demand.
Previously, customers could only make payments with international credit cards, triggering steep exchange fees & higher rates of declined transactions due to exchange rate volatility. By partnering with dLocal to offer locally issued Visa and Mastercard card payments, Microsoft will be able to operate in Nigeria with improved authorization rates.
Local card acquiring is part of dLocal’s Payins solution that allows merchants to collect payments from customers in emerging markets in respective local currency. The primary benefit for the merchant is the access to a variety of local payment methods along with the possibility to receive funds in USD, EU or any other currency within the countries dLocal operates in, without having to establish its local entity.
dLocal’s Payins solution is currently available in 26 markets:
- Latin America: Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay
- Africa: Cameroon, Egypt, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa
- Asia: Bangladesh, China, India, Indonesia, Turkey.
Founded in 2016, dlocal is a 360 payments technology platform designed to handle mass online payments in emerging markets. It helps in eliminating cross-border payment complexities and minimizing operational costs. The company recently raised $200 mn investment and became Uruguay’s first unicorn.
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