MONTREAL - Nuvei (TSX:NVEI) Corporation (NASDAQ:NVEI) (TSX:NVEI), a Canadian fintech firm, has announced the launch of its direct local acquiring capabilities in Colombia, marking the company as the first global payments provider to offer such services in the country. This move is set to enhance the company's Latin American footprint and provide a more localized payment experience for customers.
The introduction of direct local acquiring allows both local and international partners to process card payments in Colombia without the need for intermediaries. This simplification of payment processes is expected to offer benefits such as increased card authorization rates, reduced settlement times, and optimized processing resources.
Nuvei's expansion in Latin America comes as the region experiences rapid e-commerce growth. Colombia, the third-largest e-commerce market in Latin America, saw a volume of US$42.3 billion in 2023, with projections to reach US$87 billion by 2026 at a 27% CAGR.
Philip Fayer, Nuvei's Chair and CEO, emphasized the strategic importance of the Colombian market and the company's commitment to growth in Latin America. Nuvei already operates in over eleven Latin American markets through direct integration with local acquirers and networks.
The company's global platform offers businesses operating in Colombia enhanced reporting capabilities by consolidating transaction data, which aids in data analysis and decision-making. Colombian businesses aiming for quick international expansion can also benefit from Nuvei's extensive global reach.
Nuvei's presence in 50 markets and connectivity to 680 local alternative payment methods (APMs) reflects its strategy to provide hyper-localized payment solutions on a global scale, supporting businesses in their international growth while optimizing payment functions.
This expansion is part of Nuvei's broader mission to accelerate the business of clients worldwide through its flexible technology, which encompasses payment processing, payouts, card issuing, banking, and risk and fraud management services.
The information for this article is based on a press release statement from Nuvei Corporation.
InvestingPro Insights
As Nuvei Corporation (NASDAQ:NVEI) (TSX:NVEI) makes headway in the Colombian market, the company's financial data reflects notable developments. According to the latest metrics from InvestingPro, Nuvei's market capitalization stands at $3.49 billion USD, showcasing its substantial size in the fintech sector. This expansion into Colombia could potentially bolster Nuvei's revenue, which for the last twelve months as of Q3 2023 was reported at $1.088 billion USD, with an impressive revenue growth rate of 30.41%.
Investors interested in the stock should note the volatility in Nuvei's price movements, as one of the InvestingPro Tips highlights. This could be an important consideration for those looking to capitalize on short-term price fluctuations or for long-term investors who need to gauge their risk tolerance. Moreover, with a P/E Ratio (Adjusted) for the same period at 52.11, the company's earnings valuation is becoming more attractive, especially when coupled with analysts' predictions that Nuvei will turn profitable this year.
Another InvestingPro Tip that could be of interest to shareholders is the strong return over the last three months, with a 26.76% price total return, suggesting a positive trend in investor sentiment. This, along with a significant price uptick over the last six months, indicates a recovery phase for the stock, which could be an opportune moment for investment considerations.
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