We provide a wide range of affordable solutions and tools for merchants and consumers. These include a
variety of cash-in and cash-out options with features designed to attract and retain clients, provide
them with access to working capital and help them manage their cash flow.
The PagSeguro Ecosystem
The Free PagBank Digital Account
The free PagBank digital account, which is the core of our client offering for both merchants and
consumers, centralizes all cash-in options, functionalities, services and cash-out options in a single
ecosystem so that our clients can grow their businesses in a safe, affordable, scalable and simple way,
all without needing a bank account. The free PagBank digital account has a 100% online onboarding
process, without paperwork, with a quick turnaround and a high acceptance rate. We offer functionalities
such as bill payments, top up prepaid mobile phone, Uber, Spotify and/or Google Play credits, wire
transfers, peer to peer cash transfers, prepaid credit cards, cash cards, loans, investments, QR code
payments, and payroll portability, among other digital banking services.
Merchants and consumers can sign up for a free PagBank digital account, gaining access to all of the
offerings in our ecosystem, through a single online contract that can be completed in minutes without
paperwork. By signing up with us and requesting one of our devices, merchants can automatically start
accepting 37 cash-in methods, all with antifraud protection, and can access our software business
management tools. For merchants who require more complex functionalities, we offer value-added services
and features such as the early payment of installment receivables, accounting reconciliation and
shipping solutions. With our free PagBank digital account, merchants may transfer their revenues to a
checking account or directly on our platform by (i) buying online, (ii) making peer to peer or wire
transfers, (iii) making QR code purchases, (iv) paying bills, (v) topping up mobile phone, Uber, Spotify
and/or Google Play credits or (vi) transferring their balance to the PagSeguro prepaid card or using the
cash card, allowing them to buy goods and services in-person and online or withdraw cash at more than
one million Cirrus network ATMs in Brazil and abroad.
We believe these products and services create a “network growth effect.” The advantages of our digital
payment solutions for merchants drive growth in their businesses, and the advantages of our digital
payment solutions for consumers lead them to prefer merchants who offer these solutions, resulting in
the acquisition of new clients through word-of-mouth recommendations by both merchants and consumers.
Our main products and services fall into the following categories:
- • Cash-In Solutions:
- Our cash-in methods can be accepted through web checkout, in-app checkout
or in-person using our POS devices. They include credit and debit cards, meal vouchers,
boletos, peer to peer and wire transfers and bank debits;
- Instant payments;
- Our payroll portability allows consumers to have their salaries directly
deposited to our free PagBank digital account;
- Instant wire transfers (TEDs) and peer to peer transfers;
- Issuance of boletos that can be paid electronically or at any bank branch;
- Loans;
- Investments: a new feature for our free PagBank digital account through
which we will pay interest on account balances maintained for at least 30 days.
- • Early payment of installment receivables: Our early payment of installment
receivables feature helps our merchants offer the installment payment option to their clients paying
by credit card, without sacrificing their own cash flow. In addition to generating financial income
for us, this early payment feature is an important source of working capital for merchants, in
particular for our Micro-Merchants and SMEs, who may not otherwise have efficient access to capital
from banks or traditional financial institutions.
- • Advanced Built-in Functionalities and Value-Added Services and Features: Our
PagBank digital account comes with a number of advanced built-in functionalities, provided free of
charge, as well as value-added services and features designed to help both consumers and merchants:
- PagSeguro credit cards for merchants;
- Card reconciliation services through R2Tech;
- ERP services through NetPOS;
- Bill payments through Tilix;
- Ecommerce support through Yamí.
- • Cash-Out Solutions:
- Online purchases via eWallet;
- PagSeguro prepaid cards and cash cards;
- On-platform peer to peer transfers;
- Instant Central Bank wire transfers;
- Cross-border remittances;
- Bill payments;
- Top up prepaid mobile phone, Uber, Spotify and/or Google Play credits;
- QR code transactions with PagSeguro terminals.
Recent Innovations to our Product and Services Offering
We constantly strive to innovate our product and services offering, providing our merchants and consumers
with new and improved features and functionalities to help them increase efficiency in their businesses,
more effectively manage their cash flows and improve user experience. To this end, since May 2018 to the
date of this prospectus supplement, we have introduced the following new services and products:
- • In May 2018, we launched our Bill Payment Solution. This feature is offered to our clients free of
charge through their free PagBank digital accounts and eliminates the need to cash out in order to
pay bills. This solution supports utilities, consumer and tax bill payments;
- • In May 2018, we launched our Moderninha Plus as a replacement to our Moderninha Wi-Fi POS device.
