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  "documentTitle": "dLocal (DLO)",
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  "authorName": "Carson Block",
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      "text": "Our Research and Sell-Side Show that DLO's Pricing is Comparable to that of its Competitors",
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      "text": "According to most former executives and employees with whom we spoke, DLO's take rates with global merchants are not meaningfully higher than its competitors. Because DLO's business has consistently focused on large, \"Global Merchants\", its ability generate large commission rates is limited. In 2019, 2020, and 2021, respectively, global merchants made up 93%, 92%, and 96% of its total customer base.",
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      "text": "While large merchants do not decide allocations on price alone, to win volumes the payment providers' take rates and other KPIs need to be competitive. Large merchants generally are",
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      "text": "According to a former senior executive, an example of this partner model was MercadoLibre, which offered Disney+. According to the same source, MercadoLibre offered Disney+ to DLO, but with the caveat that it was not a fee share; MercadoLibre capped the fee 0.2% plus FX.",
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      "text": "In aggregate, these partners apparently deliver 15%-20% of payins and 10%-15% of payouts. In most of these relationships, DLO reportedly splits the conversion fees and earns the FX. Payouts with partners are largely run based on a fixed fee plus a percentage for FX...",
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      "text": "We learned that DLO often partners with global partners, PSPs which have the relationships with major global merchants to supply local payment options, accepting low conversion fees in exchange for volume and a chance to earn some FX fees...",
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      "text": "DLO's prospectus claims its \"direct connections with merchants serve as a strong competitive advantage and barrier to entry for competing providers, and makes incremental volume that flows through [its] platform highly margin accretive.\" — DLO F-1, May 5, 2021, p.82",
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      "text": "49-57 Footnotes detailing sources and DLO 20-F filings.",
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