• It's like Square (Block Inc.) for small businesses in Brazil.
• Think of it as Square (Block Inc.) meets PayPal, but focused on the Brazilian market.

• Payment Processing Solutions (Acquiring): Provides a range of point-of-sale (POS) devices and online payment gateways enabling merchants to accept various forms of digital payments.
• Digital Banking Services (PagBank): Offers a comprehensive digital account for individuals and businesses, including debit/credit cards, bill payments, and peer-to-peer transfers.
• Credit and Lending Services: Extends loans, working capital advances, and other credit products primarily to its merchant base and digital account holders.

PagSeguro Digital (PAGS) primarily serves businesses, specifically a vast number of Micro, Small, and Medium-sized Enterprises (MSMEs) and individual entrepreneurs in Brazil. Due to this highly fragmented customer base and its business model focusing on these numerous smaller entities, PagSeguro does not have a few "major customer companies" that can be individually named, unlike companies that serve a limited number of large enterprise clients.

Instead, its customer base consists of millions of merchants across various sectors. The company's services are tailored to meet the diverse needs of these businesses. Here are the primary categories of customers that PagSeguro serves:

• Micro and Small Businesses (MSMEs) & Individual Entrepreneurs: This is PagSeguro's core and largest customer segment. It includes a wide array of brick-and-mortar stores (e.g., retail shops, bakeries, pharmacies), service providers (e.g., beauty salons, repair shops, clinics), street vendors, freelancers, and other individual entrepreneurs. These customers typically use PagSeguro's point-of-sale (POS) machines (like Moderninhas), payment links, and digital accounts (PagBank) to accept card payments, manage their finances, and access digital banking services.
• Online Merchants & E-commerce Businesses: PagSeguro provides payment gateway solutions and e-commerce tools for businesses that operate primarily online. This category includes online stores, digital service providers, and platforms that need to process online transactions securely and efficiently.
• Medium-sized Businesses: While its primary focus is smaller entities, PagSeguro also caters to medium-sized businesses that require more sophisticated payment solutions, multi-channel payment acceptance (in-store, online, mobile), and a broader range of financial services, including working capital and advanced reporting.

It's also worth noting that through its PagBank digital account, PagSeguro serves millions of individuals, many of whom are linked to the MSME segment (e.g., receiving payments, managing personal finances) or are consumers utilizing the digital bank for everyday transactions. However, the core revenue generation for PagSeguro stems from its merchant services for businesses.

Here is the list of major suppliers for PagSeguro Digital (PAGS):

• Amazon Web Services (part of Amazon.com, Inc.) (AMZN)
• Visa Inc. (V)
• Mastercard Incorporated (MA)
• Elo

Alexandre Magnani - Chief Executive Officer

Mr. Magnani has served as the Chief Executive Officer of PagSeguro Digital Ltd. since October 2022. Prior to this role, he was the Chief Operating Officer of PagSeguro Digital Ltd. from October 2021 to September 2022, and the Director of the company's Acquiring Business Unit from 2015 to 2021. Before joining PagSeguro, Mr. Magnani worked for nearly 15 years at Mastercard International, where he led Latin American regional new business development and retailer issuers initiatives. He also spent over six years at Redecard and Credicard in Brazil.

Artur Schunck - Chief Financial and Investor Relations Officer and Chief Accounting Officer

Mr. Schunck holds the positions of Chief Financial and Investor Relations Officer and Chief Accounting Officer at PagSeguro Digital Ltd. He has held multiple roles within PagSeguro's Finance department, leading various teams including Finance, Treasury, Controllership, BI, FP&A, Logistics, Financial Services, and Credit Products. Before his current roles at PagSeguro, he served as the Director of Financial Planning and Treasury for UOL – Universo Online S.A. from February 2014 to April 2015. Prior to joining the UOL group, Mr. Schunck worked at Walmart Brasil Ltda. from January 2006 to December 2013, where he held several financial management positions, ultimately becoming the Director of FP&A and Strategy.

Ricardo Dutra - Principal Executive Officer of UOL Group

Mr. Dutra is currently the CEO of UOL Group, which encompasses PagSeguro Digital Ltd., since October 2022. He previously served as the Chief Executive Officer of PagSeguro Digital Ltd. from February 2016 until October 2022. Mr. Dutra first worked for the UOL Group from 1997 to 2005 and rejoined in 2009 as Country Manager at UOL Argentina, a role he held until 2010. Between 2007 and 2009, he worked as a management consultant at Bain & Company. As CEO of UOL, he was also responsible for the Content, Advertising, and Services areas.

Luis Frias - Chairman of the Board

Mr. Frias serves as the Chairman of PagSeguro Digital's board of directors and was the Principal Executive Officer between 2017 and 2022. He joined Grupo Folha in 1981 and has been its principal executive officer since 1989. In 1996, he founded UOL, a pioneering Brazilian internet company. As Principal Executive Officer and Chairman of the Board of Directors of UOL, he significantly expanded the company's business through both organic growth and more than 20 acquisitions, covering digital content and products, e-learning, and cloud/IT services, as well as the PagSeguro Digital Ltd. financial technology business.

