Summary

Soomit believes there are storing TPV tailwinds and a Brazilian earnings inflection is coming. But not till 2023. These tailwinds include the cash to digital momentum. However, whilst the top line is impressive, earnings momentum is yet to follow. That said, hopefully we are at a peak in Brazilian rate cycle. But there are other complicating factors – POS depreciation, timing of Pagbank loss declines, unknown path for Stoneco credit. Base case is Q3 23 before there is a significant earnings inflection. Amongst the payment names Soomit see’s most upside in dLocal. The pure play pick in Brazil is PagSeguro. He continues to like MercadoLibre for the mix of Payments/Fintech and E-commerce exposure.

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