Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Registration Statement | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Document Shell Company Report | false |
Entity Incorporation, State or Country Code | E9 |
Trading Symbol | PAGS |
Entity Registrant Name | PAGSEGURO DIGITAL LTD. |
Entity Address, Address Line One | Av. Brigadeiro Faria Lima, 1384, 4º andar, parte A |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 01451-001 |
Entity Address, Country | BR |
Entity Central Index Key | 0001712807 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Class A common shares, par value US$0.000025 |
Security Exchange Name | NYSE |
Entity File Number | 1-38353 |
Document Accounting Standard | International Financial Reporting Standards |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Av. Brigadeiro Faria Lima, 1384, 4º andar, parte A |
Entity Address, City or Town | São Paulo |
Entity Address, Postal Zip Code | 01451-001 |
Entity Address, Country | BR |
Country Region | 55 |
City Area Code | 11 |
Local Phone Number | 3914-9524 |
Contact Personnel Email Address | ir@pagseguro.com |
Contact Personnel Name | Artur Schunck |
Class A common shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 202,053,365 |
Class B common shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 127,554,861 |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Audit Information [Abstract] | ||
Auditor Location | São Paulo, | São Paulo, Brazil |
Auditor Name | PricewaterhouseCoopers Auditores Independentes Ltda. | Ernst & Young Auditores Independentes S.S. |
Auditor Firm ID | 1351 | 1448 |
Consolidated balance sheets
Consolidated balance sheets R$ in Thousands, $ in Millions | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) |
Current assets | ||
Cash and cash equivalents | R$ 1794362 | R$ 1640065 |
Financial investments | 782,647 | 979,837 |
Accounts receivable | 23,428,522 | 16,042,970 |
Inventories | 49,537 | 30,429 |
Tax receivable | 469,490 | 388,975 |
Other receivables | 194,776 | 164,805 |
Total current assets | 26,719,334 | 19,247,081 |
Non-current assets | ||
Judicial deposits | 40,224 | 7,449 |
Accounts receivable | 228,880 | 33,570 |
Deferred income tax and social contribution | 120,762 | 83,296 |
Other receivables | 11,710 | 10,293 |
Investment | 15,666 | 16,400 |
Property and equipment | 2,289,052 | 1,802,613 |
Intangible assets | 1,650,176 | 1,123,620 |
Total non-current assets | 4,356,470 | 3,077,241 |
Total assets | 31,075,804 | 22,324,322 |
Current liabilities | ||
Payables to third parties | 13,217,150 | 10,101,510 |
Trade payables | 578,004 | 335,539 |
Payables to related parties | 543,621 | 58,336 |
Deposits | 3,056,444 | 571,996 |
Salaries and social security charges | 259,724 | 175,198 |
Taxes and contributions | 63,934 | 26,042 |
Provision for contingencies | 27,653 | 17,063 |
Borrowings | 1,005,787 | 0 |
Derivative financial instruments | 14,317 | 0 |
Deferred revenue | 162,566 | 186,219 |
Other liabilities | 73,719 | 102,572 |
Total current liabilities | 19,002,919 | 11,574,475 |
Non-current liabilities | ||
Deferred income tax and social contribution | 1,391,760 | 1,132,595 |
Deposits | 77,552 | 194,090 |
Provision for contingencies | 13,910 | 11,741 |
Deferred revenue | 17,300 | 27,336 |
Other liabilities | 70,165 | 56,626 |
Total non-current liabilities | 1,570,687 | 1,422,388 |
Total liabilities | 20,573,606 | 12,996,863 |
Equity [abstract] | ||
Issued capital | 26 | 26 |
Capital reserve | 6,076,286 | 5,784,288 |
Other comprehensive income | 645 | 491 |
Equity valuation adjustments | (22,372) | (22,372) |
Retained earnings | 4,732,624 | 3,566,522 |
Treasury shares | (285,011) | (13,609) |
Total equity attributable to owners of parent | 10,502,198 | 9,315,346 |
Non-controlling interests | 0 | 12,113 |
Total equity | 10,502,198 | 9,327,459 |
Total liabilities and equity | R$ 31075804 | R$ 22324322 |
Consolidated statement of incom
Consolidated statement of income R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021BRL (R$)R$ / shares | Dec. 31, 2020BRL (R$)R$ / shares | Dec. 31, 2019BRL (R$)R$ / shares | |
Profit or Loss | |||
Revenue from transaction activities and other services | R$ 6784806 | R$ 4508719 | R$ 3376068 |
Revenue from sales | 0 | 0 | 174,226 |
Financial income | 3,514,425 | 2,177,360 | 2,030,511 |
Other financial income | 149,491 | 128,594 | 126,404 |
Total revenue and income | 10,448,722 | 6,814,673 | 5,707,209 |
Cost of sales and services | (5,775,895) | (3,772,298) | (2,762,087) |
Selling expenses | (1,523,908) | (617,463) | (565,170) |
Administrative expenses | (877,559) | (563,893) | (427,366) |
Financial expenses | (790,635) | (109,232) | (38,138) |
Other income (expenses), net | 7,302 | 22,904 | (1,909) |
Profit before income taxes | 1,488,027 | 1,774,691 | 1,912,539 |
Current income tax and social contribution | (119,801) | (62,840) | (24,471) |
Deferred income tax and social contribution | (201,942) | (419,551) | (521,043) |
Income tax and social contribution | (321,743) | (482,391) | (545,514) |
Net income for the year | 1,166,284 | 1,292,300 | 1,367,025 |
Attributable to: | |||
Equity holders of the parent | 1,166,102 | 1,291,658 | 1,365,597 |
Non-controlling interests | R$ 182 | R$ 642 | R$ 1428 |
Basic earnings per common share - R$ | R$ / shares | R$ 3.5303 | R$ 3.9225 | R$ 4.1613 |
Diluted earnings per common share - R$ | (per share) | R$ 3.5105 | R$ 3.9163 | R$ 4.1475 |
Consolidated statement of compr
Consolidated statement of comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of comprehensive income | |||
Net income for the year | R$ 1166284 | R$ 1292300 | R$ 1367025 |
Other comprehensive income that may be reclassified to the statement of income in subsequent periods | |||
Loss on financial assets through OCI | (117) | 959 | (425) |
Loss on investments designated at fair value through OCI | 411 | (421) | (42) |
Income tax and social contribution | (140) | 143 | 14 |
Net other comprehensive income for the year | 1,166,438 | 1,292,981 | 1,366,572 |
Attributable to | |||
Equity holders of the parent | 1,166,256 | 1,292,339 | 1,365,144 |
Non-controlling interests | 182 | 642 | 1,428 |
Net income for the year | R$ 1166438 | R$ 1292981 | R$ 1366572 |
Consolidated statement of chang
Consolidated statement of changes in equity - BRL (R$) | Total | Share capital | Treasury shares | Capital reserve | Share-based long-term incentive plan (LTIP) | Retained earnings | Equity valuation adjustments | Other comprehensive income | Total | Non-controlling interests |
Balance at Dec. 31, 2018 | R$ 6574376000 | R$ 26000 | R$ 39532000 | R$ 5647263000 | R$ 40871000 | R$ 909267000 | R$ 7588000 | R$ 263000 | R$ 6550570000 | R$ 23806000 |
Net income for the year | 1,367,025,000 | 1,365,597,000 | 1,365,597,000 | 1,428,000 | ||||||
Loss on financial assets through OCI | (425,000) | (425,000) | (425,000) | |||||||
Loss on financial assets through OCI | (28,000) | (28,000) | (28,000) | |||||||
Non-controlling acquisition | (17,634,000) | (14,784,000) | (14,784,000) | (2,850,000) | ||||||
Shares issued | 0 | 38,992,000 | (38,992,000) | |||||||
(LTIP) of treasury shares | 0 | |||||||||
Share based long term incentive plan (LTIP) | 93,369,000 | 93,369,000 | 93,369,000 | |||||||
Acquisition of treasury shares | (1,735,000) | (1,735,000) | (1,735,000) | |||||||
Balance at Dec. 31, 2019 | 8,014,948,000 | 26,000 | (41,267,000) | 5,686,255,000 | 95,248,000 | 2,274,864,000 | (22,372,000) | (190,000) | 7,992,564,000 | 22,384,000 |
Net income for the year | 1,292,300,000 | 1,291,658,000 | 1,291,658,000 | 642,000 | ||||||
Loss on financial assets through OCI | 959,000 | 959,000 | 959,000 | |||||||
Loss on financial assets through OCI | (278,000) | (278,000) | (278,000) | |||||||
Non-controlling acquisition | (10,913,000) | 0 | 0 | (10,913,000) | ||||||
Shares issued | 0 | 3,834,000 | (3,834,000) | |||||||
(LTIP) of treasury shares | 0 | 72,433,000 | (72,433,000) | |||||||
Share based long term incentive plan (LTIP) | 75,218,000 | 75,218,000 | 75,218,000 | |||||||
Acquisition of treasury shares | (44,775,000) | (44,775,000) | (44,775,000) | |||||||
Balance at Dec. 31, 2020 | 9,327,459,000 | 26,000 | (13,609,000) | 5,690,089,000 | 94,199,000 | 3,566,522,000 | (22,372,000) | 491,000 | 9,315,346,000 | 12,113,000 |
Net income for the year | 1,166,284,000 | 1,166,102,000 | 1,166,102,000 | 182,000 | ||||||
Loss on financial assets through OCI | (117,000) | (117,000) | (117,000) | |||||||
Loss on financial assets through OCI | 271,000 | 271,000 | 271,000 | |||||||
Non-controlling acquisition | (12,295,000) | 0 | 0 | (12,295,000) | ||||||
Shares issued | 0 | 138,665,000 | (138,665,000) | |||||||
(LTIP) of treasury shares | 0 | 13,410,000 | (13,410,000) | |||||||
Share based long term incentive plan (LTIP) | 305,408,000 | 305,408,000 | 305,408,000 | |||||||
Acquisition of treasury shares | (284,812,000) | (284,812,000) | (284,812,000) | |||||||
Balance at Dec. 31, 2021 | R$ 10502198000 | R$ 26000 | R$ 285011000 | R$ 5828754000 | R$ 247532000 | R$ 4732624000 | R$ 22372000 | R$ 645000 | R$ 10502198000 | R$ 0 |
Consolidated statement of cash
Consolidated statement of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Profit before income taxes | R$ 1488027 | R$ 1774691 | R$ 1912539 |
Adjustments to reconcile profit before tax to net cash flows: | |||
Depreciation and amortization | 768,593 | 376,335 | 128,348 |
Chargebacks | 664,268 | 288,309 | 200,633 |
Accrual of provision for contingencies | 25,938 | 6,409 | 8,227 |
Share based long term incentive plan (LTIP) | 370,629 | 122,870 | 93,369 |
Reversal of taxes and contributions | (4,638) | (84,294) | 0 |
Loss on disposal of property, equipment and intangible assets | 28,393 | 19,465 | 9,393 |
Derivative Financial Instruments, net | 5,952 | 0 | 0 |
Interest accrued | 230,555 | 17,222 | (78,649) |
Other (income) cost, net | 103,667 | (18,185) | (26,936) |
Changes in operating assets and liabilities | |||
Accounts receivable | (9,303,060) | (5,586,919) | (3,125,537) |
Financial investments (mandatory guarantee) | (84,534) | 43,229 | (161,426) |
Inventories | (132,398) | 31,602 | 14,216 |
Reversal of taxes and contributions | (36,565) | (206,221) | (22,386) |
Other receivables | (62,084) | (78,744) | (68,008) |
Deferred revenue | (33,689) | 145,005 | 68,550 |
Other liabilities | (17,312) | 67,669 | (7,923) |
Payables to third parties | 2,940,739 | 4,173,264 | 1,002,092 |
Trade payables | 243,585 | 72,328 | 89,962 |
Receivables from (payables to) related parties | 471,585 | 38,250 | (8,610) |
Adjustments for increase (decrease) in deposits from customers | 2,276,041 | 758,003 | 0 |
Salaries and social charges | (8,091) | 7,605 | 32,866 |
Taxes and contributions | (11,499) | (34,438) | (1,475) |
Provision for contingencies | (17,763) | (1,127) | (4,822) |
Total adjustments to reconcile profit (loss) | (93,661) | 1,932,328 | 54,423 |
Income tax and social contribution paid | (76,782) | (46,384) | (88,184) |
Interest income received | 1,068,450 | 266,719 | 522,542 |
Net cash flows from (used in) operating activities | 898,007 | 2,152,663 | 488,781 |
Investing activities | |||
Amount paid on acquisitions, net of cash acquired | (43,367) | (345,602) | (17,739) |
Purchases of property and equipment | (972,274) | (1,522,769) | (333,376) |
Purchases and development of intangible assets | (779,555) | (523,785) | (369,415) |
Redemption (Acquisition) of financial investments | 324,247 | 530,667 | (1,109,619) |
Net cash flows (used in) from investing activities | (1,470,949) | (1,861,489) | (1,830,149) |
Financing activities | |||
Borrowings | 1,012,086 | 0 | 0 |
Acquisition of treasury shares | (257,992) | (44,775) | (1,735) |
Transaction with non-controlling interest | 0 | 0 | (15,992) |
Payment of leases | (15,148) | 0 | 0 |
Capital increase by non-controlling shareholders | (11,707) | (10,289) | (223) |
Net cash flows (used in) from financing activities | 727,238 | (55,064) | (17,950) |
Net (decrease) increase in cash and cash equivalents | 154,297 | 236,110 | (1,359,095) |
Cash and cash equivalents at beginning of period | 1,640,065 | 1,403,955 | 2,763,050 |
Cash and cash equivalents at end of period | R$ 1794362 | R$ 1640065 | R$ 1403955 |
Accounting policies, changes in
Accounting policies, changes in accounting estimates and errors | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of voluntary change in accounting policy [abstract] | |
Presentation and preparation of the consolidated financial statements and significant accounting policies | 2.1. Basis of preparation of the consolidated financial statements These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The consolidated financial statements are presented in thousands of Brazilian reais, unless otherwise indicated, which is the functional currency of PagSeguro Group. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying PagSeguro Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3. These consolidated financial statements as of December 31, 2021 and 2020 and for the three years ended December 2021, were authorized for issuance by PagSeguro Digital’s Board of Directors on March 15, 2022. 2.2. Basis of consolidation PagSeguro Group consolidates all entities over which it has control. Control is achieved when PagSeguro Group is exposed or has rights to variable returns with its involvement with the investee and can affect those returns through its power over the investee’s relevant activities. Subsidiaries are all entities over which PagSeguro Digital has control. Subsidiaries are fully consolidated from the date PagSeguro Group obtains control of the subsidiary and ceases when PagSeguro Group loses control of the subsidiary. The subsidiaries included in the consolidation are described in Note 4. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. 2.3. Foreign currencies i) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency sport rates of exchange at the reporting date. Foreign exchange gains and losses resulting from the settlement of these transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. ii) Group companies On consolidation, the assets and liabilities of foreign operations are translated into Reais at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. 2.4. Cash and cash equivalents Cash and cash equivalents are held for the purpose of meeting short-term cash needs and not for investment or any other purposes. PagSeguro Group classifies as cash equivalents a financial investment that can be immediately converted into a known amount of cash and is subject to immaterial risk of change in value. PagSeguro Group classifies financial instruments with original maturities of three months or less as cash equivalents. 2.5. Financial instruments – initial recognition and subsequent measurement i) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition and subsequently measured at amortized cost, fair value through other comprehensive income (“OCI”), and fair value through profit or loss. The classification depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. For a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (“SPPI”) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling (such as the financial investment disclosed on Note 7). Financial assets include cash and cash equivalents, financial investments, accounts receivable, judicial deposits and other receivables. Subsequent measurement The subsequent measurement of financial assets depends on their classification, which may be (i) financial assets at amortized cost; (ii) financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments); (iii) financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and (iv) financial assets at fair value through profit or loss. Financial assets at amortized cost Financial assets at amortized cost relating to debt instruments are subsequently measured using the effective interest method and are subject to impairment. Financial assets at amortized cost relating to equity instruments are measured at cost of acquisition. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost includes cash and cash equivalents, accounts receivable, judicial deposits, investments and other receivables. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are presented at fair value in the balance sheet, with the corresponding gains or losses recognized in the statement of income. The Group does not hold any financial asset within this category. Financial assets at fair value through OCI For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Group’s debt instruments at fair value through OCI includes investments in Brazilian Treasury Bonds, as disclosed in Note 7. Financial assets designated at fair value through OCI (equity instruments) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. The Group does not hold any financial asset within this category. Derecognition A financial asset or, where applicable, a part of a financial asset or part of a group of similar financial assets, is derecognized when: • The rights to receive cash flows from the asset expire; or • PagSeguro Group transfers its rights to receive cash flows from the asset, or assumes an obligation to pay the received cash flows in full to a third party under a “pass-through” arrangement; and (a) transfers virtually all the risks and benefits of the asset, or (b) neither transfers nor retains virtually all the risks and benefits of the asset, but transfers control of the asset. When PagSeguro Group has transferred its rights to receive cash flows from an asset and has not transferred or retained substantially all the risks and benefits of the asset, this asset is recognized to the extent of PagSeguro Group’s continuing involvement in the asset. In such case, PagSeguro Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that PagSeguro Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of the consideration that PagSeguro Group may be required to repay. ii) Impairment of financial assets PagSeguro Group assesses, at the balance sheet date, if there is objective evidence that a financial asset or a group of financial assets is impaired. The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The Group applies a credit risk policy taking into consideration the possibility of default by: (a) the card issuers, which have the obligation of transferring to the credit and debit card labels the fees charged for the transactions carried out by their card holders, and/or (b) the acquirers, which are used by the PagSeguro Group to approve transactions with the issuers. To mitigate this risk, the PagSeguro Group has established a Credit and Liquidity Risk Committee, whose responsibility is to assess the level of risk of each of the card issuers served by PagSeguro Group, as discussed in Note 26. For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. The Group’s debt instruments at fair value through OCI comprise solely investments in Brazilian Treasury Bonds, considered to be low credit risk investments. iii) Financial liabilities Initial recognition and measurement Financial liabilities are classified at initial recognition, as financial liabilities at fair value through profit or loss, or amortized cost. PagSeguro Group determines the classification of its financial liabilities at initial recognition. Financial liabilities include payables to third parties, payables to related parties, trade payables and other payables. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification, which may be as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and financial liabilities designated at fair value through profit or loss at initial recognition. Financial liabilities are classified as held-for-trading if acquired for sale in the short term. This category includes derivative financial instruments which do not meet the hedge accounting criteria defined by IFRS 9 – Financial Instruments. Gains and losses on held-for-trading liabilities are recognized in the statement of income. Financial liabilities at amortized cost After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost, using the effective interest rate method, and are recognized in the statement of income. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in “Financial expenses” in the statement of income. Derecognition A financial liability is derecognized when the obligation is discharged, canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and recognition of a new liability, and the difference in the respective carrying amounts is recognized in the statement of income. iv) Financial instruments – offsetting Financial assets and liabilities are presented net in the balance sheet if, and only if, there is an existing and enforceable legal right to offset the amounts recognized and an intention to offset or to realize the asset and settle the liability simultaneously. v) Fair value of financial instruments The fair value of financial instruments actively traded in organized markets is determined based on quoted market prices at the balance sheet date, without a deduction of transaction costs. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These techniques include the use of recent arm’s length transactions, reference to other similar instruments, discounted cash flow analysis or other valuation methods. vi) Current versus non-current classification The PagSeguro Group presents financial assets and liabilities in the balance sheet based on current and non-current classification. An asset is current when it is: (i) expected to be realized or intended to be sold or consumed in the normal operating cycle; (ii) held primarily for the purpose of trading; (iii) expected to be realized within twelve months after the reporting period; or (iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: (i) it is expected to be settled in the normal operating cycle; (ii) it is held primarily for the purpose of trading; (iii) it is due to be settled within twelve months after the reporting period; or (iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. vii) Derivative Financial Instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. At inception of the hedge relationship, the group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the remaining period until maturity, using a recalculated effective interest rate. 2.6. Accounts receivable Accounts receivable include mainly the receivables from credit/debit card issuers and acquirers originated from transactions through PagSeguro Group payment platform and credit operations. Accounts receivables are initially recorded at the fair value net of the expected credit losses. If the term is equivalent to one year or less, accounts receivable is classified as current assets, if not, as non-current assets. Based on PagSeguro Brazil’s risk assessment, the expected credit loss is mainly comprised of transactions approved by large financial institutions that have a low overall risk level based on ratings received from major credit rating agencies. Additionally, these financial institutions are the legal obligors to the accounts receivable. (note 26). For debit and credit cards receivables from the clients, the credit risk is low based on historical credit losses and is updated considering other external factors, such as credit ratings assigned by FITCH, S&P and Moody’s. PagSeguro Group incurs financial expenses when an election to receive early payment of accounts receivable from financial institutions is made. This financial expense is recognized at the time the financial institution agrees to liquidate the accounts receivable due in installments on a prepaid basis, and it is recorded as Financial expenses in the statement of income. 2.7. Inventories Inventories consist of POS devices. Inventories are stated at historical cost. The Company used the average cost method to account for inventories' cost and corresponding provision for losses is recognized when sale value is higher than its purchase cost. 2.8. Property and equipment Property and equipment is stated at historical cost, net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditures that are directly attributable to the acquisition of the items and may also include finance costs related to the acquisition of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with these costs will flow to PagSeguro Group and that such benefits can be reliably measured. The carrying amount of replaced items or parts is derecognized. All other repairs and maintenance expenses are charged to the statement of income during the year in which they are incurred. The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. An item of property and equipment is derecognized upon disposal or when future economic benefits are expected from its use or disposal. Any gain or loss on disposal (calculated as the difference between the net disposal proceeds with the carrying amount of the asset) is recognized within “Other (expenses) income, net” in the statement of income when an asset is derecognized. An asset’s carrying amount is immediately written down to its recoverable amount when the asset’s carrying amount is greater than its estimated recoverable amount. See note 2.10. 2.9. Intangible assets Software licenses are recorded at historical cost. Software licenses are amortized on the straight-line basis over the estimated useful life of the software which is approximately five years. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by PagSeguro Group are recognized as intangible assets. Directly attributable costs relating to internal development of software are capitalized as part of the software product, which mainly includes costs incurred with employees and third-party contracted services. Other development expenditures that do not meet the capitalization criteria are expensed as incurred. Development costs previously recorded as an expense are not recognized as an asset in a subsequent period and are included in the income statement. Capitalized computer software development costs are amortized over their estimated useful lives which are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. In 2019 the useful life of software’s developed was changed from three years to five years from the date that technological feasibility is met. This change was based on the following assumptions: i) business strategy, ii) history of use of goods/technology, iii) guarantee of suppliers, iv) technical quality of assets and v) preventive maintenance. 2.10. Impairment of non-financial assets The PagSeguro Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the PagSeguro Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pos-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. The Group bases its impairment calculation on most recent budgets and forecast calculations. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is impaired when the recoverable amount of the CGU is less than it is carrying amount, an impairment loss is recognized. 2.11. Payables to third parties Payables to third parties refer to funds payable and amounts due to merchants that use PagSeguro Brazil platform. PagSeguro Group recognizes a liability for the transaction amount, net of the transaction cost that will be made available to the merchant on its PagSeguro account. The payables to third parties from installment transactions are estimated based on the fair value, in accordance with the terms of these transactions. 2.12. Deposits The PagSeguro Group has sell-buy back transactions (sales of financial assets with future repurchase agreement). Such repurchase agreements are recorded in term deposits accounts when refers to certificate deposits operations and interbank deposits accounts for financial letter issuance purposes. The difference between sale price and repurchase price is treated as interest and it is recognized during the term of the agreement by effective interest rate method. 2.13. Borrowings Borrowings are initially recognized at fair value less any directly attributable transaction costs. After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, except for the embedded derivative, which is measured at fair value through profit or loss. Gains and losses are recognized in the consolidated income statements when the liabilities are derecognized as well as through the effective interest method amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest method. The effective interest method amortization is included in interest expense in the consolidated income statements. 2.14. Provisions Provisions are recognized when PagSeguro Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When PagSeguro Group expects the value of a provision to be reimbursed, in whole or in part (for example, due to an insurance contract) the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. Expenses associated with any provisions are presented in the statement of income, net of any reimbursements. PagSeguro Group is a party to legal and administrative proceedings. Provisions are established for all contingencies related to lawsuits for which it is probable that an outflow of funds will be necessary to settle the contingency/obligation and a reasonable estimate can be made. The assessment of the likelihood of loss includes the evaluation of available evidence, the hierarchy of laws, available case law, recent court decisions and their importance in the legal system, as well as the opinion of outside legal counsel. The provisions are reviewed and adjusted to reflect changes in circumstances. 2.15. Revenue and income Revenue from contract with customers is recognized as control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services in the ordinary course of PagSeguro Group’s activities. Revenue is presented net of sales and excise taxes and returns. PagSeguro Group’s revenue from contract with customers substantially comprises: • Revenue from transaction activities and other services: Revenue from fees charged for intermediation of electronic payments, and other services such as prepaid cards, which are recognized at the time the purchase is approved by the financial institution. Revenues from fees charged for intermediation of electronic payments are recognized on a gross basis and related transaction costs are recognized as Cost of sales and services, since PagSeguro Group is the principal in the intermediation transaction. PagSeguro Group has primary responsibility for providing the services to customers and directly sets the prices for such services, independently from the related transaction costs agreed between PagSeguro Group and the card schemes or card issuers. • Revenue from sales (recognized until August 30, 2019): Revenue from sales of POS devices and similar items, which is recognized when control of a good is transferred to the customers, i.e., on delivery of the equipment. Under Brazilian consumer law, clients have seven days after ordering Point of Sale equipment (“POS devices”) to cancel the purchase. Returns of devices are accounted for as deductions from revenue from sales at the time the equipment is returned. Revenue is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment at the customer’s location. • Revenue from membership fee: Beginning on September 1st, 2019, the Company charges a non-refundable membership fee at the inception of the contract with customers that provides access to the PagSeguro Group ecosystem. Revenue related to the non-refundable membership fee has been deferred according to the PagSeguro clients’ internal metrics and recognized in deferred revenues. • Income is mostly comprised of financial income recognized because of the discount rate charged on the early payments of payables to third parties (merchants). The income is recognized at the time the merchant agrees to receive a sale in installments on an early payment basis, and it is recorded as financial income in the statement of income. 2.16. Current and deferred income tax and social contribution Current income tax and social contribution Tax assets and liabilities for the current year are calculated based on the expected recoverable amount or the amount payable to the tax authorities. The tax rates and tax laws used to calculate the amount are those enacted or substantively enacted at the balance sheet date in the countries where PagSeguro Group operates and generates taxable income. Current income tax and social contribution related to items recognized directly in equity are recognized in equity. PagSeguro Group periodically evaluates the tax positions involving interpretation of tax regulations and establishes provisions when appropriate. Deferred taxes Deferred taxes arise from temporary differences between the tax bases of assets and liabilities and their carrying amounts at the balance sheet date. Deferred tax liabilities are recognized for all temporary taxable differences, except in the following situations: • When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit; and • On temporary tax differences related to investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized on all deductible temporary differences and tax loss carryforwards, to the extent that it is probable that taxable profit will be available against which they can be offset, except: • When the deferred tax asset related to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss; and • On the deductible temporary differences associated with investments in subsidiaries. Deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and that taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and a deferred tax asset is recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are re-assessed, at each reporting date and are recognized to the extent that it has become probable that future taxable profits will be available to allow their utilization. Based on the local law of the Cayman Islands (specifically, the Companies Law of 1960), there is no taxation on the income earned by companies organized in this jurisdiction. Therefore, PagSeguro Digital has no income tax impacts in the Cayman Islands. For the subsidiaries of PagSeguro Digital, deferred tax assets and liabilities ar |
