Why Are PagSeguro Shares Trading Higher Today?

October 15, 2021 1:01 PM | 1 min read | Make a Comment

PagSeguro Digital Ltd PAGS clarified a "negligible" impact to 2022 revenue and net income from the Brazilian Central Bank hearing 89/2021 on capping debit and prepaid card transaction interchange fees.
PagSeguro considered the various moving parts and, analyzing internal data, ran multiple hypothetical scenarios.
The conclusion was regardless of the outcome of the public hearing. The impact will be slightly positive for PagSeguro from 2023 from expected cost savings in the acquiring business interchange.
PagSeguro's complimentary payments businesses of acquiring and cards issuance create a natural hedge for the company.
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Price Action: PAGS shares traded higher by 4.44% at $36.71 on the last check Friday.