PagoNxt – strong growth and maiden operating profit for Santander’s payment business

Santander’s payment subsidiary, PagoNxt, posted impressive results for Q4 2022, showing continued growth in payment volumes and achieving its first operating profit. This performance highlights the success of Santander’s strategy to in-source and consolidate its worldwide payment activities. PagoNxt comprises all of Santander’s payment assets, including Getnet, a leading multi-national merchant acquirer, Ebury (trade finance), Payments Hub (wholesale payments), and Superdigital, a financial marketplace for the economic inclusion of the underbanked.

Getnet, the largest division of PagoNxt, experienced substantial growth in Q4 with a 38% increase in payment volume to €48 billion, and a 42% increase for 2022 as a whole to €165 billion. The number of active merchants also increased 4% to 1.32 million, with an annualized payment volume per merchant rising 25% to €145,000. 

Getnet has become the third-largest acquirer in Latin America, having launched acquiring businesses in Argentina and Uruguay and accelerating its presence in Chile. In Brazil, Getnet’s volume rose 16%, driven by strong eCommerce activity, while in Mexico, volume grew 35% due to increased average ticket size and new partnerships with financial institutions and ISVs. Anna Botin, Santander’s Chair, is particularly pleased with progress in Mexico explaining that merchant acquiring “is a key product to engage our customers and be able to do more business in the bank. We are currently #2 by total payment volume.”

In Europe, Getnet has expanded to include active customers in 12 countries, with strong growth driven by a booming Spanish market and the return of tourists. The company’s management reports it has developed a vertical solution for airlines. Europe volume grew 39%, also boosted by the transfer of Santander Portugal’s acquiring business to Getnet Europe.

PagoNxt’s overall financial performance was highly positive, with revenue growing 86% in Q4 to €298 million and expenses increasing 52%. Although the business only made a small operating profit of €3 million, this marks the first time it has been in the black, and is a positive sign for the future.

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