General Information
General Information | 12 Months Ended |
Dec. 31, 2021 | |
General Information [Abstract] | |
General Information | PagSeguro Digital Ltd. (“PagSeguro Digital” or the “Company”) is a holding company, subsidiary of Universo Online S.A. (“UOL”), referred to, together with its subsidiaries, as the “PagSeguro Group”, was incorporated on July 19, 2017. 99.99% of the shares of PagSeguro Internet Instituição de Pagamento S.A., (formerly PagSeguro Internet S.A.) (“PagSeguro Brazil”) were contributed to PagSeguro Digital on January 4, 2018 and PagSeguro Digital maintains control of PagSeguro Brazil. PagSeguro Brazil is a privately held corporation established on January 20, 2006, headquartered in the city of São Paulo, Brazil, and engaged in providing financial technology solutions and services and corresponding related activities, focused principally on micro-merchants and small and medium-sized businesses (“SMEs”). On July 15, 2020 PagSeguro Group constituted a holding company incorporated under PagSeguro Digital called PagSeg Participações Ltda. (“PagSeg”) and on October 22, 2020, PagSeguro Group constituted another holding company incorporated under PagSeg called PagBank Participações Ltda. ("PagBank Holding"). On December 30, 2020, Pag Bank acquired 20% of the share capital of BoletoFlex Tecnologia e Serviços LTDA. (“BoletoFlex”). Total consideration paid amounted to R$15,000 which was settled in cash on January 4, 2021 and on December 31, 2020 this amount was recognized in other liabilities. PagSeguro Brazil does not have control of BoletoFlex operation, based on IFRS 3. BoletoFlex is not consolidated in these financial statements. On March 18, 2021, PagSeguro Group constituted a holding company incorporated under PagSeguro Digital called PagSeguro Holding Ltd (“PSHC”). Additionally, during the third quarter of 2021, PagSeguro Group established four new subsidiaries under PSHC: Pagseguro Chile SPA (“Pagseguro Chile”), Pagseguro Colombia S.A.S (“Pagseguro Colombia”), PSGP México S.A de C.V. (“PSGP Mexico”) and Pagseguro Peru S.A.C. (“Pagseguro Peru”), these companies do not yet operate in the year ended December 31, 2021. In January 2021, PagSeguro Group submitted a request for Brazilian Central Bank approval of a corporate reorganization involving certain of its subsidiaries, this reorganization was approved by Brazilian Central Bank on August 16, 2021. The proposed PagSeguro Group reorganization is intended to improve administration of the corporate structure and to group the operating subsidiaries under appropriate holding companies based on the services provided by each one. After this corporate reorganization, the group subsidiaries are as follows: • PagSeguro Brazil subsidiaries are PagSeguro Biva Securitizadora de Créditos Financeiras S.A. (“Biva Sec”), Fundo de Investimento em Direitos Creditórios - PagSeguro (“FIDC”), RegistraSeguro S.A. (“RegistraSeguro”), Wirecard Brazil Instituição de Pagamento S.A. (formerly Wirecard Brazil S.A.) (“MOIP”) and Concil Inteligência em Negociação S.A (“Concil”). PagSeguro Brazil acquired 100.00% of the issued shares of Concil on August 12, 2021 as detailed in Note 10. • PagSeg subsidiaries are Net+Phone Telecomunicações Ltda. (“Net+Phone”), Boa Compra Tecnologia Ltda. (“Boa Compra”), BCPS Online Services Lda. (“BCPS”), CDS Serviços Financeiros LTDA. (“CDS”), PagSeguro Biva Serviços Financeiros Ltda (“Biva Serviços”) and PagBank. • PagBank subsidiaries are Tilix Digital Ltda. (“TILIX”), YAMÍ Software & Inovação Ltda. (“YAMÍ”) and Zygo Serviços de Tecnologia S.A. (“ZYGO”). • PSHC subsidiaries are Pagseguro Chile, Pagseguro Colombia, Pagseguro Peru and PSGP México. • BS Holding subsidiary is BancoSeguro S.A. (“Bancoseguro”). • Biva Serviços subsidiary is PagSeguro Biva Correspondente Bancário Ltda (“Biva Corban”). These consolidated financial statements include PagSeguro Brazil, PagSeg, PSHC, BS Holding and corresponding subsidiaries. 1.1 COVID-19 The Company has observed that the main impact of the COVID-19 pandemic in total purchase volume (TPV) has occurred between March and June 2020. In the third and fourth quarter of 2020, most of the cities in Brazil started a reopening process, with a gradual recovery of important commercial activities such as shopping malls, general retail, restaurants, and bars, among other non-essential and in-store businesses. During the year ended December 31, 2021, the Company observed that, in the first three months, there was an increase in the number of people infected by COVID-19 and consequently the return of partial shutdowns and social isolation in several cities and states of the country. In the second quarter of 2021, most of the cities in Brazil accelerated the vaccination of the population, and consequently, the Company saw a graduated reopening process, with extension of opening hours of commercial activities. In the third quarter of 2021, the Company observed the returning of social events with public, consequently the growth of TPV . At the end of the fourth quarter, Brazil began to see an increase in contagions mainly related to Omicron without impact in PagSeguro business. The Company has a significant variable cost structure mainly related to TPV, such as processing, interchange, card scheme fees and chargebacks. Marketing and sales expenses are also variable and depends on the Company’s strategy to leverage new products and services such as PagBank. The Company is also still accompanying the evolution of the Brazilian economy and reassessing, when necessary, the provisions for loss allowance for expected credit losses. The Company has a solid position in terms of cash, liquidity and working capital levels and in the years ended December 31, 2021 and 2020 has not faced impairment of assets due to COVID-19. 1.2 Additional information Wirecard Brazil Instituição de Pagamento S.A. (“MOIP”) is a subsidiary that PagSeguro acquired in October 2020, which represented less than 3% of the Group’s consolidated assets as of December 31, 2021 and less than 2% and 1% of the consolidated revenue and net income for the year ended December 31, 2021. MOIP was involved in a cyberattack between September 25 and September 29, 2021 (the “Incident”). The hackers demanded that the Company make a specified payment to prevent the public disclosure or sale of the targeted hacked data that was compromised in the Incident, which included personal profile information of MOIP customers. At the time of the Incident, MOIP had a distinct and separate IT server and operating environment from the rest of PagSeguro’s IT platform and systems, and therefore none of PagSeguro’s databases, customer information or systems were subject to the Incident, or formed part of the compromised data, beyond those independently within the MOIP IT environment. PagSeguro promptly followed the requirements of applicable Brazilian law, including the filing of a formal report to the Brazilian National Authority for Data Protection (Autoridade Nacional de Proteção de Dados) and Brazilian Central Bank on October 7, 2021. After completion of the assessment, without financial impacts, PagSeguro communicated to the ANPD on January 5, 2022 through a complementary form to the one initially reported on October. During the review of the Incident, PagSeguro not identified evidence of unauthorized access to sensitive information, such as passwords or credit card details. PagSeguro confirms that the Incident has not had a material adverse financial impact on the company or on its customers, and PagSeguro’s IT systems (including MOIP’s IT environment) are operating normally, with heightened security measures undertaken in response to the Incident. |
Presentation and preparation of
Presentation and preparation of the consolidated financial statements and significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Presentation and preparation of the consolidated financial statements and significant accounting policies [Abstract] | |
Presentation and preparation of the consolidated financial statements and significant accounting policies | 2.1. Basis of preparation of the consolidated financial statements These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The consolidated financial statements are presented in thousands of Brazilian reais, unless otherwise indicated, which is the functional currency of PagSeguro Group. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying PagSeguro Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3. These consolidated financial statements as of December 31, 2021 and 2020 and for the three years ended December 2021, were authorized for issuance by PagSeguro Digital’s Board of Directors on March 15, 2022. 2.2. Basis of consolidation PagSeguro Group consolidates all entities over which it has control. Control is achieved when PagSeguro Group is exposed or has rights to variable returns with its involvement with the investee and can affect those returns through its power over the investee’s relevant activities. Subsidiaries are all entities over which PagSeguro Digital has control. Subsidiaries are fully consolidated from the date PagSeguro Group obtains control of the subsidiary and ceases when PagSeguro Group loses control of the subsidiary. The subsidiaries included in the consolidation are described in Note 4. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. 2.3. Foreign currencies i) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency sport rates of exchange at the reporting date. Foreign exchange gains and losses resulting from the settlement of these transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. ii) Group companies On consolidation, the assets and liabilities of foreign operations are translated into Reais at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. 2.4. Cash and cash equivalents Cash and cash equivalents are held for the purpose of meeting short-term cash needs and not for investment or any other purposes. PagSeguro Group classifies as cash equivalents a financial investment that can be immediately converted into a known amount of cash and is subject to immaterial risk of change in value. PagSeguro Group classifies financial instruments with original maturities of three months or less as cash equivalents. 2.5. Financial instruments – initial recognition and subsequent measurement i) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition and subsequently measured at amortized cost, fair value through other comprehensive income (“OCI”), and fair value through profit or loss. The classification depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. For a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (“SPPI”) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling (such as the financial investment disclosed on Note 7). Financial assets include cash and cash equivalents, financial investments, accounts receivable, judicial deposits and other receivables. Subsequent measurement The subsequent measurement of financial assets depends on their classification, which may be (i) financial assets at amortized cost; (ii) financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments); (iii) financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and (iv) financial assets at fair value through profit or loss. Financial assets at amortized cost Financial assets at amortized cost relating to debt instruments are subsequently measured using the effective interest method and are subject to impairment. Financial assets at amortized cost relating to equity instruments are measured at cost of acquisition. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost includes cash and cash equivalents, accounts receivable, judicial deposits, investments and other receivables. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are presented at fair value in the balance sheet, with the corresponding gains or losses recognized in the statement of income. The Group does not hold any financial asset within this category. Financial assets at fair value through OCI For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Group’s debt instruments at fair value through OCI includes investments in Brazilian Treasury Bonds, as disclosed in Note 7. Financial assets designated at fair value through OCI (equity instruments) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. The Group does not hold any financial asset within this category. Derecognition A financial asset or, where applicable, a part of a financial asset or part of a group of similar financial assets, is derecognized when: • The rights to receive cash flows from the asset expire; or • PagSeguro Group transfers its rights to receive cash flows from the asset, or assumes an obligation to pay the received cash flows in full to a third party under a “pass-through” arrangement; and (a) transfers virtually all the risks and benefits of the asset, or (b) neither transfers nor retains virtually all the risks and benefits of the asset, but transfers control of the asset. When PagSeguro Group has transferred its rights to receive cash flows from an asset and has not transferred or retained substantially all the risks and benefits of the asset, this asset is recognized to the extent of PagSeguro Group’s continuing involvement in the asset. In such case, PagSeguro Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that PagSeguro Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of the consideration that PagSeguro Group may be required to repay. ii) Impairment of financial assets PagSeguro Group assesses, at the balance sheet date, if there is objective evidence that a financial asset or a group of financial assets is impaired. The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The Group applies a credit risk policy taking into consideration the possibility of default by: (a) the card issuers, which have the obligation of transferring to the credit and debit card labels the fees charged for the transactions carried out by their card holders, and/or (b) the acquirers, which are used by the PagSeguro Group to approve transactions with the issuers. To mitigate this risk, the PagSeguro Group has established a Credit and Liquidity Risk Committee, whose responsibility is to assess the level of risk of each of the card issuers served by PagSeguro Group, as discussed in Note 26. For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. The Group’s debt instruments at fair value through OCI comprise solely investments in Brazilian Treasury Bonds, considered to be low credit risk investments. iii) Financial liabilities Initial recognition and measurement Financial liabilities are classified at initial recognition, as financial liabilities at fair value through profit or loss, or amortized cost. PagSeguro Group determines the classification of its financial liabilities at initial recognition. Financial liabilities include payables to third parties, payables to related parties, trade payables and other payables. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification, which may be as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and financial liabilities designated at fair value through profit or loss at initial recognition. Financial liabilities are classified as held-for-trading if acquired for sale in the short term. This category includes derivative financial instruments which do not meet the hedge accounting criteria defined by IFRS 9 – Financial Instruments. Gains and losses on held-for-trading liabilities are recognized in the statement of income. Financial liabilities at amortized cost After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost, using the effective interest rate method, and are recognized in the statement of income. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in “Financial expenses” in the statement of income. Derecognition A financial liability is derecognized when the obligation is discharged, canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and recognition of a new liability, and the difference in the respective carrying amounts is recognized in the statement of income. iv) Financial instruments – offsetting Financial assets and liabilities are presented net in the balance sheet if, and only if, there is an existing and enforceable legal right to offset the amounts recognized and an intention to offset or to realize the asset and settle the liability simultaneously. v) Fair value of financial instruments The fair value of financial instruments actively traded in organized markets is determined based on quoted market prices at the balance sheet date, without a deduction of transaction costs. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These techniques include the use of recent arm’s length transactions, reference to other similar instruments, discounted cash flow analysis or other valuation methods. vi) Current versus non-current classification The PagSeguro Group presents financial assets and liabilities in the balance sheet based on current and non-current classification. An asset is current when it is: (i) expected to be realized or intended to be sold or consumed in the normal operating cycle; (ii) held primarily for the purpose of trading; (iii) expected to be realized within twelve months after the reporting period; or (iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: (i) it is expected to be settled in the normal operating cycle; (ii) it is held primarily for the purpose of trading; (iii) it is due to be settled within twelve months after the reporting period; or (iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. vii) Derivative Financial Instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. At inception of the hedge relationship, the group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the remaining period until maturity, using a recalculated effective interest rate. 2.6. Accounts receivable Accounts receivable include mainly the receivables from credit/debit card issuers and acquirers originated from transactions through PagSeguro Group payment platform and credit operations. Accounts receivables are initially recorded at the fair value net of the expected credit losses. If the term is equivalent to one year or less, accounts receivable is classified as current assets, if not, as non-current assets. Based on PagSeguro Brazil’s risk assessment, the expected credit loss is mainly comprised of transactions approved by large financial institutions that have a low overall risk level based on ratings received from major credit rating agencies. Additionally, these financial institutions are the legal obligors to the accounts receivable. (note 26). For debit and credit cards receivables from the clients, the credit risk is low based on historical credit losses and is updated considering other external factors, such as credit ratings assigned by FITCH, S&P and Moody’s. PagSeguro Group incurs financial expenses when an election to receive early payment of accounts receivable from financial institutions is made. This financial expense is recognized at the time the financial institution agrees to liquidate the accounts receivable due in installments on a prepaid basis, and it is recorded as Financial expenses in the statement of income. 2.7. Inventories Inventories consist of POS devices. Inventories are stated at historical cost. The Company used the average cost method to account for inventories' cost and corresponding provision for losses is recognized when sale value is higher than its purchase cost. 2.8. Property and equipment Property and equipment is stated at historical cost, net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditures that are directly attributable to the acquisition of the items and may also include finance costs related to the acquisition of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with these costs will flow to PagSeguro Group and that such benefits can be reliably measured. The carrying amount of replaced items or parts is derecognized. All other repairs and maintenance expenses are charged to the statement of income during the year in which they are incurred. The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. An item of property and equipment is derecognized upon disposal or when future economic benefits are expected from its use or disposal. Any gain or loss on disposal (calculated as the difference between the net disposal proceeds with the carrying amount of the asset) is recognized within “Other (expenses) income, net” in the statement of income when an asset is derecognized. An asset’s carrying amount is immediately written down to its recoverable amount when the asset’s carrying amount is greater than its estimated recoverable amount. See note 2.10. 2.9. Intangible assets Software licenses are recorded at historical cost. Software licenses are amortized on the straight-line basis over the estimated useful life of the software which is approximately five years. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by PagSeguro Group are recognized as intangible assets. Directly attributable costs relating to internal development of software are capitalized as part of the software product, which mainly includes costs incurred with employees and third-party contracted services. Other development expenditures that do not meet the capitalization criteria are expensed as incurred. Development costs previously recorded as an expense are not recognized as an asset in a subsequent period and are included in the income statement. Capitalized computer software development costs are amortized over their estimated useful lives which are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. In 2019 the useful life of software’s developed was changed from three years to five years from the date that technological feasibility is met. This change was based on the following assumptions: i) business strategy, ii) history of use of goods/technology, iii) guarantee of suppliers, iv) technical quality of assets and v) preventive maintenance. 2.10. Impairment of non-financial assets The PagSeguro Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the PagSeguro Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pos-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. The Group bases its impairment calculation on most recent budgets and forecast calculations. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is impaired when the recoverable amount of the CGU is less than it is carrying amount, an impairment loss is recognized. 2.11. Payables to third parties Payables to third parties refer to funds payable and amounts due to merchants that use PagSeguro Brazil platform. PagSeguro Group recognizes a liability for the transaction amount, net of the transaction cost that will be made available to the merchant on its PagSeguro account. The payables to third parties from installment transactions are estimated based on the fair value, in accordance with the terms of these transactions. 2.12. Deposits The PagSeguro Group has sell-buy back transactions (sales of financial assets with future repurchase agreement). Such repurchase agreements are recorded in term deposits accounts when refers to certificate deposits operations and interbank deposits accounts for financial letter issuance purposes. The difference between sale price and repurchase price is treated as interest and it is recognized during the term of the agreement by effective interest rate method. 2.13. Borrowings Borrowings are initially recognized at fair value less any directly attributable transaction costs. After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, except for the embedded derivative, which is measured at fair value through profit or loss. Gains and losses are recognized in the consolidated income statements when the liabilities are derecognized as well as through the effective interest method amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest method. The effective interest method amortization is included in interest expense in the consolidated income statements. 2.14. Provisions Provisions are recognized when PagSeguro Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When PagSeguro Group expects the value of a provision to be reimbursed, in whole or in part (for example, due to an insurance contract) the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. Expenses associated with any provisions are presented in the statement of income, net of any reimbursements. PagSeguro Group is a party to legal and administrative proceedings. Provisions are established for all contingencies related to lawsuits for which it is probable that an outflow of funds will be necessary to settle the contingency/obligation and a reasonable estimate can be made. The assessment of the likelihood of loss includes the evaluation of available evidence, the hierarchy of laws, available case law, recent court decisions and their importance in the legal system, as well as the opinion of outside legal counsel. The provisions are reviewed and adjusted to reflect changes in circumstances. 2.15. Revenue and income Revenue from contract with customers is recognized as control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services in the ordinary course of PagSeguro Group’s activities. Revenue is presented net of sales and excise taxes and returns. PagSeguro Group’s revenue from contract with customers substantially comprises: • Revenue from transaction activities and other services: Revenue from fees charged for intermediation of electronic payments, and other services such as prepaid cards, which are recognized at the time the purchase is approved by the financial institution. Revenues from fees charged for intermediation of electronic payments are recognized on a gross basis and related transaction costs are recognized as Cost of sales and services, since PagSeguro Group is the principal in the intermediation transaction. PagSeguro Group has primary responsibility for providing the services to customers and directly sets the prices for such services, independently from the related transaction costs agreed between PagSeguro Group and the card schemes or card issuers. • Revenue from sales (recognized until August 30, 2019): Revenue from sales of POS devices and similar items, which is recognized when control of a good is transferred to the customers, i.e., on delivery of the equipment. Under Brazilian consumer law, clients have seven days after ordering Point of Sale equipment (“POS devices”) to cancel the purchase. Returns of devices are accounted for as deductions from revenue from sales at the time the equipment is returned. Revenue is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment at the customer’s location. • Revenue from membership fee: Beginning on September 1st, 2019, the Company charges a non-refundable membership fee at the inception of the contract with customers that provides access to the PagSeguro Group ecosystem. Revenue related to the non-refundable membership fee has been deferred according to the PagSeguro clients’ internal metrics and recognized in deferred revenues. • Income is mostly comprised of financial income recognized because of the discount rate charged on the early payments of payables to third parties (merchants). The income is recognized at the time the merchant agrees to receive a sale in installments on an early payment basis, and it is recorded as financial income in the statement of income. 2.16. Current and deferred income tax and social contribution Current income tax and social contribution Tax assets and liabilities for the current year are calculated based on the expected recoverable amount or the amount payable to the tax authorities. The tax rates and tax laws used to calculate the amount are those enacted or substantively enacted at the balance sheet date in the countries where PagSeguro Group operates and generates taxable income. Current income tax and social contribution related to items recognized directly in equity are recognized in equity. PagSeguro Group periodically evaluates the tax positions involving interpretation of tax regulations and establishes provisions when appropriate. Deferred taxes Deferred taxes arise from temporary differences between the tax bases of assets and liabilities and their carrying amounts at the balance sheet date. Deferred tax liabilities are recognized for all temporary taxable differences, except in the following situations: • When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit; and • On temporary tax differences related to investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized on all deductible temporary differences and tax loss carryforwards, to the extent that it is probable that taxable profit will be available against which they can be offset, except: • When the deferred tax asset related to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss; and • On the deductible temporary differences associated with investments in subsidiaries. Deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and that taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and a deferred tax asset is recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are re-assessed, at each reporting date and are recognized to the extent that it has become probable that future taxable profits will be available to allow their utilization. Based on the local law of the Cayman Islands (specifically, the Companies Law of 1960), there is no taxation on the income earned by companies organized in this jurisdiction. Therefore, PagSeguro Digital has no income tax impacts in the Cayman Islands. For the subsidiaries of PagSeguro Digital, deferred tax assets and liabilities ar |