Eduardo Alcaro - Vice-Chairman

Mr. Alcaro is currently the Vice-Chairman of PagSeguro Digital and also holds the position of Chief Financial Officer of UOL Edtech. He has been a member of PagSeguro's board of directors since 2017. From 2011 until 2021, he served as the Chief Financial and Investor Relations Officer and Chief Accounting Officer of PagSeguro Digital, and concurrently as the Chief Financial Officer of the UOL group. In November 2020, he was appointed as the Chief Business Development Officer.

The key risks to PagSeguro Digital's business are primarily driven by the macroeconomic environment in Brazil, intense competition within the payments industry, and the evolving regulatory landscape.

1. Macroeconomic Challenges in Brazil: PagSeguro Digital is highly susceptible to Brazil's macroeconomic conditions, particularly elevated interest rates. High interest rates increase the company's financial costs and exert significant pressure on both its banking and payments segments. This environment can lead to higher defaults and negatively impact investor confidence.
2. Intense Competition and Market Saturation: The Brazilian payments market is characterized by fierce competition and saturation, with numerous fintechs and traditional banks vying for market share. The widespread adoption of PIX, Brazil's instant payment system, further intensifies competitive pressure and can erode acquiring revenues for PagSeguro, contributing to slowing total payment volume (TPV) growth and shrinking margins in its core payments business.
3. Regulatory and Legal Environment: PagSeguro operates within a complex regulatory and legal framework in Brazil. Changes in laws and regulations, particularly those concerning data protection and privacy, could adversely affect the company's operations. There is also ongoing debate under Brazilian law regarding whether providing early payment of receivables to merchants could be characterized as "lending," an activity restricted to financial institutions, which could negatively impact PagSeguro's financial performance if interpretations change or new laws are enacted.

The intensification of competition in the Brazilian payments market, particularly from large traditional banks aggressively expanding their digital payment and SME banking offerings, as well as from other strong fintech players like StoneCo and Mercado Pago. This competitive pressure is driving price compression, leading to lower transaction fees and margins, and forcing companies to offer increasingly attractive bundled financial services to retain and acquire merchants.

For PagSeguro Digital (PAGS), the addressable markets for their main products and services in Brazil are as follows:

• Payment Processing Solutions: The Brazil payment processing solutions market generated a revenue of USD 1,336.6 million in 2023. This market is expected to reach USD 3,955.5 million by 2030, growing at a compound annual growth rate (CAGR) of 16.8% from 2024 to 2030. PagSeguro's offerings in this area include Point-of-Sale (POS) devices and an online payment gateway. The real-time payments market in Brazil, driven by Pix, was valued at USD 2.67 billion in 2025 and is forecast to reach USD 4.97 billion by 2030, reflecting a 12.51% CAGR.
• Digital Banking Services: The Brazil digital banking market size reached USD 2.33 billion in 2024. This market is projected to reach USD 4.61 billion by 2033, exhibiting a CAGR of 7.90% during 2025-2033. PagSeguro's digital banking platform, PagBank, offers services such as savings accounts, personal loans, and prepaid cards. The neobanking market in Brazil, a significant segment within digital banking, reached USD 4.20 billion in 2024 and is expected to grow substantially to USD 118.05 billion by 2033, with an impressive CAGR of 44.80% during 2025-2033.
• E-commerce Solutions: The Brazil e-commerce market size reached USD 455.6 billion in 2024. It is expected to grow to USD 1,499.3 billion by 2033, demonstrating a CAGR of 12.65% during 2025-2033. The transactional volume for Brazil's digital commerce market was USD 276.9 billion in 2023 and is projected to reach USD 500 billion in 2026. PagSeguro provides tools and services to support businesses in establishing and expanding their online presence, including fraud prevention.

1. Expansion of the PagBank Ecosystem and Credit Portfolio

2. Broadening Client Base and Deepening Market Penetration

3. Diversification and Innovation in Digital Financial Services

Share Repurchases

• PagSeguro Digital actively pursued share repurchase programs, completing a $250 million program in 2024 and subsequently launching a new $200 million program.
• As of June 30, 2025, the company had repurchased 15,021,012 shares year-to-date, totaling R$696 million, and immediately initiated a third repurchase program of up to US$200 million.
• Over the last 12 months (as of August 2025), PagSeguro allocated R$1.9 billion to shareholder returns through dividends and buybacks, contributing to a total of over R$5.5 billion in shareholder returns from 2021-2026.

Share Issuance

No significant share issuances were prominently disclosed within the last 3-5 years.

Inbound Investments

No large inbound investments from third-party strategic partners or private equity firms were prominently disclosed within the last 3-5 years, apart from the initial business combinations at the start of the period (2020).

Outbound Investments

• In July 2020, PagSeguro acquired 100% of Zygo for R$8,000 (thousands).
• In August 2020, the company acquired 100% of CDS for R$2,379 (thousands).
• These acquisitions aimed to boost investments in new technologies, products, and services for PagSeguro's digital ecosystem.

Capital Expenditures

• PagSeguro Digital invested R$2.3 billion in technology in 2024.
• The forecast for capital expenditures in fiscal year 2025 is R$2.2 billion, maintaining a flat year-over-year trend.
• The consistent capital expenditure levels for 2025 align with expectations, even as management indicates that increasing Total Payment Volume (TPV) is not a priority due to perceived industry saturation in the Payments segment.