Cross-border payment platform dLocal has teamed up with Cleeng to introduce local payment solutions in emerging markets, particularly focusing on Brazil.

Rising Subscription Services and Digital Content in Brazil

The Brazilian digital subscription services sector is experiencing significant growth. This growth can largely be attributed to the high internet penetration rates observed in the region, which are among the highest in Latin America. The broader market for digital transformation, which includes these services, is expected to continue its upward trajectory, driven by a strong demand for digital and recurring offerings.

Despite this growth, challenges remain, such as recurring billing issues and high churn rates due to limited credit card usage and payment failures. Local payment solutions are becoming more accessible, addressing these problems and enhancing the subscription experience for consumers across Brazil.

Partnering for Enhanced Subscription Services

dLocal and Cleeng aim to tackle these challenges by integrating Cleeng’s subscriber management platform with dLocal’s local payment infrastructure, starting in Brazil with the Pix system. This collaboration is expected to simplify subscription billing processes, reducing failure risks and improving conversion rates.

In this partnership, Cleeng will function as the Merchant of Record for D2C subscription platforms and apps, while dLocal will handle the pay-in process in Brazil via Pix payments, orchestrated through Primer’s technology. Future plans include scaling capabilities to include credit card acquiring services, thereby expanding payment coverage across the country.