Among the digital banks in Brazil, the Nubank is leader in number of customers. But on the profit factor, the PagBank PagSeguro come out ahead. At least in relation to the third quarter of 2022. The institution ended the period with net profit of BRL 380 million🇧🇷 The amount is nine times greater than that registered by Nubank.
The net revenue of PagBank PagSeguro between July and September this year was R$ 4.03 billion. This is a 45% increase compared to the same period in 2021 (BRL 2.77 billion). The amount of BRL 380 million is the highest net profit ever recorded by the company since the end of 2019.
What explains such a favorable performance? The company reveals that, in the third quarter alone, it conquered 1.1 million new customers. Considering the first nine months of 2022, PagBank PagSeguro obtained 4.1 million new accounts.
For Alexandre Magnani, CEO of the company, the offer of payment solutions for online and face-to-face sales contributed to these results. The same goes for providing services such as business management (PagVendas) and loyalty program (ClubePag).
Nubank is worth more, however…
The third quarter of 2022 was also celebrated by Nubank (Nu Holdings)🇧🇷 In the period, the company obtained a net profit of US$ 7.8 million (R$ 42 million).
It is not a high value in view of the registered revenue of US$ 1.3 billion (R$ 6.9 billion). However, in previous quarters, Nubank highlighted only adjusted net income, which excluded expenses related to share compensation and tax effects. There is reason to celebrate.
Nubank’s customer base is huge: there were 70 million people in the third quarter of 2022 — 66.9 million in Brazil alone. The company’s market value is estimated at US$ 19.5 billion.
These numbers make Nubank the largest digital bank in Brazil. PagBank PagSeguro ranks second with 26 million customers (16 million of which are active) and an estimated market value of nearly US$4 billion.
But there is a difference between the operations of the two companies that explains, at least in part, the excellent performance of PagBank PagSeguro in the third quarter: range of services.
While Nubank works mainly as a digital bank, PagBank PagSeguro follows this model plus that of a payment platform (including the offer of card machines).
In the third quarter, revenue as a digital bank (PagBank) was R$ 339 million. Payment operations had a much more expressive performance, accounting for R$ 3.72 billion of net revenue.
Magnani himself highlights this strategy:
PagBank PagSeguro continues to build a complete two-sided ecosystem — digital bank and payment platform — through a single application, a single platform and a single customer service.