Accounting estimates and judgme
Accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2021 | |
Accounting estimates and judgments [Abstract] | |
Accounting estimates and judgments | 3. Accounting estimates and judgments Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Based on assumptions, PagSeguro Group makes estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The main estimates and assumptions are addressed below: 3.1. Estimated useful life of intangible assets PagSeguro Group uses an estimated useful life to calculate and record the amortization applied to its intangible assets which may differ from the actual term over which the intangible assets are expected to generate benefits for PagSeguro Group. The amortization of software usage rights is defined based on the effective period of the license contracted. The amortization of internally developed software is defined based on the period over which the software will generate future economic benefits for PagSeguro Group (note 2.9). 3.2. Deferred income tax and social contribution PagSeguro Group recognizes deferred income tax and social contribution based on future taxable profit estimates for the next ten years. These projections are periodically reviewed and approved by management. 3.3. Provision for contingencies PagSeguro Group recognizes provisions for civil, tax and labor lawsuits. The assessment of probability of loss includes assessing the available evidence and jurisprudence, the hierarchy of laws and most recent court decisions. Provisions are reviewed and adjusted to consider changes in circumstances such as the applicable limitation period, findings of tax inspections and additional exposures identified based on new issues or court decisions. 3.4. Measurement of loss allowance for expected credit losses For accounts receivable from cards issuers, PagSeguro Group uses a provision matrix to calculate ECLs. The provision rates are based on the internal credit rating that consider external information, such as ratings given by major rating agencies and forward-looking factors specific to the debtors and the economic environment. For loans and credit cards receivable with the clients, the provision rates are based on days past due and internal credit rating (i.e. the capacity and historical payments linked to the Client). The provision is initially based on the Group's historical observed default rates. PagSeguro periodically reassesses the premises to adjust the historical credit loss experience with prospective information every year. Therefore, if any external factor, as a representative fall-off in forecast economic indicators and unstable economic scenario indicates an increase in number of defaults, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the future estimates are analyzed and adjusted. 3.5. Business combinations Businesses combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company to, and liabilities assumed by the Company from the former owners of the acquiree, the amount of any non-controlling interest in the acquiree, and the equity interests issued by the Company in exchange for control of the acquiree. For each acquisition, management's judgment must be exercised to determine the fair value of the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree, applying estimates or judgments in techniques used, especially in forecasting CGU's cash flows, in the computation of weighted average cost of capital ("WACC") and estimation of inflation during the identification of intangible assets with indefinite live, mainly, goodwill and developed software's, as described in Note 11. |
Consolidation of subsidiaries
Consolidation of subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Consolidation of subsidiaries [Abstract] | |
Consolidation of subsidiaries | On December 31, 2021 Company Assets Liabilities Equity Net income (loss) Ownership - % Level PagSeguro Brazil 23,863,783 15,250,100 8,613,683 1,136,230 99.99 Direct BS Holding 545,693 7,019 538,674 84,032 99.99 Direct Pagseg 648,175 5,870 642,305 (51,550) 99.99 Direct PSHC 36 — 36 — 99.99 Direct Pagbank 180,053 9,385 170,668 (3,621) 99.99 Indirect Net+Phone 375,347 103,424 271,923 (35,806) 99.99 Indirect Boa Compra 456,934 243,905 213,029 14,271 99.99 Indirect BCPS 2,022 (52) 2,074 258 99.99 Indirect Biva SEC 1,446,640 1,439,545 7,095 6,728 99.99 Indirect Biva Serviços 42,901 5,653 37,248 5,965 99.99 Indirect Biva Corban 21,200 5,446 15,754 12,912 99.99 Indirect FIDC 4,770,455 816,980 3,953,475 2,294,655 100.00 Indirect TILIX 13,972 1,573 12,399 5,017 99.99 Indirect BancoSeguro 10,320,430 9,807,767 512,663 73,489 100.00 Indirect Yamí 2,087 861 1,226 267 99.99 Indirect Registra Seguro 5,000 9 4,991 (9) 99.99 Indirect CDS 10,057 5,583 4,474 (3,157) 99.99 Indirect Zygo 2,013 4,278 (2,265) (9,597) 99.99 Indirect Moip 787,659 596,429 191,230 10,070 100.00 Indirect Concil 2,390 3,080 (690) (2,832) 100.00 Indirect Pagseguro Chile 7 — 7 — 100.00 Indirect Pagseguro Colombia 28 — 28 — 100.00 Indirect PSGP México 1 — 1 — 100.00 Indirect Pagseguro Peru 13 — 13 — 100.00 Indirect On December 31, 2020 Company Assets Liabilities Equity Net income (loss) Ownership - % Level Pagseguro Brazil 20,089,735 11,716,120 8,373,615 1,238,345 99.99 Direct BS Holding 488,173 — 488,173 54,658 99.99 Direct Pagseg Participações 2 — 2 — 99.99 Direct Pagbank Participações 15,001 15,000 1 — 99.99 Indirect Net+Phone 340,829 33,100 307,729 (82,694) 99.99 Indirect Boa Compra 431,624 268,731 162,893 29,751 99.99 Indirect BCPS 2,410 476 1,934 (205) 99.50 Indirect R2TECH 12,511 1,639 10,872 8,864 99.99 Indirect BSEC 488,988 488,616 372 431 99.99 Indirect BIVACO 18,532 660 17,872 (193) 99.99 Indirect FIDC 3,422,207 327,070 3,095,137 1,903,304 100.00 Indirect TILIX 8,361 979 7,382 (6,240) 99.99 Indirect BancoSeguro 5,364,406 4,891,653 472,753 56,120 100.00 Indirect Yamí 1,453 489 964 834 99.99 Indirect Registra Seguro 5,000 — 5,000 (50) 99.99 Indirect CDS 4,724 1,073 3,651 (1,430) 99.99 Indirect Zygo 2,310 2,078 232 (1,652) 99.99 Indirect Moip 741,689 560,536 181,153 9,207 100.00 Indirect Subsidiaries are engaged in providing financial technology solutions and services and the corresponding related activities. PagSeguro Brazil has investments in the following companies: • Biva Sec: The company’s main objective is to acquire and securitize credit solutions of PagSeguro Group, such as, loans and credit card operation. • FIDC: FIDC is a Brazilian investment fund that was formed on October 4, 2017 to finance the growth of PagSeguro Brazil's early payment of receivables feature by acquiring payables to third parties held by PagSeguro Brazil, as assignor. PagSeguro Brazil consolidates the financial statements of FIDC, since the risks of default and the responsibility for the payment of expenses and administration fees related to the FIDC are linked to subordinated quotas held by the PagSeguro Brazil. On March 29, 2018, third party investors contributed capital in the amount of R$20 million in FIDC, acquiring only senior and mezzanine quotas of the FIDC. On November 3, 2020 and November 1, 2021, the third party investors redeemed all of their capital related to the senior quotas and mezzanine quotas. On December 27, 2021 PagSeguro Brazil transferred 15% of their subordinated quotas to PagSeguro Digital. Therefore, as of December 31, 2021, FIDC was composed only of subordinated quotas, which are 100% owned by the PagSeguro Group. • RegistraSeguro: On October 2, 2019, PagSeguro Brazil constituted the Company by investing R$5,000 in share capital. The company provides financial services and software developments related to financial market. • MOIP: On October 31, 2020, PagSeguro Brazil acquired 100% of the share capital of MOIP. The company provides an online payment platform and end-to-end payment processing for e-commerce and marketplaces (Note 11). • Concil: On August 12, 2021, PagSeguro Brazil acquired 100% of the share capital of Concil. The company's corporate purpose is to provide professional data processing services, application service providers, internet hosting services, technical support, maintenance and other services in information technology, licensing, and assignment of the right to use computing (Note 11). • PagSeg: On July 15, 2020, PagSeguro Group constituted the company, a holding company incorporated under PagSeguro Digital, whose main objective is to acquire participations in other companies, commercial or civil, as partner, shareholder or quota holder, as well as the management of these holdings. PagSeg subsidiaries are: • Net+Phone: The Company was mainly engaged in acquisition and selling POS devices and similar items and has focus on exploring and providing services of telecommunications in general, as well as the practice of any activities necessary or useful for the execution of these services; • Boa Compra: Allows its clients to operate in cross-border transactions where the merchant and consumer are located in different countries across Latin America, Spain, Portugal and Turkey. • BCPS: BCPS’s main activity is to serve as Boa Compra’s hub in Portugal and to handle part of its account management. • CDS: On August 31, 2020, PagSeguro Brazil acquired 100% of the issued shares of CDS. Management expects that this acquisition will allow PagSeguro to expand product and services offering (note 11). • R2TECH Informatica Ltda. (“R2TECH”): R2TECH's main activity was in the information technology industry, focused on the processing of back-office solutions, including sales reconciliation, gateway solutions and services and the capture of credit cards with acquirers and sub acquirers. On December 1, 2021, Boa Compra incorporated R2TECH. • Biva Serviços: whose main objective is the intermediation among investors, financial institutions and credit borrowers via an electronic platform; • Biva Corban: whose main objective is to structure peer-to-peer financing for small and medium enterprises following the crowdfunding model. • BIVACO Holdings Ltda ("BIVACO”): BIVACO previous main objective was the intermediation among investors, financial institutions and credit borrowers via an electronic platform. On December 1, 2021, Biva Serviços reversely incorporated BIVACO. • PagBank: On October 22, 2020, PagSeguro Group constituted the company, a holding company incorporated under PagSeg, whose main objective is to acquire participations in other companies, commercial or civil, as partner, shareholder or quota holder, as well as the management of these holdings. Pagbank subsidiaries are: • TILIX: On December 5, 2018, PagSeguro Brazil acquired 100% of the share capital and obtained the control of TILIX. The company provides software development for managing payment solutions for B2C and B2B. • YAMÍ: On August 9, 2019, PagSeguro Brazil acquired 100% of the share capital and obtained the control of YAMÍ. The Company provides a back-office platform for e-commerce and marketplace. • Zygo: On July 23, 2020, PagSeguro Brazil acquired 100% of the issued shares of Zygo. Management expects that this acquisition will allow PagSeguro to expand product and services offering (note 11). ZYGO is a multisided customer engagement and loyalty platform that enables micro, small and medium sized merchants to acquire, engage and grow their customer base by offering customized marketing and loyalty programs and providing consumer insights and analytics. • BS Holding: is a holding company whose main objective is to acquire participations in other companies, mainly related to banking and financial services, as partner, shareholder or quota holder, as well as the management of these holdings. On January 4, 2019, BS Holding acquired 100% of BBN Banco Brasileiro de Negócios S.A. (renamed BancoSeguro S.A. in February 2019). • BancoSeguro holds a license to provide financial services and its main products are the deposits of PagSeguro Group customers and the service offering of banking solutions for other companies in the Group. PSHC: On March 18, 2021, PagSeguro Group constituted this holding company incorporated under PagSeguro Digital and additionally, in third quarter of 2021, PagSeguro Group established four new subsidiaries under PSHC. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment reporting [Abstract] | |
Segment reporting | Operating segments are determined based on the information reported and reviewed by the Board of Directors, which is responsible for allocating resources and assessing the performance of the business and to make PagSeguro Group’s strategic decisions. Considering that all decisions are based on consolidated reports, and that all decisions related to strategic and financial planning, purchases, investments and the allocation of funds are made on a consolidated basis, the PagSeguro Group and its subsidiaries operate in a single segment, as financial service agents. The PagSeguro Group is domiciled in Brazil and has revenue arising from local customers and customers located abroad. The main revenue is related to sales from the domestic market. The international market represents 2.5%, 2.8% and 1.1% for the years 2021, 2020 and 2019, respectively. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents December 31, 2021 December 31, 2020 Short-term bank deposits 569,816 415,387 Short-term investment 1,224,546 1,224,678 1,794,362 1,640,065 |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2021 | |
Financial investments [Abstract] | |
Financial investments | 7. Financial investments Consists of investments in Brazilian Treasury Bonds (“LFTs”), in the amount of R$782,647 in December 31, 2021 (R$979,837 in December 31, 2020) with an average return of 100% of the Basic Interest Rate (SELIC, 9.25% per year on December 31, 2021 and 2.0% per year on December 31, 2020), invested to comply with certain requirements for authorized payment institutions as set forth by the Brazilian Central Bank regulation. This financial asset was classified at fair value through other comprehensive income. Unrealized gain on LFTs in the year ended December 31, 2021 totaled R$271 (loss of R$278 in year ended December 31, 2020). |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable [Abstract] | |
Accounts receivable | December 31, 2021 December 31, 2020 Visa Master Hipercard Elo Amex Total Visa Master Hipercard Elo Total Legal obligors Itaú 1,333,263 2,045,133 757,306 — — 4,135,702 774,445 2,100,129 627,463 — 3,502,037 Bradesco 1,630,756 160,690 — 842,352 296,696 2,930,494 448,592 2,043,676 — — 2,492,268 Santander 818,937 1,464,314 — — 3,253 2,286,504 988,772 251,808 — 250,849 1,491,429 Nubank — 2,045,699 — — — 2,045,699 107,927 543,513 — — 651,440 Banco do Brasil 1,384,872 77,639 — 467,305 — 1,929,816 1,759,911 294,631 — 409,384 2,463,926 Banco Carrefour 121,398 744,030 — — — 865,428 407,688 87,882 — — 495,570 Banco Cooperativo Sicoob 216,047 633,590 — — — 849,637 — — — — — Porto Seguro 550,352 141,924 — — — 692,276 158,879 238,196 — 223,354 620,429 CEF 206,969 136,125 — 257,929 — 601,023 — 1,421,074 — — 1,421,074 Banco C6 — 481,017 — — — 481,017 — — — — — Banco Bradescard 362,978 91,016 — 9,368 — 463,362 — — — 2,874 2,874 Banco Inter — 407,601 — — — 407,601 — 684 — — 684 Other (iv) 1,890,701 2,088,484 — 215,378 770 4,195,333 702,021 1,212,651 — 95,200 2,009,872 Total card issuers (i) 8,516,273 10,517,262 757,306 1,792,332 300,719 21,883,892 5,348,235 8,194,244 627,463 981,661 15,151,603 Cielo – Elo — — — — — 42,662 — — — — 209,318 Getnet — — — — — 97,248 — — — — 56,799 Other — — — — — 11,716 — — — — 29,030 Total acquirers (ii) — — — — — 151,626 — — — — 295,147 Working capital loans — — — — — 1,069,671 — — — — 330,848 Working capital loans ECL — — — — — (256,927) — — — — (99,330) Credit card receivables — — — — — 726,095 — — — — 257,338 Credit card receivables ECL — — — — — (174,046) — — — — (55,728) Other credit initiatives — — — — — 110,050 — — — — 23,360 Other credit initiatives ECL — — — — — (6,166) — — — — — Total credit receivables (iii) — — — — — 1,468,677 — — — — 456,488 Current 1,239,797 422,918 Non – Current 228,880 33,570 Other accounts receivable — — — — — 156,700 — — — — 177,771 Other accounts receivable ECL (3,493) (4,470) Total accounts receivable 8,516,273 10,517,262 757,306 1,792,332 300,719 23,657,402 5,348,235 8,194,245 627,463 981,661 16,076,540 (i) Card issuers: receivables derived from transactions where PagSeguro Brazil acts as the financial intermediary in operations with the issuing banks, related to the intermediation agreements between PagSeguro Brazil and Visa, Mastercard, Hipercard, Amex or Elo. However, PagSeguro Brazil's contractual accounts receivable are with the financial institutions, which are the legal obligors on the accounts receivable payment. Additionally, amounts due within 27 days of the original transaction, including those that fall due with the first installment of installment receivables, are guaranteed by Visa, Mastercard, Hipercard, Amex or Elo, as applicable, if the legal obligors do not make the payment. (ii) Acquirers: refers to card processing transactions to be received from the acquirers, which are a third parties acting as financial intermediaries between the issuing bank and PagSeguro Brazil. (iii) The ECL (“expected credit losses”), are measured according to the IFRS 9. The provision rates are based on the internal credit rating that considers external information and are based on days past due. Every report date, PagSeguro reassesses the premises to adjust the historical credit loss experience with prospective information. (iv) Refers to other dispersed receivables from legal obligors. The maturity analysis of accounts receivable is as follows: December 31, 2021 December 31, 2020 Past due after 91 days 155,495 72,152 Past due within 31 to 90 days 32,703 15,156 Past due within 30 days 25,445 10,337 Due within 30 days 4,214,521 7,013,196 Due within 31 to 120 days 12,033,372 6,129,039 Due within 121 to 180 days 3,457,830 1,509,449 Due within 181 to 360 days 3,808,539 1,453,167 Due after 360 days 370,128 33,570 Expected credit losses (440,631) (159,527) 23,657,402 16,076,540 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Recoverable [Abstract] | |
Taxes Recoverable | 9. Taxes Recoverable December 31, 2021 December 31, 2020 Income tax and Social contribution (i) 294,955 223,057 Social integration program (ii) 167,701 151,165 Value-added tax on sales and services (iii) — 14,646 Other 6,834 107 469,490 388,975 (i) The increase is mainly related to withholding taxes from FIDC quotas redeemed in December 2021, amounted to R$409,084, representing withholding taxes of R$59,876 (ii) Refers to Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) recoverable on transaction activities and other services and purchase of POS devices. (iii) Refers to the Value-added Tax on Sales and Services (ICMS) due to purchases of POS devices, the decrease is related to tax impairment realized in December 2021, in the amount of R$24,476. |
Related-party balances and tran
Related-party balances and transactions | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Related-party balances and transactions | 10. Related-party balances and transactions i) Balances and transactions with related parties December 31, 2021 December 31, 2020 Payables Payables Immediate parent UOL – sales of services (a) 16,216 15,720 UOL – shared service costs (b) 19,093 12,539 UOL – deposits (c) 248,271 11,391 Affiliated companies UOL Edtech Tecnologia - Deposits (c) 229,250 — Compasso Informática S.A.(d) 12,853 — UOL Diveo – sales of services (d) 7,612 10,218 Transfolha Transportadora e Distribuição Ltda. — 1,933 Others 10,326 6,535 543,621 58,336 . (a) Sales of services refers mainly to the purchase of advertising services from UOL. (b) Shared services costs mainly related to payroll costs that are incurred by the parent company UOL and are charged to PagSeguro Group. (c) Certificate of deposits (CD) acquired by UOL and UOL Edtech from BancoSeguro with interest rate between 110% to 120% per year of CDI. The maturity analysis is as follows: December 31, 2021 December 31, 2020 Due within 61 to 180 days 193,592 11,391 Due within 181 to 360 days 283,929 — 477,521 11,391 (d) This payable refers mainly to colocation and cloud services. In 2020, these services were provided by UOL Diveo and since February 2021 these services are being provided by Compasso Informática S.A. ii) Revenue and expense from transactions with related parties For the year ended December 31, 2021 2020 2019 Revenue Expense Revenue Expense Revenue Expense Immediate parent UOL - shared service costs (a) — 141,915 — 134,277 — 161,650 UOL - sales of services (b) 3,221 92,664 2,878 80,820 2,520 57,480 UOL - deposits (c) — 3,797 — 2,970 — — Affiliated companies UOL Diveo - sales of services (d) — 2,887 — 49,665 — 36,790 Compasso Informática S.A.(d) — 102,912 — — — — Transfolha Transportadora e Distribuição Ltda. — 12,447 — 23,571 — 17,209 UOL Edtech Tecnologia (c) — 9,695 — — — — Others 1,013 4,082 603 2,926 35 1,035 4,234 370,399 3,481 294,229 2,555 274,164 (a) Shared services costs mainly related to payroll costs sharing that are incurred by the parent company UOL and are charged to PagSeguro. Such costs are included in administrative expenses. (b) Sale of services expenses is related to advertising services from UOL and revenue is related to intermediation fees. (c) Expenses are related to UOL and UOL Edtech purchase of BancoSeguro's Certificate of Deposits (CD). (d) Expenses related to colocation and cloud services. In 2020, these services were provided by UOL Diveo and since February, 2021 the same services are being provided by the affiliated company Compasso. The increase in 2021 relates to higher volume of cloud services due to the increase in active merchants and PagBank users. iii) Key management compensation Key management compensation includes short and long-term benefits of PagSeguro Brazil’s executive officers. The short and long-term compensation related to the executive officers for the year ended December 31, 2021 amounted to R$41,198 (December 31, 2020 - R$104,568 and R$126,749 in 2019, respectively). |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about business combination [abstract] | |
