Report on Digital Payment Innovations and Sustainable Development Goals in Latin America

StoneCo Ltd.: Driving Financial Inclusion and Economic Growth in Brazil

StoneCo Ltd. (STNE) is advancing its digital ecosystem through relentless product innovation, significantly benefiting micro, small, and medium-sized businesses (MSMBs) in Brazil. These innovations align with several Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Key Innovations and Services

• Pix QR Code Solution: Enables instant peer-to-merchant (P2M) payments integrated with Point of Sale (POS) systems for simplified reconciliation.
• TapTon: Facilitates mobile payment acceptance via Android and iOS devices.
• Payment Link: Generates personalized payment URLs for ease of transactions.
• Web Checkout (via Pagar.me platform): Streamlines online shopping to improve conversion rates.
• POS Gateway: Supports in-store payments.
• Payment Service Provider Platform: Caters to marketplaces and omni-channel players through Pagar.me.
• Split Payments: Allows division of a single transaction among multiple recipients.
• Prepayment Solutions: Accelerate access to receivables for merchants.

Impact on Sustainable Development Goals

1. SDG 1 – No Poverty: By facilitating faster and more accessible payments, StoneCo supports MSMBs in improving their cash flow and financial stability.
2. SDG 8 – Decent Work and Economic Growth: The company’s cloud-based POS and ERP platforms (Linx, Trinks, Sponte) enable digital transformation, promoting economic growth and job creation.
3. SDG 9 – Industry, Innovation, and Infrastructure: StoneCo’s integration with Brazil’s expanding payment ecosystem fosters innovation and builds resilient infrastructure.
4. SDG 10 – Reduced Inequalities: The focus on financial inclusion helps bridge the gap for underserved MSMBs in Brazil.

Market Trends and Growth

• Pix transaction volume increased by 95% year-over-year.
• Card transactions rose by 10% in the first quarter of 2025.
• StoneCo’s platforms are becoming essential infrastructure for merchants transitioning from cash to digital payments.

MercadoLibre, Inc.: Expanding Financial Inclusion Across Latin America

MercadoLibre, Inc. (MELI), through its Mercado Pago platform, offers a comprehensive suite of digital payment solutions that significantly contribute to SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Innovative Payment Solutions

• Digital wallet supporting peer-to-peer transfers, bill payments, and QR code-based transactions.
• Mobile point-of-sale (MPOS) devices simplifying in-store digital payments.
• Testing of in-chat payments via WhatsApp.
• Enabling Pix-based cross-border payments for Brazilian tourists in Argentina.

Contribution to Sustainable Development Goals

1. SDG 1 – No Poverty: Enhances access to financial services for underserved populations.
2. SDG 8 – Decent Work and Economic Growth: Supports MSMBs by simplifying payment processes and expanding market reach.
3. SDG 10 – Reduced Inequalities: Promotes financial inclusion across diverse socioeconomic groups in Latin America.

NU Holdings Ltd.: Simplifying Financial Transactions and Promoting Accessibility

NU Holdings Ltd. (NU), primarily through its digital banking brand Nubank, offers a range of digital payment products that advance SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 8 (Decent Work and Economic Growth) in Latin America.

Product Portfolio

• NuPay: Enables secure, one-click checkouts within the Nubank app, eliminating the need for card details.
• NuConta: Digital account supporting PIX transfers, bill payments, ATM withdrawals, mobile top-ups, and virtual debit cards.
• NuTap: Mobile POS solution allowing small businesses to accept card payments.

Alignment with Sustainable Development Goals

1. SDG 8 – Decent Work and Economic Growth: Facilitates easier financial transactions, supporting small businesses and economic participation.
2. SDG 9 – Industry, Innovation, and Infrastructure: Promotes innovative digital banking infrastructure.
3. SDG 10 – Reduced Inequalities: Improves financial accessibility for underserved populations.

Conclusion

The digital payment innovations by StoneCo Ltd., MercadoLibre, Inc., and NU Holdings Ltd. are pivotal in advancing the Sustainable Development Goals across Latin America. By enhancing financial inclusion, supporting MSMBs, and fostering innovation, these companies contribute significantly to economic growth, reduced inequalities, and resilient infrastructure development in the region.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • Promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
   • Supporting micro, small, and medium-sized businesses (MSMBs) in Brazil and Latin America through digital payment solutions and financial inclusion.
2. SDG 9: Industry, Innovation and Infrastructure
   • Building resilient infrastructure, promoting inclusive and sustainable industrialization and fostering innovation.
   • Innovations in digital payment ecosystems and cloud-based platforms that enhance financial infrastructure.
3. SDG 10: Reduced Inequalities
   • Reducing inequality within and among countries by expanding financial inclusion.
   • Providing accessible digital financial services to underserved populations and MSMBs.
4. SDG 17: Partnerships for the Goals
   • Strengthening the means of implementation and revitalizing global partnerships for sustainable development.
   • Collaboration between fintech companies and digital platforms to expand financial services.

2. Specific Targets Under Those SDGs

1. SDG 8 Targets
   • 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
   • 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.
2. SDG 9 Targets
   • 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being.
   • 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors and encourage innovation.
3. SDG 10 Targets
   • 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
4. SDG 17 Targets
   • 17.17: Encourage and promote effective public, public-private and civil society partnerships.

3. Indicators Mentioned or Implied in the Article

1. Financial Inclusion and Digital Payment Usage
   • Volume of Pix transactions growing 95% year over year.
   • 10% rise in card transactions in Q1 2025.
   • Number of merchants adopting digital payment solutions such as POS systems, mobile POS, and payment links.
2. Access to Financial Services
   • Number of users of digital wallets and mobile payment platforms (e.g., Mercado Pago, Nubank’s NuConta).
   • Adoption rate of innovative payment technologies like QR code payments, in-chat payments, and cross-border Pix payments.
3. Innovation and Infrastructure
   • Integration and expansion of cloud-based POS and ERP platforms.
   • Deployment of new payment solutions facilitating faster and simpler transactions.

4. Table: SDGs, Targets and Indicators

Source: finance.yahoo.com