In our never-ending quest to keep our readers of Marketing In Asia (M.I.A) well-informed, we recently had the privilege of interacting directly with Frederico Mazzoli, the VP Product of dLocal. This conversation offered an insider’s view into the complexities and capabilities of dLocal’s innovative Invoice Collection solution. Our discussion covered an array of topics such as market volatility, regulatory compliance, payment method diversity and more.
This article shares Mazzoli’s insights, which were personally gathered by M.I.A, and casts light on how dLocal is revolutionising the financial landscape of emerging markets.
A Solution for Currency Fluctuations in Emerging Markets
When asked about how dLocal’s Invoice Collection addresses the specific challenges related to currency fluctuations and market instability in emerging markets, Mazzoli provided detailed insight. “Invoice Collection offers dynamic foreign exchange, meaning users can invoice in USD amounts that can be converted into a customer’s local currency. This process makes it simpler for the customer to make payments, as they don’t have to worry about the price changing or a conversion fee from their side.”
To ensure stability, Mazzoli shared, “When a payment link for a USD invoice is created, dLocal establishes an FX rate (USD > local currency), and dLocal absorbs the FX fluctuations.” Hence, customers pay a fixed amount in their local currency, while the merchant receives the USD amount with no surprises.
Ensuring Compliance in Diverse Jurisdictions
Mazzoli explained that dLocal’s no-code tools are geared to handle unique tax requirements of different countries. “dLocal adheres to all regulatory compliance requirements in each region we operate in,” he assured. Through dLocal’s licensing, merchants gain access to official rates, can upload any required tax documentation, and let dLocal present it to local authorities as needed. In certain situations, dLocal even collects and pays taxes on behalf of the users or the merchant.
Expansive Payment Methods and Foreign Exchange Markets
“dLocal enables access to credit and debit cards (both international and domestic schemes), bank transfers, eWallet payments, cash, mobile money, and any other relevant alternate payment methods in the 40+ countries we operate,” Mazzoli revealed. The company’s robust infrastructure ensures seamless fund processing, expatriation, and settlement for B2B transactions. By partnering with multiple local players for the same payment method, dLocal guarantees redundancy and better approval rates for customers.
Empowering Organizational Efficiency
The Invoice Collection Solution is a boon for the finance, reconciliations, and accounts receivable departments within merchants’ organisations. Mazzoli asserted, “Invoice Collection minimizes admin for these departments, allowing collection to occur in a single platform.” The solution streamlines processes and enhances efficiency by enabling the collection of receivables in over 40 emerging markets from one unified platform and reporting system, without any technical effort or local operations.
Customization and Flexibility: The Hallmarks of dLocal
The Invoice Collection Solution offers high levels of customization and flexibility, including the option to create a customised workflow. From logo personalization on payment links to adjusting the look and feel to match the merchant’s branding, dLocal’s customization options allow merchants to choose the best solution for their business needs.
If a merchant wants to customize or build their checkout for invoice collection, it would be sent to dLocal through API. A merchant could choose this option to develop their checkout page and workflow.Mazzoli
Ensuring Data Security and Privacy
As part of their commitment to ensuring data security and privacy, dLocal is PCI DSS Level 1 compliant, demonstrating that every card payment experience with them meets the highest security standards.
The Future Evolution of dLocal
Looking forward, Mazzoli conveyed that dLocal’s future evolution will be shaped by customer feedback and merchant demand. “We’ll open new markets as we see merchant demand, and develop new features enabling business,” he said. As the payment landscape continues to evolve, dLocal intends to adapt to merchants’ vision, local constraints, and possibilities throughout Africa, Asia, and Latin America.
In sum, the in-depth insights provided by Mazzoli offer a detailed look into the impressive capabilities of dLocal’s Invoice Collection, revealing a strong commitment to simplifying cross-border transactions and fostering a robust global marketplace.