Business combinations | On July 23, 2020, PagSeguro Brazil acquired 100% of the share capital and obtained control of Zygo. Total consideration amounted to R$8,000 and the total net assets acquired at fair value amounted to R$1,883, resulting in the preliminary recognition of goodwill of R$6,117. In July 2021, the Company concluded the purchase price allocation and as a result in the goodwill of R$5,769, with the allocation of R$348 as non-compete agreement and software. The consideration paid in cash amounted to R$5,053 and the remaining portion of purchase price will be retained for eventual debt and paid between 3 to 5 years after acquisition. On August 31, 2020, PagSeguro Brazil acquired 100% of the share capital and obtained control of CDS. Total consideration paid in cash amounted to R$2,379 and the total net assets acquired at fair value amounted to R$2,379, resulting in no goodwill. On October 31, 2020, PagSeguro Brazil acquired 100% of the share capital and obtained control of MOIP. Purchase price amounted to R$358,609 and the total net assets acquired at fair value amounted to R$151,986. The initial consideration paid in cash amounted to R$307,855 and on March 8, 2021, additional amount of R$32,573 was paid. The remaining portion in amount of R$18,181 was recognized in other liabilities in non-current liabilities and will be retained for 5 years after acquisition. The purchase price allocation ("PPA") was completed on December 31, 2020, which included the recognition of a customer portfolio with a fair value of R$58,506, resulting in the recognition of goodwill of R$148,117, which is attributable mainly to operational synergy and cost reductions. The PPA was elaborated considering projections for the period of 5 years based on management’s budgets for MOIP and applying a long-term growth rate based on the estimated gross domestic product ("GDP") plus the estimated growth of GDP of services (fluctuating from 5.7% to 6.3% per year) in order to project future cash flows, discount rate based on WACC (fluctuating from 11.7% to 13.3% per year). On August 12, 2021, PagSeguro Brazil acquired 100% of the share capital and obtained control of Concil. Total consideration amounted to R$43,896 and the total net assets acquired at fair value amounted to R$23,165. The consideration paid in cash amounted to R$35,000 and the remaining portion in amount of R$8,896 was recognized in other liabilities and will be retained for the achievement of metrics. Concil main activity is in the information technology industry, focused on the processing of back-office solutions, including reconciliation services for the capture of credit cards with acquirers and sub acquirers. The preliminary purchase price allocation ("PPA") was completed on September 30, 2021, which included the recognition of a customer portfolio with a fair value of R$3,839, non-compete agreement of R$940 and software of R$33,136. The Company has also recognized a contingency liability and indemnification assets of R$7,848 resulting in the recognition of goodwill of R$20,731, which is attributable mainly to operational synergy and cost reductions. The PPA was elaborated considering projections for the period of five years based on management's budgets for Concil and applying an inflation rate plus the estimated growth of GDP of services (fluctuating from 2.0% to 4.5% per year) in order to project future cash flows, discount rate based on WACC (fluctuating from 17.5% to 19.5% per year). These acquisitions are in accordance with PagSeguro Group’s business strategies, ramping up investments on new technologies, products and services for the Group’s digital ecosystem. The fair value of assets and liabilities acquired in 2021 (Concil) and 2020 (CDS, Zygo and Moip) were as follows: December 31, 2021 December 31, 2020 Fair value of assets and liabilities acquired Cash and cash equivalents 529 38,385 Accounts receivable acquired 540 537,570 Financial investments acquired — 177,772 Other Assets acquired 1,092 30,988 Payables to third parties assumed — (566,244) Liabilities assumed (4,020) (42,263) Customer portfolio, expenditures with software and others 45,763 58,506 Deferred taxes (12,891) (19,960) Contingency liability (7,848) — Value of net assets 23,165 214,754 Goodwill 20,731 154,234 Purchase cost 43,896 368,988 Consideration for the purchase settled in cash 35,000 315,287 Cash and cash equivalents at the subsidiary acquired (529) (38,385) Amount paid on acquisitions less cash and cash equivalents acquired 34,471 276,902 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Property and equipment | 12. Property and equipment a) Property and equipment are composed as follows: December 31, 2021 Cost Accumulated depreciation Net Data processing equipment 106,643 (51,294) 55,349 Machinery and equipment (i) 2,798,823 (654,360) 2,144,463 Buildings Leasing 94,048 (26,928) 67,120 Other 29,909 (7,789) 22,120 Total 3,029,423 (740,371) 2,289,052 December 31, 2020 Cost Accumulated depreciation Net Data processing equipment 77,413 (35,572) 41,841 Machinery and equipment (i) 1,881,556 (204,154) 1,677,402 Buildings Leasing 79,890 (12,621) 67,269 Other 22,114 (6,013) 16,101 Total 2,060,973 (258,360) 1,802,613 b) The changes in cost and accumulated depreciation were as follows: Data processing equipment Machinery and equipment (i) Buildings Leasing (ii) Other Total Ont December 31, 2019 Cost 65,116 371,741 — 12,506 449,363 Accumulated depreciation (18,578) (28,512) — (2,283) (49,373) Net book value 46,538 343,229 — 10,223 399,990 On December 31, 2020 Opening balance 46,538 343,229 — 10,223 399,990 Cost 12,297 1,509,814 79,890 9,609 1,611,610 Purchases 10,820 1,519,278 79,717 3,789 1,613,604 Disposals (1,509) (9,838) (684) (74) (12,105) Acquisition of subsidiary 2,986 375 857 5,894 10,111 Depreciation (16,994) (175,641) (12,623) (3,729) (208,987) Depreciation (15,596) (175,805) (12,227) (1,000) (204,628) Disposals 21 264 — 17 302 Acquisition of subsidiary (1,419) (100) (396) (2,746) (4,661) Net book value 41,841 1,677,402 67,269 16,101 1,802,613 On December 31, 2020 Cost 77,413 1,881,556 79,890 22,114 2,060,973 Accumulated depreciation (35,572) (204,154) (12,621) (6,013) (258,360) Net book value 41,841 1,677,402 67,269 16,101 1,802,613 On December 31, 2021 Opening balance Cost 29,230 917,267 14,156 7,796 968,449 Purchases (ii) 29,940 931,859 15,013 10,478 987,290 Disposals (1,226) (14,601) (857) (2,902) (19,586) Acquisition of subsidiary 516 9 — 220 745 Depreciation (15,722) (450,206) (14,305) (1,777) (482,010) Depreciation (16,407) (453,593) (14,804) (3,137) (487,941) Disposals 1,063 3,389 499 1,445 6,396 Acquisition of subsidiary (378) (2) — (85) (465) Net book value 55,349 2,144,463 67,120 22,120 2,289,052 On December 31, 2021 Cost 106,643 2,798,823 94,048 29,909 3,029,423 Accumulated depreciation (51,294) (654,360) (26,928) (7,789) (740,371) Net book value 55,349 2,144,463 67,120 22,120 2,289,052 (i) Net book value of machinery and equipment are R$2,091,671 of POS devices. (R$1,635,782, as of December 31, 2020), which are depreciated over 5 years. The depreciation of POS in the year ended December 31, 2021, amounted to R$448,385 (R$172,519 in the year ended December 31, 2020). On December 31, 2021, PagSeguro have contractual obligations to acquire POS Devices in the amount of R$1,650,885 (R$1,386,324 on December 31, 2020). (ii) In January 2020, PagSeguro entered into a lease agreement until July 2026 and recorded in their financial statements, the office (right-of-use) in the amount of R$88,880, which was calculated considering the discount rate of 4.30% per year. For this leasing agreement, in 2021, PagSeguro agreed the annual lease adjustment of R$9,986. Additionally in May 2021, PagSeguro entered into another lease agreement until January 2024 and recorded in their financial statements, the office (right-of-use) in the amount of R$5,030, which was calculated considering the discount rate of 3.35% per year. Consequently, as of December 31, 2021, PagSeguro had a lease liability presented in other current liabilities in the amount of R$15,690 and as non-current liability in the amount of R$51,521. In 2021, the Company incurred in financial expenses related to these leases of R$21 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets [Abstract] | |
Intangible assets | a) Intangible assets are composed as follows: December 31, 2021 Cost Accumulated Net Expenditures related to software and technology (i) 2,016,541 (772,804) 1,243,737 Software licenses 196,854 (53,129) 143,725 Goodwill (ii) 209,908 — 209,908 Other 67,768 (14,962) 52,806 2,491,071 (840,895) 1,650,176 December 31, 2020 Cost Accumulated Net Expenditures related to software and technology (i) 1,319,061 (501,319) 817,742 Software licenses 103,256 (29,060) 74,196 Goodwill (ii) 169,667 — 169,667 Other 62,786 (771) 62,015 1,654,770 (531,150) 1,123,620 (i) The PagSeguro Group capitalizes expenses incurred with the development of platforms, which are amortized over their useful lives of approximately five years. (ii) The balances comprise the goodwill arising from the acquisition of the companies R2TECH, BIVA, BancoSeguro, Yamí, Zygo, Moip and Concil. The goodwill is allocated to the Cash Generating Units (CGUs) in each of the acquired companies that generated the goodwill and is demonstrated below: December 31, 2021 December 31, 2020 Moip 148,117 148,117 Concil 20,731 — Biva Serviços 14,627 — Bivaco Holding — 14,627 Banco Seguro 12,612 12,612 Boa Compra 6,570 — Zygo 5,768 5,768 R2Tech — 6,570 Yami 1,382 1,382 Total 209,806 189,075 The recoverable amount of a CGU is determined based on value-in-use calculations. The goodwill was mainly represented by the MOIP acquisition in the amount of R$148,117. The recoverability of this goodwill was tested using five-year budgets, a long-term growth rate based on estimated gross domestic product (3.34% in 2021, 2.51% in 2022, 2.44% in 2023 and 2.49% in 2024), inflation rates (3.01% in 2021, 3.39% in 2022, 3.33% in 2023 and 3.27% in 2024) metrics to project future cash flows and discount rate based on WACC (being stable to 13% per year). For the amount of goodwill represented by the acquisition of Concil, management has reviewed the assumptions applied in the preliminary purchase price allocation prepared at the date of the transaction and no significant variances were observed from that date to December 31, 2021. For the goodwill originated by other acquisitions, the Company tested the recoverability using budgets for the period of five years for each of these companies and a long-term growth rate based on the estimative of gross domestic product (1.60% in 2022, 2.28% in 2023, 2.41% in 2024 and 2.45% in 2022) and inflation rates (4.17% in 2022, 3.34% in 2023, 3.17% in 2024 and 3.14% in 2025) applying these metrics to project future cash flows and using discount rate based on WACC (fluctuating from 8% to 13% per year) calculated by each one of Companies with goodwill. Based on these assessments, management concluded that the book balances recorded on December 31, 2021 of the respective assets are recoverable, since the estimated value for UGC was higher than its book value and, therefore, no provision for impairment of intangible assets was accounted for. b) The changes in cost and accumulated amortization were as follows: Expenditures with software and technology Software licenses Goodwill Other Total On December 31, 2019 Cost 787,970 58,247 54,858 4,586 905,661 Accumulated amortization (302,031) (13,492) — (585) (316,108) Net book value 485,939 44,755 54,858 4,001 589,553 On December 31, 2020 485,939 44,755 54,858 4,001 589,553 Opening balance Cost 531,092 45,010 114,809 58,199 749,110 Additions (i) 485,608 42,138 134,274 58,633 720,653 Disposals (ii) (6,308) — (19,465) (447) (26,220) Acquisition of subsidiary (iii) 51,791 2,871 — 13 54,675 Amortization (199,289) (15,569) — (185) (215,043) Amortization (164,319) (15,153) — (180) (179,652) Disposals 2,667 — — — 2,667 Acquisition of subsidiary (iii) (37,636) (416) — (5) (38,056) Net book value 817,742 74,196 169,667 62,015 1,123,620 On December 31, 2020 Cost 1,319,061 103,256 169,667 62,786 1,654,770 Accumulated amortization (501,319) (29,060) — (771) (531,150) Net book value 817,742 74,196 169,667 62,015 1,123,620 On December 31, 2021 Cost 697,480 93,597 40,241 4,983 836,301 Additions (iv) 715,382 97,103 40,589 4,983 858,057 Disposals (18,167) (3,645) (348) — (22,160) Acquisition of subsidiary (iii) 265 139 — — 404 Amortization (271,485) (24,068) — (14,192) (309,745) Amortization (278,220) (24,290) — (14,192) (316,702) Disposals 6,735 222 — — 6,957 Net book value 1,243,737 143,725 209,908 52,806 1,650,176 On December 31, 2021 Cost 2,016,541 196,854 209,908 67,768 2,491,071 Accumulated amortization (772,804) (53,129) — (14,962) (840,895) Net book value 1,243,737 143,725 209,908 52,806 1,650,176 (i) Refers to pulverized expenditures with software and technology, mainly related to customer experience, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions, mainly related to MOIP and other is related to purchase price allocation of MOIP (customer portfolio). (ii) Goodwill disposals refers to goodwill recorded in prior years related to business combinations acquisitions. (iii) Relates to intangible assets from Concil acquired in 2021 and MOIP, ZYGO and CDS, which were acquired in 2020. (iv) Refers to pulverized expenditures with software and technology, mainly related to customer experience functionalities, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions related to Concil. |
Payables to third parties
Payables to third parties | 12 Months Ended |
Dec. 31, 2021 | |
Payables to third parties [Abstract] | |
Paybles to third parties | Payables to third parties, in the amount of R$13,217,150 (R$10,101,510 as of December 31, 2020) correspond mainly to amounts to be paid to merchants related to transactions carried out by their card holders, net of the intermediation fees and discounts applied. PagSeguro Brazil’s average settlement terms agreed upon with commercial establishments is up to From the total amount of payable to third parties, R$533,436 (R$739,951, as of December 31, 2020) refer to the balance of transactions settled on merchant's payment account and available to be used by them and R$5,167,577 (R$3,566,818 as of December 31, 2020) are the balance of the clients maintained in their banking accounts that are invested by the Company in Certificate of Deposits with 30 days of maturity and interest average rate of 59% of CDI (45% of CDI in December 2020). |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Deposits | 15. Deposits December 31, 2021 2020 Certificate of Deposit(i) 2,510,818 604,916 Interbank deposits(ii) 404,998 — Corporate Securities(iii) 218,180 161,170 3,133,996 766,086 Current 3,056,444 571,996 Non-Current 77,552 194,090 (i) The average return is 163% of CDI (164% of CDI in December 2020). The increase is related to higher offer of CDBs products to the clients, considering this service began in 2020. (ii) The average return is 118% of CDI. (iii) The average return is 152% of CDI (158% of CDI in December 2020). The maturity analysis of deposits is as follows: December 31, 2021 December 31, 2020 Due within 30 days 646,232 5,231 Due within 31 to 120 days 1,029,936 77,812 Due within 121 to 180 days 313,008 53,000 Due within 181 to 360 days 1,067,268 435,952 Due to 361 days or more days 77,552 194,091 3,133,996 766,086 The changes in deposits were as follows: On December 31,2019 — Additions 892,754 Withdraws (130,459) Interest 3,791 On December 31,2020 766,086 Additions 4,929,953 Withdraws (2,667,612) Interest 105,596 On December 31,2021 3,133,996 |
Salaries and social charges
Salaries and social charges | 12 Months Ended |
Dec. 31, 2021 | |
Salaries and social charges [Abstract] | |
Salaries and social charges | December 31, 2021 December 31, 2020 Profit sharing 75,076 29,401 Social charges 39,200 24,776 Payroll accruals 75,151 53,264 Payroll taxes (LTIP) (i) 61,359 62,293 Other 8,938 5,464 259,724 175,198 (i) Refers to social charges and income tax over LTIP and LTIP goals balances |
Taxes and contributions
Taxes and contributions | 12 Months Ended |
Dec. 31, 2021 | |
Taxes and contributions [Abstract] | |
Taxes and contributions | 17. Taxes and contributions December 31, 2021 December 31, 2020 Taxes Services tax and other (i) 171,902 157,066 Value-added tax on sales and services (ii) 117 29,678 Social integration program (iii) 26,832 24,984 Social contribution on revenues (iii) 164,330 153,626 Income tax and social contribution (iv) 31,865 6,336 Other 12,479 8,841 407,525 380,531 December 31, 2021 December 31, 2020 Judicial deposits (v) Services tax (i) (159,101) (150,121) Value-added tax on sales and services (ii) — (29,114) Social integration program (iii) (25,789) (24,498) Social contribution on revenues (iii) (158,701) (150,756) (343,591) (354,489) 63,934 26,042 (i) Refers to tax on revenues. (ii) In March 2021, there was a decision taken by Brazilian Supreme Court related to Value-added Tax on Sales and Services (ICMS), that beneficiated the Company. For this reason, the Company reversed the provision in the amount of R$29,114. Consequently, as the Company does not have this amount recorded in liability to make the offset with judicial deposits, the deposit is now being presented in the non-current assets as Judicial Deposits, until the withdrawal of these amounts. (iii) Refers mainly to Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) charged on financial income. (iv) Refers to the income tax and social contribution payable. |
Provision for contingencies
Provision for contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
Provision for contingencies | PagSeguro Group is party to labor and civil litigation in progress and are discussing such matters at the administrative and judicial levels, which in some cases the PagSeguro Group has made corresponding judicial deposits. The likelihood of a negative outcome is assessed periodically and adjusted by management, when appropriate. Such assessment includes the opinion of its external legal advisors. December 31, 2021 December 31, 2020 Civil 33,343 23,238 Labor 18,387 13,598 51,730 36,836 Labor Deposits (10,167) (8,032) (10,167) (8,032) 41,563 28,804 Current 27,653 17,063 Non-Current 13,910 11,741 Below it’s demonstrated the movements of the provision for contingencies in the year ended December 31, 2021: On December 31,2019 11,849 Accrual 6,409 Acquisition of subsidiary 11,446 Settlement (1,127) Interest 227 On December 31,2020 28,804 Accrual 25,907 Settlement (17,760) Interest 4,610 On December 31,2021 41,563 The PagSeguro Group is party on tax and civil lawsuits involving risks classified by legal advisors as possible losses, for which no provision was recognized on December 31, 2021, totaling approximately R$504,691 (December 31, 2020 - R$165,862). The PagSeguro Group is not a party to labor lawsuits involving risks classified by management as possible losses. The main tax and labor lawsuit are disclosed below: On October 15, 2021, PagSeguro Internet was assessed by the Brazilian Internal Revenue Service (“IRS”) for not collecting tax on financial operation ("IOF") on intercompany loans. IOF is applicable over credit transactions of any nature, including intercompany loans. The amount of this assessment was R$239,812. The Company has presented its defense, clarifying that the transactions carried out among PagSeguro and its subsidiaries are not credit transactions. The Group has a centralized cash pool and, according to the law, this kind of intercompany transaction is not taxable by IOF. |
Statement of changes in the provision for contingencies | Below it’s demonstrated the movements of the provision for contingencies in the year ended December 31, 2021: On December 31,2019 11,849 Accrual 6,409 Acquisition of subsidiary 11,446 Settlement (1,127) Interest 227 On December 31,2020 28,804 Accrual 25,907 Settlement (17,760) Interest 4,610 On December 31,2021 41,563 |
Borrowing costs
Borrowing costs | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [abstract] | |
Disclosure of borrowings [text block] | In November 2021, the Group entered in a US$180 million borrowing agreement with maturity in one-year from the execution date and the payment will occur in a single installment as the due date. Interest on the borrowing is paid on the maturity of the operation, together with the total settlements of the financial instruments. On December 31, 2021, the borrowing amounted to R$1,005,787, of which R$1,297 related to interest. In the same operation, the Company contracted derivative financial instruments (“Swaps”) for the borrowing in foreign currency, with the specific objective of protecting said borrowing from fluctuations arising from exchange variation, with the final remuneration, considering all the costs of the operation, equivalent to 109.4% of the CDI. In 2021, the Company incurred in financial expenses in the amount of R$14,317. That capture was directed to working capital helping to financing the operation and it is not linked to borrowing limits or covenants. |
Income tax and social contribut
Income tax and social contribution | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and social contribution [Abstract] | |
Income tax and social contribution | Income tax and social contribution a) Reconciliation of the deferred income tax and social contribution Tax losses Tax credit Technological innovation (i) Other temporary differences assets(ii) Other temporary differences liability (iii) Total Deferred tax On December 31, 2019 50,134 5,618 (161,211) 153,632 (679,123) (630,950) Included in the statement of income 17,446 (721) (117,073) 29,462 (348,666) (419,552) Other 1,259 — 313 (276) (94) 1,202 On December 31, 2020 68,839 4,897 (277,971) 182,818 (1,027,883) (1,049,300) Included in the statement of income (2,524) (5,084) (157,885) 170,895 (207,344) (201,942) Other 4,468 8,617 (93) (32,748) (19,756) On December 31, 2021 70,783 (187) (427,239) 353,620 (1,267,975) (1,270,998) Deferred tax asset 120,762 Deferred tax liability (1,391,760) (i) Refers to the benefit granted by the Technological Innovation Law (Lei do Bem), which reduces the tax charges on the capitalized amount intangible assets. (ii) The main other assets temporary difference refers to expected credit losses (note 8) and taxes and contributions (note 17). (iii) The main other liability temporary difference refers to gain on the ownership of FIDC quotas, that will be realized only in the redemption of such quotas. Deferred tax assets are recognized for tax loss carry-forward to the extent that the realization of the related tax benefit through future taxable profits is probable. Tax losses do not have expiration date. b) Reconciliation of the income tax and social contribution expense: PagSeguro Group computed income tax and social contribution under the taxable income method. The following is a reconciliation of the difference between the actual income tax and social contribution expense and the expense computed by applying the Brazilian federal statutory rate for years ended December 31, 2021, 2020 and 2019: For the year ended December 31, 2021 December 31, 2020 December 30, 2019 Profit for the year before taxes 1,488,027 1,774,691 1,912,539 Statutory rate 34 % 34 % 34 % Expected income tax and social contribution (505,929) (603,395) (650,263) Income tax and social contribution effect on: Permanent additions (exclusions) Gifts 704 (7,175) (814) R&D and technological innovation benefit(i) 187,207 134,247 86,665 Different tax rates (20,839) (6,316) 3,575 Unrecorded deferred taxes 14,625 — — Other additions 2,488 248 15,323 Income tax and social contribution expense (321,744) (482,391) (545,514) Effective rate 22 % 27 % 29 % Income tax and social contribution – current (119,801) (62,840) (24,471) Income tax and social contribution – deferred (201,942) (419,551) (521,043) (i) Refers to the benefit granted by the Technological Innovation Law ( Lei do Bem ), which reduces the income tax charges, based on the amount invested by the PagSeguro Group on specific intangible assets, see Note 13. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
Equity | 21. Equity a) Share capital On December 31, 2021, share capital is represented by 329,608,226 common shares, per value of US$0.000025. Share capital is composed of the following shares for the year ended December 31, 2021: December 31, 2019 shares outstanding 328,855,412 Treasury shares (350,006) Long-Term Incentive Plan 1,058,509 Repurchase of common shares (547,543) December 31, 2020 shares outstanding 329,016,372 Treasury shares 1,520,065 Long-Term Incentive Plan 758,024 Repurchase of common shares (1,686,235) December 31, 2021 shares outstanding 329,608,226 b) Capital reserve The capital reserve can only be used to increase capital, offset losses, redeem, reimburse or purchase shares or pay cumulative dividends on preferred shares. For the year ended December 31, 2021, the Company recognize LTIP capital movement by issuing new shares of R$138,665 (R$3,834 in the year ended December 31, 2020). c) Share based long-term incentive plan (LTIP and LTIP goals) Under the terms of the LTIP, upon completion of the IPO, the vested portion of each beneficiary’s LTIP rights was converted into Class A common shares of PagSeguro Digital at the IPO price (US$21.50) which is the assessed fair value at the grant date. As a result, the beneficiaries of the LTIP received a total of 1,823,727 new Class A common shares upon completion of the IPO. The unvested portions of each beneficiary’s LTIP rights will be settled on each future annual vesting date in shares. This arrangement is classified as equity settled. For the year ended December 31, 2021, the Company recognized in equity, costs related to the LTIP and LTIP goals in the total amount of R$305,408 (R$75,218 in the year ended December 31, 2020). On December 31, 2021, the amount of R$61,359 (R$62,293 on December 31, 2020) was accounted for LTIP and LTIP Goals social charges, including withholding income tax (Note 16). The maximum number of common shares that can be delivered to beneficiaries under the LTIP may not exceed 3% of the Company’s issued share capital at any time. On December 31, 2021, total shares granted were 6,167,108, and the total shares issued were 5,907,695. d) OCI and Equity valuation adjustments The Company recognizes in this account the accumulated effect of the foreign exchange variation resulting from the conversion of the financial statements of the foreign subsidiary BCPS, which amounted to a loss of R$117 in the year ended on December 31, 2021 (gain of R$959 in the year ended December 31, 2020). This accumulated effect will be reverted to the result of the year as gain or loss only in case of disposal or write-off of the investment. The Financial investments mentioned in Note 7 were classified at fair value through other comprehensive income. Unrealized gain on LFTs in the year ended December 31, 2021, totaled R$271 (loss of R$278 in the year ended December 31, 2020). The Company also recognized in this account the difference between the book value and the amounts paid in the acquisitions of additional interests from the non-controlling shareholders of the subsidiary represented by the accumulated amount of R$22,372 (R$22,372 as of December 31, 2020). e) Treasury shares On October 30, 2018, PagSeguro Digital’s board of directors authorized a share repurchase program, under which the PagSeguro Group may repurchase up to US$250 million in outstanding Class A common shares traded on the New York Stock Exchange (NYSE). The Company’s management is responsible for defining the timing and the number of shares to be acquired, within authorized limits. Treasury shares are composed of the following shares for the year ended December 31, 2021, 2020: Shares Amount Average Price (US$) December 31, 2019 treasury shares 518,642 41,267 20.09 Repurchase of common shares 547,543 44,775 16.13 Long-Term Incentive Plan (897,549) (72,433) 18.06 December 31, 2020 treasury shares 168,636 13,609 18.06 Repurchase of common shares 1,686,235 284,812 30.23 Long-Term Incentive Plan (166,170) (13,410) 18.06 December 31, 2021 treasury shares 1,688,701 285,011 30.23 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Earnings per share | a) Basic Basic earnings per share is calculated by dividing net income attributable to equity holders of PagSeguro Digital by the weighted average number of common shares issued and outstanding during the year ended December 31, 2021, 2020 and 2019: For the year ended December 31, 2021 2020 2019 Profit attributable to stockholders of the Company 1,166,102 1,291,658 1,365,597 Weighted average number of outstanding common shares (thousands) 330,310,786 329,292,240 328,169,609 Basic earnings per share - R$ 3.5303 3.9225 4.1613 b) Diluted Diluted earnings per share is calculated by dividing net income attributable to equity holders of PagSeguro Digital by the weighted average number of common shares outstanding during the year plus the weighted average number of common shares that would be issued on conversion of all dilutive potential common shares into common shares. The share in the LTIP are the only shares with potential dilutive effect. In this case, a calculation is done to determine the number of shares that could have been acquired at fair value. For the year ended December 31, 2021 2020 2019 Profit used to determine diluted earnings per share 1,166,102 1,291,658 1,365,597 Weighted average number of outstanding common shares (thousands) 330,310,786 329,292,240 328,169,609 Weighted average number of shares that would have been issued at average market price 1,864,038 521,937 1,090,047 Weighted average number of common shares for diluted earnings per share (thousands) 332,174,824 329,814,177 329,259,656 Diluted earnings per share - R$ 3.5105 3.9163 4.1475 |
Total revenue and income
Total revenue and income | 12 Months Ended |
Dec. 31, 2022 | |
Revenue and income [Abstract] | |
Total revenue and income | 23. Total revenue and income For the year ended December 31, 2021 2020 2019 Gross revenue from transaction activities and other services (i) 7,574,728 5,059,464 3,862,627 Gross revenue from sales (ii) — — 243,728 Gross financial income (iii) 3,587,823 2,193,961 2,054,430 Other financial income (iv) 149,491 128,595 126,404 Total gross revenue and income 11,312,042 7,382,020 6,287,189 Deductions from gross revenue from transactions activities and other (789,922) (550,744) (486,559) Deductions from gross revenue from sales (ii) — — (69,502) Deductions from gross financial income (vi) (73,398) (16,603) (23,919) Total deductions from gross revenue and income (863,320) (567,347) (579,980) Total revenue and income 10,448,722 6,814,673 5,707,209 (i) In the year ended December 31, 2021, R$268,931 corresponds to membership fee (R$140,803 in the year ended December 31, 2020). (ii) On September 1st, 2019, the Company changed its POS police to merchants from sale to membership fee. (iii) Includes interest income from early payment of notes payable to third parties. (iv) Includes (a) interest of financial investments and (b) gain on exchange variation. (v) Deductions consist of transactions taxes. Additionally, in the year ended December 31, 2021, R$24,876 (R$13,314 in the year ended December 31, 2020) correspond to membership fee taxes. (vi) Deductions consist of taxes on financial income. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature [Abstract] | |