The Moderninha Plus is offered for the same price as the Moderninha Wi-Fi and features enhancements
such as improved design, increased battery life, a faster processor and is NFC enabled;
- • In June 2018, we began offering clients using our i-Banking app PagSeguro Minha Conta the option
to top up credits on their prepaid mobile phones, Uber, Spotify and/or Google Play using the balance
of their free PagSeguro digital account;
- • In July 2018, we launched a P2P solution that allows merchants and consumers to transfer their
balances between PagBank digital accounts free of charge. For P2P, our “social payment” tool also
allows our clients to request payments by sending a web link via social media directly to the person
paying, creating a fast and easy way for anyone to send and receive money electronically. Users can
request payments even if they do not have a website, and the person paying does not need to register
with PagSeguro and may pay through a variety of options, including credit card, boleto or bank
deposit. With our Pag.ae social payment tool, our customers can request payments using a link and
can send this link to one or more payer(s) via e-mail, social network or messaging service such as
WhatsApp, using the recipient’s phone number or e-mail address. The payer clicks on the link and can
make the payment easily in various ways (credit card, boleto or bank deposit). Pag.ae allows the
recipient to pay in up to 12 installments;
- • In July 2018, we introduced a QR code paying solution, which enables consumers to make purchases
with our free PagBank digital account by simply scanning the QR code (created using our proprietary
QR code technology) generated by the merchant’s PagSeguro Vendas app, Moderninha Pro, Moderninha
Smart or Moderninha Wi-Fi. After scanning the QR code, the consumer’s eWallet app will authenticate
and finalize the transaction by scanning the consumer’s fingerprint on his or her smartphone;
- • In September 2018, we added an InApp boleto billing feature which enables merchants and
individuals to issue unlimited boletos through the app as a payment method;
• In October 2018, we launched the Moderninha Smart, a modern, portable and fully integrated Android
based POS device that offers a full integration of hardware, our apps and a fast and secure payments
network. This POS device is able to accept payments through Wi-Fi, Bluetooth, 4G, NFC and QR Codes;
- • In October 2018, we introduced Pags Capital, a lending product with a small number of clients
selected according to characteristics such as registered account date, TPV and frequency. Pags
Capital charges lending fees that are almost three times lower than those of incumbent banks. We
expect this product to increase client loyalty and to help our clients gain access to working
capital in order to grow their businesses;
- • In November 2018, we launched a new merchant sales panel through which merchants can generate
reports and statements as well as manage their sales through our i-Banking app PagSeguro Minha
Conta;
- • In March 2019, we launched a PagSeguro Visa NFC enabled cash card that is linked directly with the
balance of the PagBank digital account without the need to reload the card, unlike our PagSeguro
prepaid cards;
- • In March 2019, we launched our new sales app PagSeguro Vendas 2.0 through which merchants can add
products and manage POS software. By using this app, merchants are able to increase productivity and
manage their sales and inventory, among other items. Our new sales app PagSeguro Vendas 2.0 is
easily integrated with our POS devices;
- • In April 2019, we introduced the Instant Payments feature which enables merchants to receive
payments immediately following debit and credit card transactions (both with and without
installments) at the same cost as our one day payment election service;
- • In May 2019, we added the Payroll Portability feature, which provides anyone working in Brazil the
ability to have their salary deposited directly into their free PagBank digital account at no cost;
- • In May 2019, we also enabled onboarding through our PagBank digital account app, allowing consumer
clients to sign up for a free PagBank digital account and manage all of their services directly
through our app for free through an inApp registration process that typically takes less than three
minutes to complete;
- • In May 2019, we also launched a PagSeguro Visa credit card that has no annual or membership fees
to our best merchants. The card is accepted in Brazil and abroad and the card’s information can be
stored in the free PagBank digital account to permit NFC or QR Code transactions;
- • In May 2019, furthermore, we officially launched PagBank, our free PagBank digital account, which
offers banking services through the PagBank mobile app. PagBank enables us to expand into the
banking market which, according to research conducted by the Company and Goldman Sachs & Co. LLC
dated May 2019, is 14 times larger than the payments market;
- • In July 2019, we launched the Minizinha Chip 2 which is an additional POS device and an upgraded
version of the Minizinha Chip that features a better user experience, NFC communication and a larger
screen;
- • In August 2019, we acquired 100% of the software provider Yamí Serviços Technológicos Ltda., or
Yamí, which provides a back-office platform for e-commerce and marketplace, assisting merchants,
particularly with exchanges and returns, and is compatible with major e-commerce platforms in Brazil
such as VTEX and Oracle. Furthermore, the platform is a gateway specialized in split payments;
- • In September 2019, we launched a new feature for our free PagBank digital account through which we
will pay interest on account balances maintained for at least 30 days. We believe this feature will
not only increase loyalty and engagement to our digital banking ecosystem but also help us acquire
new PagBank users;
- • In September 2019, we began offering clients using our PagBank digital account the option to top
up Uber, Spotify and Google Play credits using the balance of their free PagBank digital account;
- • We currently plan to launch the Tilix feature of our PagBank digital account app in October 2019,
which is expected to facilitate the management and payment of bills through a simple and
user-friendly interface.