Revenues and Cost of Services (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure of Revenues and Cost of Services [Line Items]

Breakdown of Revenue From Contracts With Customers Per Type of Service

The breakdown of revenue from contracts with customers per type of service is as follows:


	2022			2021			2020
Transaction revenues (i)		415,444			241,814			103,489
Other revenues (ii)		3,481			2,306			654
Revenues from payment processing (iii)		418,925			244,120			104,143
Cost of services		(216,758	)		(113,677	)		(44,065	)
Gross profit		202,167			130,443			60,078

(i)

Transaction revenues are comprised of processing fees, foreign exchange fee, installment fee, chargebacks, refunds fee, and other transactional fees. These fees are recognized as revenue at a point in time when a payment transaction, or its reversal in the case of chargeback and refunds, has been processed.

(ii)

Other revenues are mainly comprised of minor fees, such as initial setup fees, maintenance fees, minimum monthly fees, and small transfer fees.

(iii)

In 2022 revenues include an amortization charge of USD 567 (USD 200 and USD 67 for 2021 and 2020, respectively) related to prepaid assets, as detailed in Note 17: Other assets.

Summary of Cost of Services

Cost of services are composed of the following:


	2022		2021		2020
Processing costs (i)		206,223		107,276		41,655
Hosting expenses (ii)		4,331		3,351		1,257
Salaries and wages (iii)		1,411		706		497
Amortization of intangible assets (iv)		4,793		2,344		656
Cost of services		216,758		113,677		44,065

(i)

Mainly corresponds to fees that financial institutions (banks, local acquirers or payment methods) charge the Group, which are typically a percentage of the transaction value but in some instances, it also could be a fixed fee mostly in the case of payouts and are related to payment processing, cash advances, and installment payments. It varies from one institution to another and usually depends on the settlement period contracted with each such institution, the payment method used and the type of product (whether it is a payin or a payout). It also includes conversion and expatriation or repatriation costs, charged by banks and brokers. In 2022 the amount includes USD 273 of net foreign exchange loss (after considering gains from hedges of USD 14,559) on the processed volume between the processing date and the expatriation or repatriation of funds date (foreign exchange losses of USD 2,100 and USD 2,977 in 2021 and 2020, respectively).

(ii)

Expenses related to hosting services for the Group’ s payment platform.

(iii)

Consist of salaries and wages of the operations department directly involved in the day-to-day operations. For further detail refer to Note 9: Employee Benefits.

(iv)

Amortization of intangible assets corresponds to the amortization of the internally generated software (i.e., d.Local’ s payment platform) by the Group. For further detail refer to Note 20: Intangible Assets.