Expenses by nature | For the year ended December 31, 2021 2020 2019 Transactions costs (i) (4,321,135) (2,773,436) (1,815,374) Cost of goods sold (ii) — — (463,293) Marketing and advertising (791,134) (510,840) (476,466) Personnel expenses (iii) (1,074,249) (619,137) (399,104) Financial expenses (iv) (790,635) (109,232) (38,138) Chargebacks and ECL (v) (664,268) (288,309) (200,633) Depreciation and amortization (vii) (768,593) (376,335) (128,348) Other (vi) (550,681) (362,693) (273,314) (8,960,695) (5,039,982) (3,794,670) Classified as: Cost of services (5,775,895) (3,772,298) (2,236,066) Cost of sales — — (526,021) Selling expenses (1,523,908) (617,463) (565,170) Administrative expenses (877,559) (563,893) (427,366) Financial expenses (790,635) (109,232) (38,138) Other income (expenses), net 7,302 22,904 (1,909) (8,960,695) (5,039,982) (3,794,670) (i) The increase is mainly represented by (i) costs related to freight, maintenance of POS and storage costs in the amount R$242,834 for year ended December 31, 2021 (R$212,813 and R$120,870 for years ended December 31, 2020 and 2019), (ii) costs related to interchange fees of card issuers were the amount of R$3,043,591 for the year ended December 31, 2021 (R$1,680,441 and R$1,390,600 for years ended December 31, 2020 and 2019), (iii) card scheme fees in the amount of R$653,224 for the year ended December 31, 2021 (R$432,361 and R$292,629 for years ended December 31,2020 and 2019) and (iv) in 2021, PagSeguro had a cost of R$117,547 related to PagPhone net realizable value and obsolescence adjustment. (ii) On September 1st, 2019, the Company changed its POS police to merchants from sale to membership fee. (iii) Includes R$370,629, R$207,012 and R$156,273 of compensation expenses related to the LTIP and LTIP goals for the years ended December 31, 2021, 2020 and 2019, respectively. The increase in personnel expenses is mainly related to the LTIP and LTIP goals expenses and Hubs’ workforce expansion. (iv) Relates mainly to the early collection of receivables, which amounted to R$426,992 in the year ended December 31, 2021 (R$49,204 and R$20,570 in the years ended December 31, 2020 and 2019). The remaining increase is related to expenses with higher amount of interests on deposits due to the increase of Brazilian interest rates and exchange rate in foreign currency. (v) Chargebacks refer to losses recognized during the period related to card processing operations (acquiring and issuing), losses on digital accounts and provision for delinquency rate of credit portfolio, as detailed in Note 26. In the first quarter of 2021, the amount of R$73,356 is represented by inappropriate use of a system functionality implemented in the past, allowing unappropriated transactions by digital accounts customers and unexpected chargebacks on digital account losses for specific group of customers with higher credit risk for a new product. For all these facts, the corresponding root cause was identified and appropriately addressed by PagSeguro management, and there were no losses from these matters in second and third quarters of 2021. Additionally, the increase is related to credit initiatives ECLs as detailed in note 8.. (vi) In the year ended December 31, 2021, includes R$29,114 related to the reversal in the tax payable as detailed in Note 17 and R$24,476 related to an impairment of tax recoverable as detailed in Note 9. In the year ended December 31, 2020, includes R$84,294 related to the reversal of taxation of PIS/COFINS on financial income. (vii) Depreciation and amortization amounts incurred in the period are segregated between costs and expenses as presented below: For the year ended December 31, 2021 2020 2019 Depreciation Cost of sales and services (i) (464,411) (187,284) (33,421) Selling expenses (89) (25) (28) Administrative expenses (23,439) (17,319) (4,421) (487,939) (204,628) (37,870) Amortization Cost of sales and services (295,218) (174,943) (97,765) Administrative expenses (21,484) (4,709) (1,892) (316,702) (179,652) (99,657) PIS and COFINS credits (ii) 36,048 7,945 9,179 Depreciation and amortization expense, net (768,593) (376,335) (128,348) (i) The depreciation of POS in the year ended December 31, 2021, amounted to R$448,385 ( R$172,519 in the year ended December 31, 2020). (ii) PagSeguro Brazil has a tax benefit on PIS and COFINS that allows it to reduce the depreciation and amortization over some operational expenses when incurred. This tax benefit is recognized directly as a reduction of depreciation and amortization expense. |
Financial instruments by catego
Financial instruments by category | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments by category [Abstract] | |
Financial instruments by category | The PagSeguro Group estimates the fair value of its financial instruments using available market information and appropriate valuation methodologies for each situation. The interpretation of market data, as regards the choice of methodologies, requires considerable judgment and the establishment of estimates to reach an amount considered appropriate for each situation. Therefore, the estimates presented may not necessarily indicate the amounts that could be obtained in the current market. The use of different hypotheses to calculate market value or fair value may have a material impact on the amounts obtained. The assets and liabilities presented in this Note were selected based on their relevance. The PagSeguro Group believes that the financial instruments recognized in these consolidated financial statements at their carrying amount are substantially similar to their fair value. However, since they do not have an active market (except for the LFT included in financial investments, which is actively traded in the market), variations could occur in the event the PagSeguro Group were to decide to settle or realize them in advance. The PagSeguro Group classifies its financial instruments into the following categories: December 31, 2021 December 31, 2020 Financial assets Amortized cost: Cash and cash equivalents 1,794,362 1,640,065 Accounts receivables 23,657,402 16,076,540 Other receivables 206,486 164,805 Judicial deposits 40,224 7,449 Investment 1,406 1,400 Fair value through other comprehensive income Financial investments 782,647 979,837 26,482,527 18,870,096 December 31, 2021 December 31, 2020 Financial liabilities Amortized cost: Payables to third parties 13,217,150 10,101,510 Trade payables 578,004 335,539 Trade payables to related parties 543,621 58,336 Deposits 3,133,996 766,086 Borrowings 1,005,787 — Deferred revenue 179,866 213,555 Other liabilities 143,884 159,198 Fair value through profit or loss Derivative financial instruments 14,317 — 18,816,625 11,634,224 |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial risk management [Abstract] | |
Financial risk management | The PagSeguro Group’s activities expose it to a variety of financial risks: market risk, fraud risk (chargebacks), credit risk and liquidity risk. The PagSeguro Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the PagSeguro Group’s financial performance. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. In the Group, market risk comprises interest rate risk and foreign currency risk and other price risk, such as equity price risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group's exposure to the risk of changes in market interest rates arises primarily from financial investments and deposits both subject to variable interest rates, principally the CDI rate. The Group conducted a sensitivity analysis of the interest rate risks to which the financial instruments are exposed as of December 31, 2021. For this analysis, the Group adopted as a probable scenario for 2022 interest rates of 11.5% for the CDI (increase of 25%). As a result, financial income (with respect to financial investments) and financial expense (with respect to certificate of deposit, corporate securities and borrowings) would be impacted as follows: Transaction Interest rate risk Book Value Scenario with maintaining of CDI (9.15%) Probable scenario with increase of 25% (to 11.5%) Cash and cash equivalents 100% of CDI 1,794,362 164,184 206,352 Financial investments 100% of CDI 782,647 71,612 90,004 Certificate of deposit 163% of CDI 2,510,818 (374,476) (470,653) Interbank deposits 118% of CDI 404,998 (43,728) (54,958) Corporate securities 152% of CDI 218,180 (30,345 (38,138) Bank accounts (note 14) 59% of CDI 5,167,577 (278,972) (350,620) Borrowings 109% of CDI 1,005,787 (100,312) (126,075) Total (592,037) (744,088) Foreign exchange risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity's functional currency. The Company’s risk is mainly related to Boa Compra and BCPS that have revenues in other currencies and cash and cash equivalents maintained in other countries. Additionally, as mentioned in note 19, in November 2021, the Group entered in a US$180 million borrowing agreement and also contracted a derivative financial instrument with the specific objective of protecting from fluctuations arising from exchange variation. Our exchange income (expense), are demonstrated below: December 31 2021 December 31, 2020 Exchange variation on P&L, net (10,645) 55,217 Equity price risk The Group’s non-listed equity investments are susceptible to market price risk arising from uncertainties about future values of the investment. As of December 31, 2021 and December 31, 2020, the exposure to equity price from such investments was not material. Fraud Risk (chargeback) The PagSeguro Group’s sales transactions are susceptible to potentially fraudulent or improper sales and it uses the following two processes to control the fraud risk: (i) The first process consists of monitoring, on a real time basis, the transactions carried out with credit and debit cards and payment slips, through an anti-fraud system. This process approves or rejects suspicious transactions at the time of the authorization, based on statistical models that are revised on a periodic basis. (ii) The second process detects chargebacks and disputes not identified by the first process. This is a supplemental process and increases the PagSeguro Group’s ability to avoid new frauds. PagSeguro’s expenses with chargeback, which was impacted by specific events in the year ended December 31, 2021, are disclosed in note 24. Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily accounts receivable) and from its financing activities, including deposits with banks and financial institutions, and other financial instruments such as loans and credit card receivables with the Company’s customers. Credit risk is managed on a group basis and for its accounts receivable is limited to the possibility of default by: (a) the card issuers, which have the obligation of transferring to the credit and debit card labels the fees charged for the transactions carried out by their card holders, (b) the acquirers, which are used by the PagSeguro Group to approve transactions with the issuers and (c) analyses for the customers background to provide access to credit portfolio. In order to mitigate this risk, PagSeguro Brazil has established a Credit and Liquidity Risk Committee, whose responsibility is to assess the level of risk of each of the card issuers served by PagSeguro Group, classifying them into three groups: (i) Card issuers with a low level of risk, with credit ratings assigned by FITCH, S&P and Moody’s, which do not require additional monitoring. (ii) Card issuers with a medium level of risk, which are also monitored in accordance with the financial metrics and ratios; and (iii) Card issuers with a high level of risk, which are assessed by the committee at monthly meetings. PagSeguro has a rating process for loans and credit, based on statistical application models (in the early stages of customer relationships) and behavior scoring (used for customers who already have a relationship history). A process for designing, calibrating and implementing policies and guidelines for granting credit and calibrating collection rules. A process for monitoring the portfolio's risk profile, with a prospective view, which generates early warning feedbacks to the credit granting policies and risk classification models in a timely manner. Liquidity risk The PagSeguro Group manages liquidity risk by maintaining reserves, bank and credit lines for the obtaining borrowings, when deemed appropriate. The PagSeguro Group continuously monitors actual and projected cash flows and matches the maturity profile of its financial assets and liabilities in order to ensure that the PagSeguro Group has enough funds to honor its obligations to third parties and meet its operational needs. The PagSeguro Group invests surplus cash in interest bearings financial investments, choosing instruments with appropriate maturity or enough liquidity to provide adequate margin as determined by the forecasts. On December 31, 2021, PagSeguro Group held cash and cash equivalents of R$1,794,362 (R$1,640,065 on December 31, 2020). The table below shows the PagSeguro Group’s non-derivative financial liabilities divided into the relevant maturity group based on the remaining period from the balance sheet date and the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Due within 30 days Due within 31 to 120 days Due within 121 to 180 days Due within 181 to 360 days Due to 361 days or more days On December 31, 2021 Payables to third parties 10,415,882 1,770,271 504,444 526,553 — Trade payables 573,570 4,339 95 — — Trade payables to related parties — 259,216 5,691 323,203 — Deposits 655,289 1,073,239 334,942 1,201,888 90,595 Borrowings — — — 1,114,211 — On December 31, 2020 Payables to third parties 8,348,127 1,146,136 300,058 299,645 7,544 Trade payables 332,733 2,806 — — — Trade payables to related parties — 46,945 5,132 6,438 — Deposits 5,231 77,812 53,000 435,952 194,091 |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2021 | |
Capital management [Abstract] | |
Capital management | 27. Capital management The PagSeguro Group monitors capital based on the gearing ratio which corresponds to net debt divided by total capital. Net debt is calculated as total borrowings (including current and non-current borrowings as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as equity as shown in the consolidated balance sheet plus net debt. December 31, 2021 Borrowings 1,005,787 (-) Cash and cash equivalents (1,794,362) Net debt (788,575) Total equity 10,502,198 Total capital 9,713,623 Gearing ratio (8.1) % |
Non-cash Transactions
Non-cash Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Non-cash Transactions [Abstract] | |
Non-cash Transactions | For the year ended December 31, 2021 2020 2019 Non-cash operation activities Distribution of LTIP with treasury shares 13,410 72,433 — Transfer of POS from inventory to property and equipment — — (42,429) Non-cash investing activities Property and equipment acquired through lease 15,016 79,031 — MTM of financial investments 271 (278) (28) Income taxes on the fair value of acquired assets 32,748 — — Unpaid consideration for acquisition 8,896 68,701 1,961 Non-cash financing activities Unpaid consideration for acquisition of non-controlling shares — — 1,574 |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurement [Abstract] | |
Fair value measurement | 29. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. A three-level hierarchy is used to measure fair value, as shown below: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). • Level 3 – Inputs for the assets and liabilities that are not based on observable market data (that is, unobservable inputs). The following table provides the fair value measurement hierarchy of PagSeguro Group’s financial assets and financial liabilities as of December 31, 2021: December 31, 2021 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 446,322 1,348,040 — Financial investments 782,647 — — Accounts receivable — 23,657,402 — Other receivables — 206,486 — Judicial deposits — 40,224 — Investment — — 1,406 Financial liabilities Payables to third parties — 13,217,150 — Trade payables — 578,004 — Trade payables to related parties — 543,621 — Deposits — 3,133,996 — Borrowings — 1,005,787 — Derivative financial instruments — 14,317 — Deferred revenue — 179,866 — Other liabilities — 143,884 — December 31, 2020 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 321,674 1,318,391 — Financial investments 979,837 — — Accounts receivable — 16,076,540 — Other receivables — 164,805 — Judicial deposits — 7,449 — Investment — — 1,400 Financial liabilities Payables to third parties — 10,101,510 — Trade payables — 335,539 — Trade payables to related parties — 58,336 — Deposits — 766,086 — Deferred revenue — 213,555 — Other liabilities — 159,198 — The PagSeguro Group believes that the financial instruments recognized in these consolidated financial statements at their carrying amount are substantially similar to their Financial assets also include the financial investments represented by government bonds with quoted prices in an active market and recognized in the balance sheet based on its fair value. Financial liabilities are mostly represented by deposits and short-term payables to merchants which are paid in accordance with the contract set out with the merchant and other short-term payables to service providers in the normal course of business and, as such, also approximate from their fair values. There were no transfers between Levels 1, 2 and 3 during the year ended December 31, 2021. |
Accounting policies, changes _2
Accounting policies, changes in accounting estimates and errors (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of voluntary change in accounting policy [abstract] | |
Basis of preparation of the consolidated financial statements | 2.1. Basis of preparation of the consolidated financial statements These consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”) and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The consolidated financial statements are presented in thousands of Brazilian reais, unless otherwise indicated, which is the functional currency of PagSeguro Group. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying PagSeguro Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 3. These consolidated financial statements as of December 31, 2021 and 2020 and for the three years ended December 2021, were authorized for issuance by PagSeguro Digital’s Board of Directors on March 15, 2022. |
Basis of consolidation | 2.2. Basis of consolidation PagSeguro Group consolidates all entities over which it has control. Control is achieved when PagSeguro Group is exposed or has rights to variable returns with its involvement with the investee and can affect those returns through its power over the investee’s relevant activities. Subsidiaries are all entities over which PagSeguro Digital has control. Subsidiaries are fully consolidated from the date PagSeguro Group obtains control of the subsidiary and ceases when PagSeguro Group loses control of the subsidiary. The subsidiaries included in the consolidation are described in Note 4. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. |
Foreign currencies | 2.3. Foreign currencies i) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency sport rates of exchange at the reporting date. Foreign exchange gains and losses resulting from the settlement of these transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. ii) Group companies On consolidation, the assets and liabilities of foreign operations are translated into Reais at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. |
Cash and cash equivalents | 2.4. Cash and cash equivalentsCash and cash equivalents are held for the purpose of meeting short-term cash needs and not for investment or any other purposes. PagSeguro Group classifies as cash equivalents a financial investment that can be immediately converted into a known amount of cash and is subject to immaterial risk of change in value. PagSeguro Group classifies financial instruments with original maturities of three months or less as cash equivalents. |
Financial instruments—initial recognition and subsequent measurement | 2.5. Financial instruments – initial recognition and subsequent measurement i) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition and subsequently measured at amortized cost, fair value through other comprehensive income (“OCI”), and fair value through profit or loss. The classification depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. For a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (“SPPI”) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling (such as the financial investment disclosed on Note 7). Financial assets include cash and cash equivalents, financial investments, accounts receivable, judicial deposits and other receivables. Subsequent measurement The subsequent measurement of financial assets depends on their classification, which may be (i) financial assets at amortized cost; (ii) financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments); (iii) financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and (iv) financial assets at fair value through profit or loss. Financial assets at amortized cost Financial assets at amortized cost relating to debt instruments are subsequently measured using the effective interest method and are subject to impairment. Financial assets at amortized cost relating to equity instruments are measured at cost of acquisition. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost includes cash and cash equivalents, accounts receivable, judicial deposits, investments and other receivables. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are presented at fair value in the balance sheet, with the corresponding gains or losses recognized in the statement of income. The Group does not hold any financial asset within this category. Financial assets at fair value through OCI For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Group’s debt instruments at fair value through OCI includes investments in Brazilian Treasury Bonds, as disclosed in Note 7. Financial assets designated at fair value through OCI (equity instruments) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. The Group does not hold any financial asset within this category. Derecognition A financial asset or, where applicable, a part of a financial asset or part of a group of similar financial assets, is derecognized when: • The rights to receive cash flows from the asset expire; or • PagSeguro Group transfers its rights to receive cash flows from the asset, or assumes an obligation to pay the received cash flows in full to a third party under a “pass-through” arrangement; and (a) transfers virtually all the risks and benefits of the asset, or (b) neither transfers nor retains virtually all the risks and benefits of the asset, but transfers control of the asset. When PagSeguro Group has transferred its rights to receive cash flows from an asset and has not transferred or retained substantially all the risks and benefits of the asset, this asset is recognized to the extent of PagSeguro Group’s continuing involvement in the asset. In such case, PagSeguro Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that PagSeguro Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of the consideration that PagSeguro Group may be required to repay. ii) Impairment of financial assets PagSeguro Group assesses, at the balance sheet date, if there is objective evidence that a financial asset or a group of financial assets is impaired. The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The Group applies a credit risk policy taking into consideration the possibility of default by: (a) the card issuers, which have the obligation of transferring to the credit and debit card labels the fees charged for the transactions carried out by their card holders, and/or (b) the acquirers, which are used by the PagSeguro Group to approve transactions with the issuers. To mitigate this risk, the PagSeguro Group has established a Credit and Liquidity Risk Committee, whose responsibility is to assess the level of risk of each of the card issuers served by PagSeguro Group, as discussed in Note 26. For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. The Group’s debt instruments at fair value through OCI comprise solely investments in Brazilian Treasury Bonds, considered to be low credit risk investments. iii) Financial liabilities Initial recognition and measurement Financial liabilities are classified at initial recognition, as financial liabilities at fair value through profit or loss, or amortized cost. PagSeguro Group determines the classification of its financial liabilities at initial recognition. Financial liabilities include payables to third parties, payables to related parties, trade payables and other payables. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification, which may be as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and financial liabilities designated at fair value through profit or loss at initial recognition. Financial liabilities are classified as held-for-trading if acquired for sale in the short term. This category includes derivative financial instruments which do not meet the hedge accounting criteria defined by IFRS 9 – Financial Instruments. Gains and losses on held-for-trading liabilities are recognized in the statement of income. Financial liabilities at amortized cost After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost, using the effective interest rate method, and are recognized in the statement of income. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in “Financial expenses” in the statement of income. Derecognition A financial liability is derecognized when the obligation is discharged, canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and recognition of a new liability, and the difference in the respective carrying amounts is recognized in the statement of income. iv) Financial instruments – offsetting Financial assets and liabilities are presented net in the balance sheet if, and only if, there is an existing and enforceable legal right to offset the amounts recognized and an intention to offset or to realize the asset and settle the liability simultaneously. v) Fair value of financial instruments The fair value of financial instruments actively traded in organized markets is determined based on quoted market prices at the balance sheet date, without a deduction of transaction costs. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These techniques include the use of recent arm’s length transactions, reference to other similar instruments, discounted cash flow analysis or other valuation methods. vi) Current versus non-current classification The PagSeguro Group presents financial assets and liabilities in the balance sheet based on current and non-current classification. An asset is current when it is: (i) expected to be realized or intended to be sold or consumed in the normal operating cycle; (ii) held primarily for the purpose of trading; (iii) expected to be realized within twelve months after the reporting period; or (iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: (i) it is expected to be settled in the normal operating cycle; (ii) it is held primarily for the purpose of trading; (iii) it is due to be settled within twelve months after the reporting period; or (iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. vii) Derivative Financial Instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. At inception of the hedge relationship, the group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the remaining period until maturity, using a recalculated effective interest rate. |
Accounts receivable | 2.6. Accounts receivable Accounts receivable include mainly the receivables from credit/debit card issuers and acquirers originated from transactions through PagSeguro Group payment platform and credit operations. Accounts receivables are initially recorded at the fair value net of the expected credit losses. If the term is equivalent to one year or less, accounts receivable is classified as current assets, if not, as non-current assets. Based on PagSeguro Brazil’s risk assessment, the expected credit loss is mainly comprised of transactions approved by large financial institutions that have a low overall risk level based on ratings received from major credit rating agencies. Additionally, these financial institutions are the legal obligors to the accounts receivable. (note 26). For debit and credit cards receivables from the clients, the credit risk is low based on historical credit losses and is updated considering other external factors, such as credit ratings assigned by FITCH, S&P and Moody’s. PagSeguro Group incurs financial expenses when an election to receive early payment of accounts receivable from financial institutions is made. This financial expense is recognized at the time the financial institution agrees to liquidate the accounts receivable due in installments on a prepaid basis, and it is recorded as Financial expenses in the statement of income. |
Inventories | 2.7. Inventories Inventories consist of POS devices. Inventories are stated at historical cost. The Company used the average cost method to account for inventories' cost and corresponding provision for losses is recognized when sale value is higher than its purchase cost. |
Property and equipment | 2.8. Property and equipment Property and equipment is stated at historical cost, net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditures that are directly attributable to the acquisition of the items and may also include finance costs related to the acquisition of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with these costs will flow to PagSeguro Group and that such benefits can be reliably measured. The carrying amount of replaced items or parts is derecognized. All other repairs and maintenance expenses are charged to the statement of income during the year in which they are incurred. The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. An item of property and equipment is derecognized upon disposal or when future economic benefits are expected from its use or disposal. Any gain or loss on disposal (calculated as the difference between the net disposal proceeds with the carrying amount of the asset) is recognized within “Other (expenses) income, net” in the statement of income when an asset is derecognized. An asset’s carrying amount is immediately written down to its recoverable amount when the asset’s carrying amount is greater than its estimated recoverable amount. See note 2.10. |
Intangible assets | 2.9. Intangible assets Software licenses are recorded at historical cost. Software licenses are amortized on the straight-line basis over the estimated useful life of the software which is approximately five years. Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by PagSeguro Group are recognized as intangible assets. Directly attributable costs relating to internal development of software are capitalized as part of the software product, which mainly includes costs incurred with employees and third-party contracted services. Other development expenditures that do not meet the capitalization criteria are expensed as incurred. Development costs previously recorded as an expense are not recognized as an asset in a subsequent period and are included in the income statement. Capitalized computer software development costs are amortized over their estimated useful lives which are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. In 2019 the useful life of software’s developed was changed from three years to five years from the date that technological feasibility is met. This change was based on the following assumptions: i) business strategy, ii) history of use of goods/technology, iii) guarantee of suppliers, iv) technical quality of assets and v) preventive maintenance. |
Impairment of non-financial assets | 2.10. Impairment of non-financial assets The PagSeguro Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the PagSeguro Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pos-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. The Group bases its impairment calculation on most recent budgets and forecast calculations. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is impaired when the recoverable amount of the CGU is less than it is carrying amount, an impairment loss is recognized. |
Payables to third parties | 2.11. Payables to third parties Payables to third parties refer to funds payable and amounts due to merchants that use PagSeguro Brazil platform. PagSeguro Group recognizes a liability for the transaction amount, net of the transaction cost that will be made available to the merchant on its PagSeguro account. The payables to third parties from installment transactions are estimated based on the fair value, in accordance with the terms of these transactions. |
Deposits | 2.12. Deposits The PagSeguro Group has sell-buy back transactions (sales of financial assets with future repurchase agreement). Such repurchase agreements are recorded in term deposits accounts when refers to certificate deposits operations and interbank deposits accounts for financial letter issuance purposes. The difference between sale price and repurchase price is treated as interest and it is recognized during the term of the agreement by effective interest rate method. |
Borrowings | 2.13. Borrowings Borrowings are initially recognized at fair value less any directly attributable transaction costs. After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method, except for the embedded derivative, which is measured at fair value through profit or loss. Gains and losses are recognized in the consolidated income statements when the liabilities are derecognized as well as through the effective interest method amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the effective interest method. The effective interest method amortization is included in interest expense in the consolidated income statements. |
Provisions | 2.14. Provisions Provisions are recognized when PagSeguro Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. When PagSeguro Group expects the value of a provision to be reimbursed, in whole or in part (for example, due to an insurance contract) the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. Expenses associated with any provisions are presented in the statement of income, net of any reimbursements. PagSeguro Group is a party to legal and administrative proceedings. Provisions are established for all contingencies related to lawsuits for which it is probable that an outflow of funds will be necessary to settle the contingency/obligation and a reasonable estimate can be made. The assessment of the likelihood of loss includes the evaluation of available evidence, the hierarchy of laws, available case law, recent court decisions and their importance in the legal system, as well as the opinion of outside legal counsel. The provisions are reviewed and adjusted to reflect changes in circumstances. |
Revenue and income | 2.15. Revenue and income Revenue from contract with customers is recognized as control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services in the ordinary course of PagSeguro Group’s activities. Revenue is presented net of sales and excise taxes and returns. PagSeguro Group’s revenue from contract with customers substantially comprises: • Revenue from transaction activities and other services: Revenue from fees charged for intermediation of electronic payments, and other services such as prepaid cards, which are recognized at the time the purchase is approved by the financial institution. Revenues from fees charged for intermediation of electronic payments are recognized on a gross basis and related transaction costs are recognized as Cost of sales and services, since PagSeguro Group is the principal in the intermediation transaction. PagSeguro Group has primary responsibility for providing the services to customers and directly sets the prices for such services, independently from the related transaction costs agreed between PagSeguro Group and the card schemes or card issuers. • Revenue from sales (recognized until August 30, 2019): Revenue from sales of POS devices and similar items, which is recognized when control of a good is transferred to the customers, i.e., on delivery of the equipment. Under Brazilian consumer law, clients have seven days after ordering Point of Sale equipment (“POS devices”) to cancel the purchase. Returns of devices are accounted for as deductions from revenue from sales at the time the equipment is returned. Revenue is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment at the customer’s location. • Revenue from membership fee: Beginning on September 1st, 2019, the Company charges a non-refundable membership fee at the inception of the contract with customers that provides access to the PagSeguro Group ecosystem. Revenue related to the non-refundable membership fee has been deferred according to the PagSeguro clients’ internal metrics and recognized in deferred revenues. • Income is mostly comprised of financial income recognized because of the discount rate charged on the early payments of payables to third parties (merchants). The income is recognized at the time the merchant agrees to receive a sale in installments on an early payment basis, and it is recorded as financial income in the statement of income. |
Current and deferred income tax and social contribution | 2.16. Current and deferred income tax and social contribution Current income tax and social contribution Tax assets and liabilities for the current year are calculated based on the expected recoverable amount or the amount payable to the tax authorities. The tax rates and tax laws used to calculate the amount are those enacted or substantively enacted at the balance sheet date in the countries where PagSeguro Group operates and generates taxable income. Current income tax and social contribution related to items recognized directly in equity are recognized in equity. PagSeguro Group periodically evaluates the tax positions involving interpretation of tax regulations and establishes provisions when appropriate. Deferred taxes Deferred taxes arise from temporary differences between the tax bases of assets and liabilities and their carrying amounts at the balance sheet date. Deferred tax liabilities are recognized for all temporary taxable differences, except in the following situations: • When the deferred tax liability arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit; and • On temporary tax differences related to investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized on all deductible temporary differences and tax loss carryforwards, to the extent that it is probable that taxable profit will be available against which they can be offset, except: • When the deferred tax asset related to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss; and • On the deductible temporary differences associated with investments in subsidiaries. Deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and that taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and a deferred tax asset is recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are re-assessed, at each reporting date and are recognized to the extent that it has become probable that future taxable profits will be available to allow their utilization. Based on the local law of the Cayman Islands (specifically, the Companies Law of 1960), there is no taxation on the income earned by companies organized in this jurisdiction. Therefore, PagSeguro Digital has no income tax impacts in the Cayman Islands. For the subsidiaries of PagSeguro Digital, deferred tax assets and liabilities are measured using the prevailing tax rates in the year in which the assets will be realized, and the liabilities will be settled. The currently defined tax rates of 25% for income tax and 9% for social contribution are used to calculate deferred taxes, except for BancoSeguro, which currently defined tax rates of 25% for income tax and 25% for social contribution, according to the law 14.183. Deferred tax assets and liabilities are presented on a net basis when there is legally or contractually enforceable right to offset the tax asset against the tax liability, and the deferred taxes are related to the same taxable entity and subject to the same tax authority. |
Employee benefits—Profit sharing | 2.17. Employee benefits – Profit sharing PagSeguro Group recognizes a liability and an expense for profit sharing subject to achievement of operational targets and performance established and approved at the beginning of each fiscal year. PagSeguro Group recognizes a provision when contractually obliged or when there is a past practice that has created a constructive obligation. |
Business combination and goodwill | 2.18. Business combination and goodwill PagSeguro Group accounts for business combinations using the acquisition method. The cost of an acquisition is measured as the sum of the consideration transferred, based on its fair value on the acquisition date. Costs directly attributable to the acquisition are expensed as incurred. The assets acquired, and liabilities assumed are measured at fair value, classified and allocated according to the contractual terms, economic circumstances and relevant conditions on the acquisition date. PagSeguro Group recognizes any non-controlling interest in the acquired business either at fair value or at the non-controlling interest’s proportionate share of the fair value of the acquired businesses’ identifiable net assets. Non-controlling interests are determined upon each acquisition. Acquisition-related costs are accounted for in the statement of income as incurred. Goodwill is measured as the excess of the consideration transferred over the fair value of net assets acquired. If the consideration transferred is smaller than the fair value of net assets acquired, the difference is recognized as a gain on bargain purchase in the statement of income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognized in the statement of profit or loss in accordance with IFRS 9. |
Treasury shares | 2.19. Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the PagSeguro Group’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in equity. |
Share-based payments (LTIP and LTIP Goals) | 2.20. Share-based payments (LTIP and LTIP Goals) LTIP-Goals was established by PagSeguro Brazil on December 18, 2018, as approved by the Company’s board of directors, and ratified on August 7, 2019, February 21, 2020 and January 19, 2021. Beneficiaries under the LTIP-Goals are selected by the LTIP-Goals Committee, which consists of the Company’s Chairman of the board of directors and two officers of UOL. Beneficiaries under the LTIP-Goals are granted awards, which may be payable in cash, Class A common shares or a combination of the two, at the discretion of the LTIP-Goals Committee based on the goals established in the Company’s corporate results-sharing plan for any given year. If any portion of an award was payable in Class A common shares, the relevant value in Brazilian reais was converted into Class A common shares on the last business day of January for awards related to 2019 and 2020. For awards related to 2021 and beyond, the LTIP-Goals Committee will set a determination date that falls no later than on the last business day of March following the year for which such amount was awarded. Under the LTIP-Goals plan, the relevant payment shall be made and/or Class A common shares delivered within 10 business days of that determination date. Before the LTIP-Goals was created, members of management participated in the LTIP, which was established by UOL for its group companies on July 29, 2015 and was adopted by PagSeguro Digital Ltd. Beneficiaries under the LTIP were selected by UOL’s LTIP Committee, which consists of the Company’s chairman and two officers of UOL. Since the establishment of LTIP-Goals on December 18, 2018, no new rights have been, nor will be, granted under the LTIP. Beneficiaries under the LTIP were granted rights in the form of notional cash amounts without cash consideration. In this plan, employees (including senior executives) of the UOL group companies receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value at the date when the grant is made. These rights vest in five equal annual installments starting one year after the beneficiary’s grant date. |
New accounting pronouncements | 2.21. New accounting standards adopted in 2021 The accounting policies adopted in the preparation of the Consolidated financial statements for the year ended December 31, 2021 are consistent with those adopted for the year ended December 31, 2020, except for the changes required by the pronouncements, interpretations and standards which became effective on January 1, 2021, as described below. IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation, and disclosure, which became effective on January 1, 2021. IFRS 17 replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance, and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The Group analyzed their contracts and concluded that is not exposed to insurance contracts. 2.22. New accounting standards not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the consolidated financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Amendment to IAS 16 "Property, plant and equipment": In May 2020, the IASB issued an amendment prohibiting an entity from deducting from the cost of property, plant and equipment amounts received from the sale of items produced while the asset is being prepared for its intended use. Such revenues and related costs must be recognized in profit or loss for the year. The effective date of application of this change is January 1, 2022. The group does not expect the new amendment to materially impact its results of operations. Amendment to IAS 37 "Provision, Contingent Liabilities and Contingent Assets": In May 2020, the IASB issued this amendment to clarify that, for purposes of assessing whether a contract is onerous, the cost of performing the contract includes the incremental costs of performing of this contract and an allocation of other costs that relate directly to the performance of this contract. The effective date of application of this change is January 1, 2022. The group does not expect the new amendment to materially impact its results of operations. Annual Improvements - 2018-2020 Cycle: In May 2020, the IASB issued the following changes as part of the annual improvement process, effective January 1, 2022: (i) IFRS 9 - "Financial Instruments" - clarifies which rates must be included in the 10% test for the write-off of financial liabilities. (ii) IFRS 16 - "Leases" - amendment of example 13 in order to exclude the example of lessor payments related to improvements in the leased property. (iii) IFRS 1 "First-time Adoption of International Financial Reporting Standards" - simplifies the application of said standard by a subsidiary that adopts IFRS for the first time after its parent company, in relation to the measurement of the accumulated amount of exchange rate variations. (iv) IAS 41 - "Biological Assets" - removal of the requirement to exclude cash flows from taxation when measuring the fair value of biological assets and agricultural products, thus aligning the fair value measurement requirements in IAS 41 with those of other IFRS standards. The group does not expect the new improvements to materially impact its results of operations. Amendment to IAS 1 "Presentation of Financial Statements": issued in May 2020, with the objective of clarifying that liabilities are classified as current or non-current, depending on the rights that exist at the end of the period. The classification is not affected by the entity's expectations or events after the reporting date (eg, receipt of a waiver or breach of covenant). The amendments also clarify what "settlement" of a liability refers to under IAS 1. The amendments to IAS 1 are effective as of January 1, 2023. The group does not expect the new amendment to materially impact its results of operations. Amendment to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies: in February 2021 the IASB issued a new amendment to IAS 1 on disclosure of "material" accounting policies rather than "significant" accounting policies. The amendments define what "material accounting policy information" is and explain how to identify it. It also clarifies that immaterial accounting policy information does not need to be disclosed, but if so, it should not obscure the relevant accounting information. To support this change, the IASB also amended the "IFRS Practice Statement 2 Making Materiality Judgments" to provide guidance on how to apply the concept of materiality to accounting policy disclosures. This amendment is effective as of January 1, 2023. The group does not expect the new amendment to materially impact its results of operations. Amendment to IAS 8 - Accounting Policies, Change in Estimate and Error Rectification: the amendment issued in February 2021 clarifies how entities must distinguish changes in accounting policies from changes in accounting estimates, as changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events, as well as to the current period. This amendment is effective as of January 1, 2023. The group does not expect the new amendment to materially impact its results of operations. Amendment to IAS 12 - Income Taxes: the amendment issued in May 2021 requires entities to recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. This typically applies to lease transactions (right-of-use assets and lease liabilities) and decommissioning and restoration obligations, as an example, and will require the recognition of additional deferred tax assets and liabilities. This amendment is effective as of January 1, 2023. |
Accounting policies, changes _3
Accounting policies, changes in accounting estimates and errors (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of voluntary change in accounting policy [abstract] | |
Presentation and preparation of the consolidated financial statements and significant accounting policies | The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. |
Disclosure of detailed information about property, plant and equipment | The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. |
Presentation and preparation _2
Presentation and preparation of the consolidated financial statements and significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Presentation and preparation of the consolidated financial statements and significant accounting policies [Abstract] | |
Presentation and preparation of the consolidated financial statements and significant accounting policies | The assets’ residual values and useful lives are reviewed at the end of each reporting period, and adjusted on a prospective basis, if appropriate. Depreciation is calculated using the straight-line method, based on the estimated useful lives, as shown below: Data processing equipment (includes the POS devices) 2.5 to 5 years Building leasings 5 to 10 years Machinery and equipment 5 to 10 years Other assets 5 to 10 years During 2021, the Company reviewed the estimated useful lives of these assets and no significant change was identified. |
Consolidation of subsidiaries (
Consolidation of subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidation of subsidiaries [Abstract] | |
Consolidation of subsidiaries (Tables) | On December 31, 2021 Company Assets Liabilities Equity Net income (loss) Ownership - % Level PagSeguro Brazil 23,863,783 15,250,100 8,613,683 1,136,230 99.99 Direct BS Holding 545,693 7,019 538,674 84,032 99.99 Direct Pagseg 648,175 5,870 642,305 (51,550) 99.99 Direct PSHC 36 — 36 — 99.99 Direct Pagbank 180,053 9,385 170,668 (3,621) 99.99 Indirect Net+Phone 375,347 103,424 271,923 (35,806) 99.99 Indirect Boa Compra 456,934 243,905 213,029 14,271 99.99 Indirect BCPS 2,022 (52) 2,074 258 99.99 Indirect Biva SEC 1,446,640 1,439,545 7,095 6,728 99.99 Indirect Biva Serviços 42,901 5,653 37,248 5,965 99.99 Indirect Biva Corban 21,200 5,446 15,754 12,912 99.99 Indirect FIDC 4,770,455 816,980 3,953,475 2,294,655 100.00 Indirect TILIX 13,972 1,573 12,399 5,017 99.99 Indirect BancoSeguro 10,320,430 9,807,767 512,663 73,489 100.00 Indirect Yamí 2,087 861 1,226 267 99.99 Indirect Registra Seguro 5,000 9 4,991 (9) 99.99 Indirect CDS 10,057 5,583 4,474 (3,157) 99.99 Indirect Zygo 2,013 4,278 (2,265) (9,597) 99.99 Indirect Moip 787,659 596,429 191,230 10,070 100.00 Indirect Concil 2,390 3,080 (690) (2,832) 100.00 Indirect Pagseguro Chile 7 — 7 — 100.00 Indirect Pagseguro Colombia 28 — 28 — 100.00 Indirect PSGP México 1 — 1 — 100.00 Indirect Pagseguro Peru 13 — 13 — 100.00 Indirect On December 31, 2020 Company Assets Liabilities Equity Net income (loss) Ownership - % Level Pagseguro Brazil 20,089,735 11,716,120 8,373,615 1,238,345 99.99 Direct BS Holding 488,173 — 488,173 54,658 99.99 Direct Pagseg Participações 2 — 2 — 99.99 Direct Pagbank Participações 15,001 15,000 1 — 99.99 Indirect Net+Phone 340,829 33,100 307,729 (82,694) 99.99 Indirect Boa Compra 431,624 268,731 162,893 29,751 99.99 Indirect BCPS 2,410 476 1,934 (205) 99.50 Indirect R2TECH 12,511 1,639 10,872 8,864 99.99 Indirect BSEC 488,988 488,616 372 431 99.99 Indirect BIVACO 18,532 660 17,872 (193) 99.99 Indirect FIDC 3,422,207 327,070 3,095,137 1,903,304 100.00 Indirect TILIX 8,361 979 7,382 (6,240) 99.99 Indirect BancoSeguro 5,364,406 4,891,653 472,753 56,120 100.00 Indirect Yamí 1,453 489 964 834 99.99 Indirect Registra Seguro 5,000 — 5,000 (50) 99.99 Indirect CDS 4,724 1,073 3,651 (1,430) 99.99 Indirect Zygo 2,310 2,078 232 (1,652) 99.99 Indirect Moip 741,689 560,536 181,153 9,207 100.00 Indirect |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | December 31, 2021 December 31, 2020 Short-term bank deposits 569,816 415,387 Short-term investment 1,224,546 1,224,678 1,794,362 1,640,065 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable [Abstract] | |
Accounts receivable | December 31, 2021 December 31, 2020 Visa Master Hipercard Elo Amex Total Visa Master Hipercard Elo Total Legal obligors Itaú 1,333,263 2,045,133 757,306 — — 4,135,702 774,445 2,100,129 627,463 — 3,502,037 Bradesco 1,630,756 160,690 — 842,352 296,696 2,930,494 448,592 2,043,676 — — 2,492,268 Santander 818,937 1,464,314 — — 3,253 2,286,504 988,772 251,808 — 250,849 1,491,429 Nubank — 2,045,699 — — — 2,045,699 107,927 543,513 — — 651,440 Banco do Brasil 1,384,872 77,639 — 467,305 — 1,929,816 1,759,911 294,631 — 409,384 2,463,926 Banco Carrefour 121,398 744,030 — — — 865,428 407,688 87,882 — — 495,570 Banco Cooperativo Sicoob 216,047 633,590 — — — 849,637 — — — — — Porto Seguro 550,352 141,924 — — — 692,276 158,879 238,196 — 223,354 620,429 CEF 206,969 136,125 — 257,929 — 601,023 — 1,421,074 — — 1,421,074 Banco C6 — 481,017 — — — 481,017 — — — — — Banco Bradescard 362,978 91,016 — 9,368 — 463,362 — — — 2,874 2,874 Banco Inter — 407,601 — — — 407,601 — 684 — — 684 Other (iv) 1,890,701 2,088,484 — 215,378 770 4,195,333 702,021 1,212,651 — 95,200 2,009,872 Total card issuers (i) 8,516,273 10,517,262 757,306 1,792,332 300,719 21,883,892 5,348,235 8,194,244 627,463 981,661 15,151,603 Cielo – Elo — — — — — 42,662 — — — — 209,318 Getnet — — — — — 97,248 — — — — 56,799 Other — — — — — 11,716 — — — — 29,030 Total acquirers (ii) — — — — — 151,626 — — — — 295,147 Working capital loans — — — — — 1,069,671 — — — — 330,848 Working capital loans ECL — — — — — (256,927) — — — — (99,330) Credit card receivables — — — — — 726,095 — — — — 257,338 Credit card receivables ECL — — — — — (174,046) — — — — (55,728) Other credit initiatives — — — — — 110,050 — — — — 23,360 Other credit initiatives ECL — — — — — (6,166) — — — — — Total credit receivables (iii) — — — — — 1,468,677 — — — — 456,488 Current 1,239,797 422,918 Non – Current 228,880 33,570 Other accounts receivable — — — — — 156,700 — — — — 177,771 Other accounts receivable ECL (3,493) (4,470) Total accounts receivable 8,516,273 10,517,262 757,306 1,792,332 300,719 23,657,402 5,348,235 8,194,245 627,463 981,661 16,076,540 (i) Card issuers: receivables derived from transactions where PagSeguro Brazil acts as the financial intermediary in operations with the issuing banks, related to the intermediation agreements between PagSeguro Brazil and Visa, Mastercard, Hipercard, Amex or Elo. However, PagSeguro Brazil's contractual accounts receivable are with the financial institutions, which are the legal obligors on the accounts receivable payment. Additionally, amounts due within 27 days of the original transaction, including those that fall due with the first installment of installment receivables, are guaranteed by Visa, Mastercard, Hipercard, Amex or Elo, as applicable, if the legal obligors do not make the payment. (ii) Acquirers: refers to card processing transactions to be received from the acquirers, which are a third parties acting as financial intermediaries between the issuing bank and PagSeguro Brazil. (iii) The ECL (“expected credit losses”), are measured according to the IFRS 9. The provision rates are based on the internal credit rating that considers external information and are based on days past due. Every report date, PagSeguro reassesses the premises to adjust the historical credit loss experience with prospective information. (iv) Refers to other dispersed receivables from legal obligors. |
The maturity analysis of accounts receivable | The maturity analysis of accounts receivable is as follows: December 31, 2021 December 31, 2020 Past due after 91 days 155,495 72,152 Past due within 31 to 90 days 32,703 15,156 Past due within 30 days 25,445 10,337 Due within 30 days 4,214,521 7,013,196 Due within 31 to 120 days 12,033,372 6,129,039 Due within 121 to 180 days 3,457,830 1,509,449 Due within 181 to 360 days 3,808,539 1,453,167 Due after 360 days 370,128 33,570 Expected credit losses (440,631) (159,527) 23,657,402 16,076,540 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes Recoverable [Abstract] | |
Taxes Recoverable | 9. Taxes Recoverable December 31, 2021 December 31, 2020 Income tax and Social contribution (i) 294,955 223,057 Social integration program (ii) 167,701 151,165 Value-added tax on sales and services (iii) — 14,646 Other 6,834 107 469,490 388,975 (i) The increase is mainly related to withholding taxes from FIDC quotas redeemed in December 2021, amounted to R$409,084, representing withholding taxes of R$59,876 (ii) Refers to Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) recoverable on transaction activities and other services and purchase of POS devices. (iii) Refers to the Value-added Tax on Sales and Services (ICMS) due to purchases of POS devices, the decrease is related to tax impairment realized in December 2021, in the amount of R$24,476. |
Related-party balances and tr_2
Related-party balances and transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Payables transactions with related parties | Balances and transactions with related parties December 31, 2021 December 31, 2020 Payables Payables Immediate parent UOL – sales of services (a) 16,216 15,720 UOL – shared service costs (b) 19,093 12,539 UOL – deposits (c) 248,271 11,391 Affiliated companies UOL Edtech Tecnologia - Deposits (c) 229,250 — Compasso Informática S.A.(d) 12,853 — UOL Diveo – sales of services (d) 7,612 10,218 Transfolha Transportadora e Distribuição Ltda. — 1,933 Others 10,326 6,535 543,621 58,336 . (a) Sales of services refers mainly to the purchase of advertising services from UOL. (b) Shared services costs mainly related to payroll costs that are incurred by the parent company UOL and are charged to PagSeguro Group. (c) Certificate of deposits (CD) acquired by UOL and UOL Edtech from BancoSeguro with interest rate between 110% to 120% per year of CDI. The maturity analysis is as follows: December 31, 2021 December 31, 2020 Due within 61 to 180 days 193,592 11,391 Due within 181 to 360 days 283,929 — 477,521 11,391 (d) This payable refers mainly to colocation and cloud services. In 2020, these services were provided by UOL Diveo and since February 2021 these services are being provided by Compasso Informática S.A. |
Revenue expense transactions with related parties | For the year ended December 31, 2021 2020 2019 Revenue Expense Revenue Expense Revenue Expense Immediate parent UOL - shared service costs (a) — 141,915 — 134,277 — 161,650 UOL - sales of services (b) 3,221 92,664 2,878 80,820 2,520 57,480 UOL - deposits (c) — 3,797 — 2,970 — — Affiliated companies UOL Diveo - sales of services (d) — 2,887 — 49,665 — 36,790 Compasso Informática S.A.(d) — 102,912 — — — — Transfolha Transportadora e Distribuição Ltda. — 12,447 — 23,571 — 17,209 UOL Edtech Tecnologia (c) — 9,695 — — — — Others 1,013 4,082 603 2,926 35 1,035 4,234 370,399 3,481 294,229 2,555 274,164 (a) Shared services costs mainly related to payroll costs sharing that are incurred by the parent company UOL and are charged to PagSeguro. Such costs are included in administrative expenses. (b) Sale of services expenses is related to advertising services from UOL and revenue is related to intermediation fees. (c) Expenses are related to UOL and UOL Edtech purchase of BancoSeguro's Certificate of Deposits (CD). (d) Expenses related to colocation and cloud services. In 2020, these services were provided by UOL Diveo and since February, 2021 the same services are being provided by the affiliated company Compasso. The increase in 2021 relates to higher volume of cloud services due to the increase in active merchants and PagBank users. |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about business combination [abstract] | |
Purchase price allocation business combinations | The fair value of assets and liabilities acquired in 2021 (Concil) and 2020 (CDS, Zygo and Moip) were as follows: December 31, 2021 December 31, 2020 Fair value of assets and liabilities acquired Cash and cash equivalents 529 38,385 Accounts receivable acquired 540 537,570 Financial investments acquired — 177,772 Other Assets acquired 1,092 30,988 Payables to third parties assumed — (566,244) Liabilities assumed (4,020) (42,263) Customer portfolio, expenditures with software and others 45,763 58,506 Deferred taxes (12,891) (19,960) Contingency liability (7,848) — Value of net assets 23,165 214,754 Goodwill 20,731 154,234 Purchase cost 43,896 368,988 Consideration for the purchase settled in cash 35,000 315,287 Cash and cash equivalents at the subsidiary acquired (529) (38,385) Amount paid on acquisitions less cash and cash equivalents acquired 34,471 276,902 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Property and equipment | Property and equipment are composed as follows: December 31, 2021 Cost Accumulated depreciation Net Data processing equipment 106,643 (51,294) 55,349 Machinery and equipment (i) 2,798,823 (654,360) 2,144,463 Buildings Leasing 94,048 (26,928) 67,120 Other 29,909 (7,789) 22,120 Total 3,029,423 (740,371) 2,289,052 December 31, 2020 Cost Accumulated depreciation Net Data processing equipment 77,413 (35,572) 41,841 Machinery and equipment (i) 1,881,556 (204,154) 1,677,402 Buildings Leasing 79,890 (12,621) 67,269 Other 22,114 (6,013) 16,101 Total 2,060,973 (258,360) 1,802,613 Data processing equipment Machinery and equipment (i) Buildings Leasing (ii) Other Total Ont December 31, 2019 Cost 65,116 371,741 — 12,506 449,363 Accumulated depreciation (18,578) (28,512) — (2,283) (49,373) Net book value 46,538 343,229 — 10,223 399,990 On December 31, 2020 Opening balance 46,538 343,229 — 10,223 399,990 Cost 12,297 1,509,814 79,890 9,609 1,611,610 Purchases 10,820 1,519,278 79,717 3,789 1,613,604 Disposals (1,509) (9,838) (684) (74) (12,105) Acquisition of subsidiary 2,986 375 857 5,894 10,111 Depreciation (16,994) (175,641) (12,623) (3,729) (208,987) Depreciation (15,596) (175,805) (12,227) (1,000) (204,628) Disposals 21 264 — 17 302 Acquisition of subsidiary (1,419) (100) (396) (2,746) (4,661) Net book value 41,841 1,677,402 67,269 16,101 1,802,613 On December 31, 2020 Cost 77,413 1,881,556 79,890 22,114 2,060,973 Accumulated depreciation (35,572) (204,154) (12,621) (6,013) (258,360) Net book value 41,841 1,677,402 67,269 16,101 1,802,613 On December 31, 2021 Opening balance Cost 29,230 917,267 14,156 7,796 968,449 Purchases (ii) 29,940 931,859 15,013 10,478 987,290 Disposals (1,226) (14,601) (857) (2,902) (19,586) Acquisition of subsidiary 516 9 — 220 745 Depreciation (15,722) (450,206) (14,305) (1,777) (482,010) Depreciation (16,407) (453,593) (14,804) (3,137) (487,941) Disposals 1,063 3,389 499 1,445 6,396 Acquisition of subsidiary (378) (2) — (85) (465) Net book value 55,349 2,144,463 67,120 22,120 2,289,052 On December 31, 2021 Cost 106,643 2,798,823 94,048 29,909 3,029,423 Accumulated depreciation (51,294) (654,360) (26,928) (7,789) (740,371) Net book value 55,349 2,144,463 67,120 22,120 2,289,052 (i) Net book value of machinery and equipment are R$2,091,671 of POS devices. (R$1,635,782, as of December 31, 2020), which are depreciated over 5 years. The depreciation of POS in the year ended December 31, 2021, amounted to R$448,385 (R$172,519 in the year ended December 31, 2020). On December 31, 2021, PagSeguro have contractual obligations to acquire POS Devices in the amount of R$1,650,885 (R$1,386,324 on December 31, 2020). (ii) In January 2020, PagSeguro entered into a lease agreement until July 2026 and recorded in their financial statements, the office (right-of-use) in the amount of R$88,880, which was calculated considering the discount rate of 4.30% per year. For this leasing agreement, in 2021, PagSeguro agreed the annual lease adjustment of R$9,986. Additionally in May 2021, PagSeguro entered into another lease agreement until January 2024 and recorded in their financial statements, the office (right-of-use) in the amount of R$5,030, which was calculated considering the discount rate of 3.35% per year. Consequently, as of December 31, 2021, PagSeguro had a lease liability presented in other current liabilities in the amount of R$15,690 and as non-current liability in the amount of R$51,521. In 2021, the Company incurred in financial expenses related to these leases of R$21 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Changes in intangible assets and goodwill [abstract] | |
Intangible assets | Intangible assets are composed as follows: December 31, 2021 Cost Accumulated Net Expenditures related to software and technology (i) 2,016,541 (772,804) 1,243,737 Software licenses 196,854 (53,129) 143,725 Goodwill (ii) 209,908 — 209,908 Other 67,768 (14,962) 52,806 2,491,071 (840,895) 1,650,176 December 31, 2020 Cost Accumulated Net Expenditures related to software and technology (i) 1,319,061 (501,319) 817,742 Software licenses 103,256 (29,060) 74,196 Goodwill (ii) 169,667 — 169,667 Other 62,786 (771) 62,015 1,654,770 (531,150) 1,123,620 (i) The PagSeguro Group capitalizes expenses incurred with the development of platforms, which are amortized over their useful lives of approximately five years. (ii) The balances comprise the goodwill arising from the acquisition of the companies R2TECH, BIVA, BancoSeguro, Yamí, Zygo, Moip and Concil. |
Allocation of goodwill | The goodwill is allocated to the Cash Generating Units (CGUs) in each of the acquired companies that generated the goodwill and is demonstrated below: December 31, 2021 December 31, 2020 Moip 148,117 148,117 Concil 20,731 — Biva Serviços 14,627 — Bivaco Holding — 14,627 Banco Seguro 12,612 12,612 Boa Compra 6,570 — Zygo 5,768 5,768 R2Tech — 6,570 Yami 1,382 1,382 Total 209,806 189,075 |
The changes in cost and accumulated amortization | The changes in cost and accumulated amortization were as follows: Expenditures with software and technology Software licenses Goodwill Other Total On December 31, 2019 Cost 787,970 58,247 54,858 4,586 905,661 Accumulated amortization (302,031) (13,492) — (585) (316,108) Net book value 485,939 44,755 54,858 4,001 589,553 On December 31, 2020 485,939 44,755 54,858 4,001 589,553 Opening balance Cost 531,092 45,010 114,809 58,199 749,110 Additions (i) 485,608 42,138 134,274 58,633 720,653 Disposals (ii) (6,308) — (19,465) (447) (26,220) Acquisition of subsidiary (iii) 51,791 2,871 — 13 54,675 Amortization (199,289) (15,569) — (185) (215,043) Amortization (164,319) (15,153) — (180) (179,652) Disposals 2,667 — — — 2,667 Acquisition of subsidiary (iii) (37,636) (416) — (5) (38,056) Net book value 817,742 74,196 169,667 62,015 1,123,620 On December 31, 2020 Cost 1,319,061 103,256 169,667 62,786 1,654,770 Accumulated amortization (501,319) (29,060) — (771) (531,150) Net book value 817,742 74,196 169,667 62,015 1,123,620 On December 31, 2021 Cost 697,480 93,597 40,241 4,983 836,301 Additions (iv) 715,382 97,103 40,589 4,983 858,057 Disposals (18,167) (3,645) (348) — (22,160) Acquisition of subsidiary (iii) 265 139 — — 404 Amortization (271,485) (24,068) — (14,192) (309,745) Amortization (278,220) (24,290) — (14,192) (316,702) Disposals 6,735 222 — — 6,957 Net book value 1,243,737 143,725 209,908 52,806 1,650,176 On December 31, 2021 Cost 2,016,541 196,854 209,908 67,768 2,491,071 Accumulated amortization (772,804) (53,129) — (14,962) (840,895) Net book value 1,243,737 143,725 209,908 52,806 1,650,176 (i) Refers to pulverized expenditures with software and technology, mainly related to customer experience, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions, mainly related to MOIP and other is related to purchase price allocation of MOIP (customer portfolio). (ii) Goodwill disposals refers to goodwill recorded in prior years related to business combinations acquisitions. (iii) Relates to intangible assets from Concil acquired in 2021 and MOIP, ZYGO and CDS, which were acquired in 2020. (iv) Refers to pulverized expenditures with software and technology, mainly related to customer experience functionalities, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions related to Concil. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Deposits | December 31, 2021 2020 Certificate of Deposit(i) 2,510,818 604,916 Interbank deposits(ii) 404,998 — Corporate Securities(iii) 218,180 161,170 3,133,996 766,086 Current 3,056,444 571,996 Non-Current 77,552 194,090 (i) The average return is 163% of CDI (164% of CDI in December 2020). The increase is related to higher offer of CDBs products to the clients, considering this service began in 2020. (ii) The average return is 118% of CDI. (iii) The average return is 152% of CDI (158% of CDI in December 2020). The maturity analysis of deposits is as follows: December 31, 2021 December 31, 2020 Due within 30 days 646,232 5,231 Due within 31 to 120 days 1,029,936 77,812 Due within 121 to 180 days 313,008 53,000 Due within 181 to 360 days 1,067,268 435,952 Due to 361 days or more days 77,552 194,091 3,133,996 766,086 The changes in deposits were as follows: On December 31,2019 — Additions 892,754 Withdraws (130,459) Interest 3,791 On December 31,2020 766,086 Additions 4,929,953 Withdraws (2,667,612) Interest 105,596 On December 31,2021 3,133,996 |
Salaries and social charges (Ta
Salaries and social charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Salaries and social charges [Abstract] | |
Salaries and social charges | December 31, 2021 December 31, 2020 Profit sharing 75,076 29,401 Social charges 39,200 24,776 Payroll accruals 75,151 53,264 Payroll taxes (LTIP) (i) 61,359 62,293 Other 8,938 5,464 259,724 175,198 (i) Refers to social charges and income tax over LTIP and LTIP goals balances |
Taxes and contribuitions (Table
Taxes and contribuitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes and contributions [Abstract] | |
Taxes and contributions | December 31, 2021 December 31, 2020 Taxes Services tax and other (i) 171,902 157,066 Value-added tax on sales and services (ii) 117 29,678 Social integration program (iii) 26,832 24,984 Social contribution on revenues (iii) 164,330 153,626 Income tax and social contribution (iv) 31,865 6,336 Other 12,479 8,841 407,525 380,531 December 31, 2021 December 31, 2020 Judicial deposits (v) Services tax (i) (159,101) (150,121) Value-added tax on sales and services (ii) — (29,114) Social integration program (iii) (25,789) (24,498) Social contribution on revenues (iii) (158,701) (150,756) (343,591) (354,489) 63,934 26,042 (i) Refers to tax on revenues. (ii) In March 2021, there was a decision taken by Brazilian Supreme Court related to Value-added Tax on Sales and Services (ICMS), that beneficiated the Company. For this reason, the Company reversed the provision in the amount of R$29,114. Consequently, as the Company does not have this amount recorded in liability to make the offset with judicial deposits, the deposit is now being presented in the non-current assets as Judicial Deposits, until the withdrawal of these amounts. (iii) Refers mainly to Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) charged on financial income. (iv) Refers to the income tax and social contribution payable. |
Provision for contingencies (Ta
Provision for contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
Provision for contingencies civil and labor | December 31, 2021 December 31, 2020 Civil 33,343 23,238 Labor 18,387 13,598 51,730 36,836 Labor Deposits (10,167) (8,032) (10,167) (8,032) 41,563 28,804 Current 27,653 17,063 Non-Current 13,910 11,741 |
Income tax and social contribui
Income tax and social contribuition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and social contribution [Abstract] | |
Reconciliation of the deferred income tax and social contribution | Reconciliation of the deferred income tax and social contribution Tax losses Tax credit Technological innovation (i) Other temporary differences assets(ii) Other temporary differences liability (iii) Total Deferred tax On December 31, 2019 50,134 5,618 (161,211) 153,632 (679,123) (630,950) Included in the statement of income 17,446 (721) (117,073) 29,462 (348,666) (419,552) Other 1,259 — 313 (276) (94) 1,202 On December 31, 2020 68,839 4,897 (277,971) 182,818 (1,027,883) (1,049,300) Included in the statement of income (2,524) (5,084) (157,885) 170,895 (207,344) (201,942) Other 4,468 8,617 (93) (32,748) (19,756) On December 31, 2021 70,783 (187) (427,239) 353,620 (1,267,975) (1,270,998) Deferred tax asset 120,762 Deferred tax liability (1,391,760) (i) Refers to the benefit granted by the Technological Innovation Law (Lei do Bem), which reduces the tax charges on the capitalized amount intangible assets. (ii) The main other assets temporary difference refers to expected credit losses (note 8) and taxes and contributions (note 17). (iii) The main other liability temporary difference refers to gain on the ownership of FIDC quotas, that will be realized only in the redemption of such quotas. |
Reconciliation of the income tax and social contribution expense | The following is a reconciliation of the difference between the actual income tax and social contribution expense and the expense computed by applying the Brazilian federal statutory rate for years ended December 31, 2021, 2020 and 2019: For the year ended December 31, 2021 December 31, 2020 December 30, 2019 Profit for the year before taxes 1,488,027 1,774,691 1,912,539 Statutory rate 34 % 34 % 34 % Expected income tax and social contribution (505,929) (603,395) (650,263) Income tax and social contribution effect on: Permanent additions (exclusions) Gifts 704 (7,175) (814) R&D and technological innovation benefit(i) 187,207 134,247 86,665 Different tax rates (20,839) (6,316) 3,575 Unrecorded deferred taxes 14,625 — — Other additions 2,488 248 15,323 Income tax and social contribution expense (321,744) (482,391) (545,514) Effective rate 22 % 27 % 29 % Income tax and social contribution – current (119,801) (62,840) (24,471) Income tax and social contribution – deferred (201,942) (419,551) (521,043) (i) Refers to the benefit granted by the Technological Innovation Law ( Lei do Bem ), which reduces the income tax charges, based on the amount invested by the PagSeguro Group on specific intangible assets, see Note 13. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
Share capital | Share capital is composed of the following shares for the year ended December 31, 2021: December 31, 2019 shares outstanding 328,855,412 Treasury shares (350,006) Long-Term Incentive Plan 1,058,509 Repurchase of common shares (547,543) December 31, 2020 shares outstanding 329,016,372 Treasury shares 1,520,065 Long-Term Incentive Plan 758,024 Repurchase of common shares (1,686,235) December 31, 2021 shares outstanding 329,608,226 |
Treasury shares | Treasury shares are composed of the following shares for the year ended December 31, 2021, 2020: Shares Amount Average Price (US$) December 31, 2019 treasury shares 518,642 41,267 20.09 Repurchase of common shares 547,543 44,775 16.13 Long-Term Incentive Plan (897,549) (72,433) 18.06 December 31, 2020 treasury shares 168,636 13,609 18.06 Repurchase of common shares 1,686,235 284,812 30.23 Long-Term Incentive Plan (166,170) (13,410) 18.06 December 31, 2021 treasury shares 1,688,701 285,011 30.23 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Basic earnings per share | Basic earnings per share is calculated by dividing net income attributable to equity holders of PagSeguro Digital by the weighted average number of common shares issued and outstanding during the year ended December 31, 2021, 2020 and 2019: For the year ended December 31, 2021 2020 2019 Profit attributable to stockholders of the Company 1,166,102 1,291,658 1,365,597 Weighted average number of outstanding common shares (thousands) 330,310,786 329,292,240 328,169,609 Basic earnings per share - R$ 3.5303 3.9225 4.1613 |
Diluted earnings per share | Diluted earnings per share is calculated by dividing net income attributable to equity holders of PagSeguro Digital by the weighted average number of common shares outstanding during the year plus the weighted average number of common shares that would be issued on conversion of all dilutive potential common shares into common shares. The share in the LTIP are the only shares with potential dilutive effect. In this case, a calculation is done to determine the number of shares that could have been acquired at fair value. For the year ended December 31, 2021 2020 2019 Profit used to determine diluted earnings per share 1,166,102 1,291,658 1,365,597 Weighted average number of outstanding common shares (thousands) 330,310,786 329,292,240 328,169,609 Weighted average number of shares that would have been issued at average market price 1,864,038 521,937 1,090,047 Weighted average number of common shares for diluted earnings per share (thousands) 332,174,824 329,814,177 329,259,656 Diluted earnings per share - R$ 3.5105 3.9163 4.1475 |
Total revenue and income (Table
Total revenue and income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue and income [Abstract] | |
Total revenue and income | 23. Total revenue and income For the year ended December 31, 2021 2020 2019 Gross revenue from transaction activities and other services (i) 7,574,728 5,059,464 3,862,627 Gross revenue from sales (ii) — — 243,728 Gross financial income (iii) 3,587,823 2,193,961 2,054,430 Other financial income (iv) 149,491 128,595 126,404 Total gross revenue and income 11,312,042 7,382,020 6,287,189 Deductions from gross revenue from transactions activities and other (789,922) (550,744) (486,559) Deductions from gross revenue from sales (ii) — — (69,502) Deductions from gross financial income (vi) (73,398) (16,603) (23,919) Total deductions from gross revenue and income (863,320) (567,347) (579,980) Total revenue and income 10,448,722 6,814,673 5,707,209 (i) In the year ended December 31, 2021, R$268,931 corresponds to membership fee (R$140,803 in the year ended December 31, 2020). (ii) On September 1st, 2019, the Company changed its POS police to merchants from sale to membership fee. (iii) Includes interest income from early payment of notes payable to third parties. (iv) Includes (a) interest of financial investments and (b) gain on exchange variation. (v) Deductions consist of transactions taxes. Additionally, in the year ended December 31, 2021, R$24,876 (R$13,314 in the year ended December 31, 2020) correspond to membership fee taxes. (vi) Deductions consist of taxes on financial income. |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature [Abstract] | |
Expenses by nature | For the year ended December 31, 2021 2020 2019 Transactions costs (i) (4,321,135) (2,773,436) (1,815,374) Cost of goods sold (ii) — — (463,293) Marketing and advertising (791,134) (510,840) (476,466) Personnel expenses (iii) (1,074,249) (619,137) (399,104) Financial expenses (iv) (790,635) (109,232) (38,138) Chargebacks and ECL (v) (664,268) (288,309) (200,633) Depreciation and amortization (vii) (768,593) (376,335) (128,348) Other (vi) (550,681) (362,693) (273,314) (8,960,695) (5,039,982) (3,794,670) Classified as: Cost of services (5,775,895) (3,772,298) (2,236,066) Cost of sales — — (526,021) Selling expenses (1,523,908) (617,463) (565,170) Administrative expenses (877,559) (563,893) (427,366) Financial expenses (790,635) (109,232) (38,138) Other income (expenses), net 7,302 22,904 (1,909) (8,960,695) (5,039,982) (3,794,670) (i) The increase is mainly represented by (i) costs related to freight, maintenance of POS and storage costs in the amount R$242,834 for year ended December 31, 2021 (R$212,813 and R$120,870 for years ended December 31, 2020 and 2019), (ii) costs related to interchange fees of card issuers were the amount of R$3,043,591 for the year ended December 31, 2021 (R$1,680,441 and R$1,390,600 for years ended December 31, 2020 and 2019), (iii) card scheme fees in the amount of R$653,224 for the year ended December 31, 2021 (R$432,361 and R$292,629 for years ended December 31,2020 and 2019) and (iv) in 2021, PagSeguro had a cost of R$117,547 related to PagPhone net realizable value and obsolescence adjustment. (ii) On September 1st, 2019, the Company changed its POS police to merchants from sale to membership fee. (iii) Includes R$370,629, R$207,012 and R$156,273 of compensation expenses related to the LTIP and LTIP goals for the years ended December 31, 2021, 2020 and 2019, respectively. The increase in personnel expenses is mainly related to the LTIP and LTIP goals expenses and Hubs’ workforce expansion. (iv) Relates mainly to the early collection of receivables, which amounted to R$426,992 in the year ended December 31, 2021 (R$49,204 and R$20,570 in the years ended December 31, 2020 and 2019). The remaining increase is related to expenses with higher amount of interests on deposits due to the increase of Brazilian interest rates and exchange rate in foreign currency. (v) Chargebacks refer to losses recognized during the period related to card processing operations (acquiring and issuing), losses on digital accounts and provision for delinquency rate of credit portfolio, as detailed in Note 26. In the first quarter of 2021, the amount of R$73,356 is represented by inappropriate use of a system functionality implemented in the past, allowing unappropriated transactions by digital accounts customers and unexpected chargebacks on digital account losses for specific group of customers with higher credit risk for a new product. For all these facts, the corresponding root cause was identified and appropriately addressed by PagSeguro management, and there were no losses from these matters in second and third quarters of 2021. Additionally, the increase is related to credit initiatives ECLs as detailed in note 8.. (vi) In the year ended December 31, 2021, includes R$29,114 related to the reversal in the tax payable as detailed in Note 17 and R$24,476 related to an impairment of tax recoverable as detailed in Note 9. In the year ended December 31, 2020, includes R$84,294 related to the reversal of taxation of PIS/COFINS on financial income. (vii) Depreciation and amortization amounts incurred in the period are segregated between costs and expenses as presented below: |
Depreciation and amortization | For the year ended December 31, 2021 2020 2019 Depreciation Cost of sales and services (i) (464,411) (187,284) (33,421) Selling expenses (89) (25) (28) Administrative expenses (23,439) (17,319) (4,421) (487,939) (204,628) (37,870) Amortization Cost of sales and services (295,218) (174,943) (97,765) Administrative expenses (21,484) (4,709) (1,892) (316,702) (179,652) (99,657) PIS and COFINS credits (ii) 36,048 7,945 9,179 Depreciation and amortization expense, net (768,593) (376,335) (128,348) (i) The depreciation of POS in the year ended December 31, 2021, amounted to R$448,385 ( R$172,519 in the year ended December 31, 2020). (ii) PagSeguro Brazil has a tax benefit on PIS and COFINS that allows it to reduce the depreciation and amortization over some operational expenses when incurred. This tax benefit is recognized directly as a reduction of depreciation and amortization expense. |
Financial instruments by cate_2
Financial instruments by category (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments by category [Abstract] | |
Disclosure of financial assets | The PagSeguro Group classifies its financial instruments into the following categories: December 31, 2021 December 31, 2020 Financial assets Amortized cost: Cash and cash equivalents 1,794,362 1,640,065 Accounts receivables 23,657,402 16,076,540 Other receivables 206,486 164,805 Judicial deposits 40,224 7,449 Investment 1,406 1,400 Fair value through other comprehensive income Financial investments 782,647 979,837 26,482,527 18,870,096 December 31, 2021 December 31, 2020 Financial liabilities Amortized cost: Payables to third parties 13,217,150 10,101,510 Trade payables 578,004 335,539 Trade payables to related parties 543,621 58,336 Deposits 3,133,996 766,086 Borrowings 1,005,787 — Deferred revenue 179,866 213,555 Other liabilities 143,884 159,198 Fair value through profit or loss Derivative financial instruments 14,317 — 18,816,625 11,634,224 |
Disclosure of financial liabilities | The PagSeguro Group classifies its financial instruments into the following categories: December 31, 2021 December 31, 2020 Financial assets Amortized cost: Cash and cash equivalents 1,794,362 1,640,065 Accounts receivables 23,657,402 16,076,540 Other receivables 206,486 164,805 Judicial deposits 40,224 7,449 Investment 1,406 1,400 Fair value through other comprehensive income Financial investments 782,647 979,837 26,482,527 18,870,096 December 31, 2021 December 31, 2020 Financial liabilities Amortized cost: Payables to third parties 13,217,150 10,101,510 Trade payables 578,004 335,539 Trade payables to related parties 543,621 58,336 Deposits 3,133,996 766,086 Borrowings 1,005,787 — Deferred revenue 179,866 213,555 Other liabilities 143,884 159,198 Fair value through profit or loss Derivative financial instruments 14,317 — 18,816,625 11,634,224 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial risk management [Abstract] | |
Sensitivity analysis for interest rate risk | The Group's exposure to the risk of changes in market interest rates arises primarily from financial investments and deposits both subject to variable interest rates, principally the CDI rate. The Group conducted a sensitivity analysis of the interest rate risks to which the financial instruments are exposed as of December 31, 2021. For this analysis, the Group adopted as a probable scenario for 2022 interest rates of 11.5% for the CDI (increase of 25%). As a result, financial income (with respect to financial investments) and financial expense (with respect to certificate of deposit, corporate securities and borrowings) would be impacted as follows: Transaction Interest rate risk Book Value Scenario with maintaining of CDI (9.15%) Probable scenario with increase of 25% (to 11.5%) Cash and cash equivalents 100% of CDI 1,794,362 164,184 206,352 Financial investments 100% of CDI 782,647 71,612 90,004 Certificate of deposit 163% of CDI 2,510,818 (374,476) (470,653) Interbank deposits 118% of CDI 404,998 (43,728) (54,958) Corporate securities 152% of CDI 218,180 (30,345 (38,138) Bank accounts (note 14) 59% of CDI 5,167,577 (278,972) (350,620) Borrowings 109% of CDI 1,005,787 (100,312) (126,075) Total (592,037) (744,088) |
Disclosure of foreign exchange risk | Our exchange income (expense), are demonstrated below: December 31 2021 December 31, 2020 Exchange variation on P&L, net (10,645) 55,217 |
Disclosure of maturity analysis for non-derivative financial liabilities | The table below shows the PagSeguro Group’s non-derivative financial liabilities divided into the relevant maturity group based on the remaining period from the balance sheet date and the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Due within 30 days Due within 31 to 120 days Due within 121 to 180 days Due within 181 to 360 days Due to 361 days or more days On December 31, 2021 Payables to third parties 10,415,882 1,770,271 504,444 526,553 — Trade payables 573,570 4,339 95 — — Trade payables to related parties — 259,216 5,691 323,203 — Deposits 655,289 1,073,239 334,942 1,201,888 90,595 Borrowings — — — 1,114,211 — On December 31, 2020 Payables to third parties 8,348,127 1,146,136 300,058 299,645 7,544 Trade payables 332,733 2,806 — — — Trade payables to related parties — 46,945 5,132 6,438 — Deposits 5,231 77,812 53,000 435,952 194,091 |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital management [Abstract] | |
Schedul of capital management [Table Text Block] | December 31, 2021 Borrowings 1,005,787 (-) Cash and cash equivalents (1,794,362) Net debt (788,575) Total equity 10,502,198 Total capital 9,713,623 Gearing ratio (8.1) % |
Non-cash Transactions (Tables)
Non-cash Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Non-cash Transactions [Abstract] | |
Non-cash Transactions | For the year ended December 31, 2021 2020 2019 Non-cash operation activities Distribution of LTIP with treasury shares 13,410 72,433 — Transfer of POS from inventory to property and equipment — — (42,429) Non-cash investing activities Property and equipment acquired through lease 15,016 79,031 — MTM of financial investments 271 (278) (28) Income taxes on the fair value of acquired assets 32,748 — — Unpaid consideration for acquisition 8,896 68,701 1,961 Non-cash financing activities Unpaid consideration for acquisition of non-controlling shares — — 1,574 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair value measurement [Abstract] | |
Disclosure of fair value measurement of assets | The following table provides the fair value measurement hierarchy of PagSeguro Group’s financial assets and financial liabilities as of December 31, 2021: December 31, 2021 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 446,322 1,348,040 — Financial investments 782,647 — — Accounts receivable — 23,657,402 — Other receivables — 206,486 — Judicial deposits — 40,224 — Investment — — 1,406 Financial liabilities Payables to third parties — 13,217,150 — Trade payables — 578,004 — Trade payables to related parties — 543,621 — Deposits — 3,133,996 — Borrowings — 1,005,787 — Derivative financial instruments — 14,317 — Deferred revenue — 179,866 — Other liabilities — 143,884 — December 31, 2020 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 321,674 1,318,391 — Financial investments 979,837 — — Accounts receivable — 16,076,540 — Other receivables — 164,805 — Judicial deposits — 7,449 — Investment — — 1,400 Financial liabilities Payables to third parties — 10,101,510 — Trade payables — 335,539 — Trade payables to related parties — 58,336 — Deposits — 766,086 — Deferred revenue — 213,555 — Other liabilities — 159,198 — |
Disclosure of fair value measurement of liabilities | The following table provides the fair value measurement hierarchy of PagSeguro Group’s financial assets and financial liabilities as of December 31, 2021: December 31, 2021 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 446,322 1,348,040 — Financial investments 782,647 — — Accounts receivable — 23,657,402 — Other receivables — 206,486 — Judicial deposits — 40,224 — Investment — — 1,406 Financial liabilities Payables to third parties — 13,217,150 — Trade payables — 578,004 — Trade payables to related parties — 543,621 — Deposits — 3,133,996 — Borrowings — 1,005,787 — Derivative financial instruments — 14,317 — Deferred revenue — 179,866 — Other liabilities — 143,884 — December 31, 2020 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents 321,674 1,318,391 — Financial investments 979,837 — — Accounts receivable — 16,076,540 — Other receivables — 164,805 — Judicial deposits — 7,449 — Investment — — 1,400 Financial liabilities Payables to third parties — 10,101,510 — Trade payables — 335,539 — Trade payables to related parties — 58,336 — Deposits — 766,086 — Deferred revenue — 213,555 — Other liabilities — 159,198 — |
Accounting policies, changes _4
Accounting policies, changes in accounting estimates and errors (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2021 | Jan. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |||||
Right-of-use assets | R$ 5030 | R$ 88880 | |||
Discount rate (percent) | 3.35% | 4.30% | |||
Current lease liabilities | R$ 15690 | ||||
Non-current lease liabilities | 51,521 | ||||
Interest expense on lease liabilities | R$ 21 | ||||
Useful life measured as period of time, property, plant and equipment | 5 years | ||||
Software licenses | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Intagible assets with useful life defined | 5 years | 5 years | 3 years | ||
Minimum | Data processing equipment | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 2 years 6 months | ||||
Minimum | Machinery and equipment | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 5 years | ||||
Minimum | Other assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 5 years | ||||
Maximum | Data processing equipment | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 5 years | ||||
Maximum | Machinery and equipment | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 10 years | ||||
Maximum | Other assets [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Useful life measured as period of time, property, plant and equipment | 10 years |
General Information (Details)
General Information (Details) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021subsidiary | Dec. 31, 2021 | Aug. 12, 2021 | Jan. 04, 2021BRL (R$) | Dec. 30, 2020 | Jul. 04, 2018 | |
General Information [Abstract] | ||||||
Pag Seguro digital has control of the shares Pag Seguro Brazil | 99.99% | |||||
Number of new subsidiaries established | subsidiary | 4 | |||||
Consolidated Assets | ||||||
General Information [Abstract] | ||||||
Concentration risk percentage | 0.03 | |||||
Consolidated Revenue | ||||||
General Information [Abstract] | ||||||
Concentration risk percentage | 0.02 | |||||
Consolidated Net Income | ||||||
General Information [Abstract] | ||||||
Concentration risk percentage | 0.01 | |||||
BoletoFlex Tecnologia e Serviços LTDA. ("BoletoFlex") | ||||||
General Information [Abstract] | ||||||
Percentage of voting equity interests acquired | 20.00% | |||||
Cash transferred | R$ | R$ 15000000 | |||||
Concil | ||||||
General Information [Abstract] | ||||||
Percentage of voting equity interests acquired | 100.00% |
Presentation and preparation _3
Presentation and preparation of the consolidated financial statements and significant accounting policies (Details Text) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Software licenses | |||
Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies (Details Text) [Abstract] | |||
Intagible assets with useful life defined | 5 years | 5 years | 3 years |
Income Tax [Member] | |||
Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies (Details Text) [Abstract] | |||
Currently defined tax rates | 25.00% | ||
Income Tax [Member] | Banco Seguro | |||
Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies (Details Text) [Abstract] | |||
Currently defined tax rates | 25.00% | ||
Social contribution [Member] | |||
Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies (Details Text) [Abstract] | |||
Currently defined tax rates | 9.00% | ||
Social contribution [Member] | Banco Seguro | |||
Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies (Details Text) [Abstract] | |||
Currently defined tax rates | 25.00% |
Accounting estimates and judg_2
Accounting estimates and judgments (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting estimates and judgments [Abstract] | |
Deferred income tax and social contribution based on future taxable profit estimates | 10 years |
Consolidation of subsidiaries_2
Consolidation of subsidiaries (Details) - BRL (R$) | Dec. 31, 2021 | Aug. 12, 2021 | Oct. 31, 2020 | Aug. 31, 2020 | Aug. 09, 2019 | Dec. 05, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 02, 2019 | Dec. 31, 2018 |
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 31075804000 | R$ 31075804000 | R$ 22324322000 | ||||||||
Liabilities | (20,573,606,000) | (20,573,606,000) | (12,996,863,000) | ||||||||
Total equity | 10,502,198,000 | 10,502,198,000 | 9,327,459,000 | R$ 8014948000 | R$ 6574376000 | ||||||
Currency translation adjustment | 1,166,284,000 | 1,292,300,000 | R$ 1367025000 | ||||||||
PagSeguro Brazil [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 23,863,783,000 | 23,863,783,000 | 20,089,735,000 | ||||||||
Liabilities | (15,250,100,000) | (15,250,100,000) | (11,716,120,000) | ||||||||
Total equity | 8,613,683,000 | 8,613,683,000 | 8,373,615,000 | ||||||||
Currency translation adjustment | R$ 1136230000 | R$ 1238345000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Direct | Direct | |||||||||
BS Holding [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 545,693,000 | R$ 545693000 | R$ 488173000 | ||||||||
Liabilities | (7,019,000) | (7,019,000) | 0 | ||||||||
Total equity | 538,674,000 | 538,674,000 | 488,173,000 | ||||||||
Currency translation adjustment | R$ 84032000 | R$ 54658000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Direct | Direct | |||||||||
Pagseg [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 648,175,000 | R$ 648175000 | |||||||||
Liabilities | (5,870,000) | (5,870,000) | |||||||||
Total equity | 642,305,000 | 642,305,000 | |||||||||
Currency translation adjustment | R$ 51550000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Direct | ||||||||||
PSHC [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 36,000 | R$ 36000 | |||||||||
Liabilities | 0 | 0 | |||||||||
Total equity | 36,000 | 36,000 | |||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Direct | ||||||||||
Pagseg Participacoes [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 2000 | ||||||||||
Liabilities | 0 | ||||||||||
Total equity | 2,000 | ||||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Direct | ||||||||||
Pagbank [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 180,053,000 | R$ 180053000 | |||||||||
Liabilities | (9,385,000) | (9,385,000) | |||||||||
Total equity | 170,668,000 | 170,668,000 | |||||||||
Currency translation adjustment | R$ 3621000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
Pagbank Participacoes [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 15001000 | ||||||||||
Liabilities | (15,000,000) | ||||||||||
Total equity | 1,000 | ||||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
Net+Phone [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 375,347,000 | R$ 375347000 | R$ 340829000 | ||||||||
Liabilities | (103,424,000) | (103,424,000) | (33,100,000) | ||||||||
Total equity | 271,923,000 | 271,923,000 | 307,729,000 | ||||||||
Currency translation adjustment | R$ 35806000 | R$ 82694000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Indirect | Indirect | |||||||||
Boa Compra | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 456,934,000 | R$ 456934000 | R$ 431624000 | ||||||||
Liabilities | (243,905,000) | (243,905,000) | (268,731,000) | ||||||||
Total equity | 213,029,000 | 213,029,000 | 162,893,000 | ||||||||
Currency translation adjustment | R$ 14271000 | R$ 29751000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Indirect | Indirect | |||||||||
BCPS [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 2,022,000 | R$ 2022000 | R$ 2410000 | ||||||||
Liabilities | (52,000) | (52,000) | (476,000) | ||||||||
Total equity | 2,074,000 | 2,074,000 | 1,934,000 | ||||||||
Currency translation adjustment | R$ 258000 | R$ 205000 | |||||||||
Ownership interest acquired | 99.99% | 99.50% | |||||||||
Level | Indirect | Indirect | |||||||||
Biva SEC [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 1,446,640,000 | R$ 1446640000 | |||||||||
Liabilities | (1,439,545,000) | (1,439,545,000) | |||||||||
Total equity | 7,095,000 | 7,095,000 | |||||||||
Currency translation adjustment | R$ 6728000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
Biva Serviços | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 42,901,000 | R$ 42901000 | |||||||||
Liabilities | (5,653,000) | (5,653,000) | |||||||||
Total equity | 37,248,000 | 37,248,000 | |||||||||
Currency translation adjustment | R$ 5965000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
Biva Corban | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 21,200,000 | R$ 21200000 | |||||||||
Liabilities | (5,446,000) | (5,446,000) | |||||||||
Total equity | 15,754,000 | 15,754,000 | |||||||||
Currency translation adjustment | R$ 12912000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
R2Tech | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 12511000 | ||||||||||
Liabilities | (1,639,000) | ||||||||||
Total equity | 10,872,000 | ||||||||||
Currency translation adjustment | R$ 8864000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
BSEC [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 488988000 | ||||||||||
Liabilities | (488,616,000) | ||||||||||
Total equity | 372,000 | ||||||||||
Currency translation adjustment | R$ 431000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
BIVA [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 18532000 | ||||||||||
Liabilities | (660,000) | ||||||||||
Total equity | 17,872,000 | ||||||||||
Currency translation adjustment | R$ 193000 | ||||||||||
Ownership interest acquired | 99.99% | ||||||||||
Level | Indirect | ||||||||||
FIDC [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 4,770,455,000 | R$ 4770455000 | R$ 3422207000 | ||||||||
Liabilities | (816,980,000) | (816,980,000) | (327,070,000) | ||||||||
Total equity | R$ 3953475000 | 3,953,475,000 | 3,095,137,000 | ||||||||
Currency translation adjustment | R$ 2294655000 | R$ 1903304000 | |||||||||
Ownership interest acquired | 100.00% | 100.00% | 100.00% | ||||||||
Level | Indirect | Indirect | |||||||||
TILIX [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | R$ 13972000 | R$ 13972000 | R$ 8361000 | ||||||||
Liabilities | (1,573,000) | (1,573,000) | (979,000) | ||||||||
Total equity | 12,399,000 | 12,399,000 | 7,382,000 | ||||||||
Currency translation adjustment | R$ 5017000 | R$ 6240000 | |||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||
Level | Indirect | Indirect | |||||||||
Banco Seguro | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 10,320,430,000 | R$ 10320430000 | R$ 5364406000 | ||||||||
Liabilities | (9,807,767,000) | (9,807,767,000) | (4,891,653,000) | ||||||||
Total equity | 512,663,000 | 512,663,000 | 472,753,000 | ||||||||
Currency translation adjustment | R$ 73489000 | R$ 56120000 | |||||||||
Ownership interest acquired | 100.00% | 100.00% | |||||||||
Level | Indirect | Indirect | |||||||||
Yami [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 2,087,000 | R$ 2087000 | R$ 1453000 | ||||||||
Liabilities | (861,000) | (861,000) | (489,000) | ||||||||
Total equity | 1,226,000 | 1,226,000 | 964,000 | ||||||||
Currency translation adjustment | R$ 267000 | R$ 834000 | |||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||
Level | Indirect | Indirect | |||||||||
Registra Seguro [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 5,000,000 | R$ 5000000 | R$ 5000000 | ||||||||
Liabilities | (9,000) | (9,000) | 0 | ||||||||
Total equity | 4,991,000 | 4,991,000 | 5,000,000 | R$ 5000 | |||||||
Currency translation adjustment | R$ 9000 | R$ 50000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Indirect | Indirect | |||||||||
CDS | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 10,057,000 | R$ 10057000 | R$ 4724000 | ||||||||
Liabilities | (5,583,000) | (5,583,000) | (1,073,000) | ||||||||
Total equity | 4,474,000 | 4,474,000 | 3,651,000 | ||||||||
Currency translation adjustment | R$ 3157000 | R$ 1430000 | |||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||
Level | Indirect | Indirect | |||||||||
Zvgo [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 2,013,000 | R$ 2013000 | R$ 2310000 | ||||||||
Liabilities | (4,278,000) | (4,278,000) | (2,078,000) | ||||||||
Total equity | (2,265,000) | (2,265,000) | 232,000 | ||||||||
Currency translation adjustment | R$ 9597000 | R$ 1652000 | |||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||
Level | Indirect | Indirect | |||||||||
Moip | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 787,659,000 | R$ 787659000 | R$ 741689000 | ||||||||
Liabilities | (596,429,000) | (596,429,000) | (560,536,000) | ||||||||
Total equity | 191,230,000 | 191,230,000 | 181,153,000 | ||||||||
Currency translation adjustment | R$ 10070000 | R$ 9207000 | |||||||||
Ownership interest acquired | 100.00% | 100.00% | 100.00% | ||||||||
Level | Indirect | Indirect | |||||||||
Concil | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 2,390,000 | R$ 2390000 | |||||||||
Liabilities | (3,080,000) | (3,080,000) | |||||||||
Total equity | (690,000) | (690,000) | |||||||||
Currency translation adjustment | R$ 2832000 | ||||||||||
Ownership interest acquired | 100.00% | 100.00% | |||||||||
Level | Indirect | ||||||||||
Pagseguro Chile [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 7,000 | R$ 7000 | |||||||||
Liabilities | 0 | 0 | |||||||||
Total equity | 7,000 | 7,000 | |||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 100.00% | ||||||||||
Level | Indirect | ||||||||||
Pagseguro Colombia [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 28,000 | R$ 28000 | |||||||||
Liabilities | 0 | 0 | |||||||||
Total equity | 28,000 | 28,000 | |||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 100.00% | ||||||||||
Level | Indirect | ||||||||||
PSGP México [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 1,000 | R$ 1000 | |||||||||
Liabilities | 0 | 0 | |||||||||
Total equity | 1,000 | 1,000 | |||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 100.00% | ||||||||||
Level | Indirect | ||||||||||
Pagseguro Peru [Member] | |||||||||||
Consolidated operations [Line Items] | |||||||||||
Assets | 13,000 | R$ 13000 | |||||||||
Liabilities | 0 | 0 | |||||||||
Total equity | R$ 13000 | 13,000 | |||||||||
Currency translation adjustment | R$ 0 | ||||||||||
Ownership interest acquired | 100.00% | ||||||||||
Level | Indirect |
Consolidation of subsidiaries_3
Consolidation of subsidiaries (Details Text) | Dec. 31, 2021BRL (R$) | Dec. 27, 2021 | Aug. 12, 2021BRL (R$) | Oct. 31, 2020BRL (R$) | Aug. 31, 2020BRL (R$) | Jul. 23, 2020BRL (R$) | Aug. 09, 2019 | Jan. 04, 2019 | Dec. 05, 2018 | Sep. 30, 2021subsidiary | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Mar. 08, 2021BRL (R$) | Dec. 31, 2019BRL (R$) | Oct. 02, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Mar. 29, 2018BRL (R$) |
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 10502198000 | R$ 10502198000 | R$ 9327459000 | R$ 8014948000 | R$ 6574376000 | ||||||||||||
Investment | 15,666,000 | 15,666,000 | 16,400,000 | ||||||||||||||
Number of subsidiaries established | subsidiary | 4 | ||||||||||||||||
BCPS [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | 2,074,000 | R$ 2074000 | R$ 1934000 | ||||||||||||||
Ownership interest acquired | 99.99% | 99.50% | |||||||||||||||
R2Tech | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 10872000 | ||||||||||||||||
Ownership interest acquired | 99.99% | ||||||||||||||||
BIVA [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 17872000 | ||||||||||||||||
Ownership interest acquired | 99.99% | ||||||||||||||||
FIDC [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 3953475000 | R$ 3953475000 | R$ 3095137000 | ||||||||||||||
Proportion of ownership interest transferred | 15.00% | ||||||||||||||||
Ownership interest acquired | 100.00% | 100.00% | 100.00% | ||||||||||||||
FIDC [Member] | Third Party Investors [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 20000000 | ||||||||||||||||
TILIX [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 12399000 | R$ 12399000 | R$ 7382000 | ||||||||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||||||||
Yami [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | 1,226,000 | R$ 1226000 | R$ 964000 | ||||||||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||||||||
Registra Seguro [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | 4,991,000 | R$ 4991000 | R$ 5000000 | R$ 5000 | |||||||||||||
Ownership interest acquired | 99.99% | 99.99% | |||||||||||||||
CDS | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | 4,474,000 | R$ 4474000 | R$ 3651000 | ||||||||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||||||||||
Cash transferred | R$ 2379000 | ||||||||||||||||
Zygo | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Ownership interest acquired | 100.00% | ||||||||||||||||
Consideration paid (received) | R$ 8000000 | ||||||||||||||||
Cash transferred | R$ 5053000 | ||||||||||||||||
Moip | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | 191,230,000 | R$ 191230000 | R$ 181153000 | ||||||||||||||
Ownership interest acquired | 100.00% | 100.00% | 100.00% | ||||||||||||||
Consideration paid (received) | R$ 358609000 | ||||||||||||||||
Cash transferred | R$ 307855000 | R$ 32573000 | |||||||||||||||
BBN Banco Brasileiro de Negócios SA [Member] | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Ownership interest acquired | 100.00% | ||||||||||||||||
Concil | |||||||||||||||||
Consolidation of subsidiaries (Details Text) (Details) [Abstract] | |||||||||||||||||
Total equity | R$ 690000 | R$ 690000 | |||||||||||||||
Ownership interest acquired | 100.00% | 100.00% | |||||||||||||||
Consideration paid (received) | R$ 43896000 | ||||||||||||||||
Cash transferred | R$ 35000000 |
Segment reporting (Details)
Segment reporting (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment reporting (Details Text) [Abstract] | |||
Revenue arising, customers located abroad | 2.50% | 2.80% | 1.10% |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [abstract] | ||||
Short-term bank deposits | R$ 569816 | R$ 415387 | ||
Short-term investment | 1,224,546 | 1,224,678 | ||
Total cash and cash equivalents | R$ 1794362 | R$ 1640065 | R$ 1403955 | R$ 2763050 |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Text) | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | ||
Financial assets, average return percentage. | 100.00% | |
Interest rate percentage on short term investments. | 9.25% | 2.00% |
Financial investments (Details
Financial investments (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment [Line Items] | ||
Financial investments | R$ 782647 | R$ 979837 |
Financial assets, average return percentage. | 100.00% | |
Unrealized gains (losses) on investments | R$ 271 | R$ 278 |
Brazilian Treasury Bonds [Member] | ||
Investment [Line Items] | ||
Financial assets, average return percentage. | 100.00% | |
Brazilian Treasury Bonds [Member] | Selic Interest Rate | ||
Investment [Line Items] | ||
Financial Assets Interest Rate | 9.25% | 2.00% |
Accounts receivable (Details 1)
Accounts receivable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Legal obligors [Abstract] | ||
Accounts Receivables | R$ 23657402 | R$ 16076540 |
Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (4,135,702) | (3,502,037) |
Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,930,494) | (2,492,268) |
Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,286,504) | (1,491,429) |
Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,045,699) | (651,440) |
Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,929,816) | (2,463,926) |
Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (865,428) | (495,570) |
Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (849,637) | 0 |
Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (692,276) | (620,429) |
CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (601,023) | (1,421,074) |
Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (481,017) | 0 |
Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (463,362) | (2,874) |
Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (407,601) | (684) |
Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (4,195,333) | (2,009,872) |
Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (21,883,892) | (15,151,603) |
Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (42,662) | (209,318) |
Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (97,248) | (56,799) |
Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (11,716) | (29,030) |
Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (151,626) | (295,147) |
Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,069,671) | (330,848) |
Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (256,927) | (99,330) |
Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (726,095) | (257,338) |
Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (174,046) | (55,728) |
Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (110,050) | (23,360) |
Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (6,166) | 0 |
Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,468,677) | (456,488) |
Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,239,797) | (422,918) |
Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (228,880) | (33,570) |
Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (156,700) | (177,771) |
Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (3,493) | (4,470) |
Visa [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (8,516,273) | (5,348,235) |
Visa [Member] | Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,333,263) | (774,445) |
Visa [Member] | Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,630,756) | (448,592) |
Visa [Member] | Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (818,937) | (988,772) |
Visa [Member] | Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | (107,927) |
Visa [Member] | Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,384,872) | (1,759,911) |
Visa [Member] | Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (121,398) | (407,688) |
Visa [Member] | Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (216,047) | 0 |
Visa [Member] | Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (550,352) | (158,879) |
Visa [Member] | CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (206,969) | 0 |
Visa [Member] | Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (362,978) | 0 |
Visa [Member] | Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,890,701) | (702,021) |
Visa [Member] | Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (8,516,273) | (5,348,235) |
Visa [Member] | Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Visa [Member] | Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Visa [Member] | Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Visa [Member] | Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Master [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (10,517,262) | (8,194,245) |
Master [Member] | Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,045,133) | (2,100,129) |
Master [Member] | Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (160,690) | (2,043,676) |
Master [Member] | Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,464,314) | (251,808) |
Master [Member] | Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,045,699) | (543,513) |
Master [Member] | Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (77,639) | (294,631) |
Master [Member] | Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (744,030) | (87,882) |
Master [Member] | Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (633,590) | 0 |
Master [Member] | Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (141,924) | (238,196) |
Master [Member] | CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (136,125) | (1,421,074) |
Master [Member] | Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (481,017) | 0 |
Master [Member] | Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (91,016) | 0 |
Master [Member] | Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (407,601) | (684) |
Master [Member] | Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (2,088,484) | (1,212,651) |
Master [Member] | Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (10,517,262) | (8,194,244) |
Master [Member] | Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Master [Member] | Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Master [Member] | Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Master [Member] | Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Hipercard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (757,306) | (627,463) |
Hipercard [Member] | Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (757,306) | (627,463) |
Hipercard [Member] | Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (757,306) | (627,463) |
Hipercard [Member] | Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Hipercard [Member] | Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Hipercard [Member] | Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Hipercard [Member] | Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,792,332) | (981,661) |
Elo [Member] | Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (842,352) | 0 |
Elo [Member] | Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | (250,849) |
Elo [Member] | Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (467,305) | (409,384) |
Elo [Member] | Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | (223,354) |
Elo [Member] | CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (257,929) | 0 |
Elo [Member] | Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (9,368) | (2,874) |
Elo [Member] | Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (215,378) | (95,200) |
Elo [Member] | Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (1,792,332) | (981,661) |
Elo [Member] | Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Elo [Member] | Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Elo [Member] | Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | 0 |
Elo [Member] | Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Amex [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (300,719) | |
Amex [Member] | Itaú [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Bradesco [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (296,696) | |
Amex [Member] | Santander [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (3,253) | |
Amex [Member] | Nubank [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco do Brasil [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco Carrefour [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco Cooperativo Sicoob [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Porto Seguro [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | CEF [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco C6 [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco Bradescard [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Banco Inter [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Other (iv) | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (770) | |
Amex [Member] | Total card issuers [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | (300,719) | |
Amex [Member] | Cielo—Elo [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Getnet [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Other | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Total acquirers (ii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Working capital loans [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Working capital loans ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Credit card receivables [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Credit card receivables ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Other credit initiatives [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Other credit initiatives ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Total credit receivables (iii) [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Current [member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Amex [Member] | Non – Current | ||
Legal obligors [Abstract] | ||
Accounts Receivables | ||
Amex [Member] | Other accounts receivable [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables | 0 | |
Amex [Member] | Other accounts receivable ECL [Member] | ||
Legal obligors [Abstract] | ||
Accounts Receivables |
Accounts receivable (Details 2)
Accounts receivable (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | R$ 23657402 | R$ 16076540 |
Expected credit losses | (440,631) | (159,527) |
Past due after 91 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 155,495 | 72,152 |
Past due within 31 to 90 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 32,703 | 15,156 |
Past due within 30 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 25,445 | 10,337 |
Due within 30 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 4,214,521 | 7,013,196 |
Due within 31 to 120 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 12,033,372 | 6,129,039 |
Due within 121 to 180 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 3,457,830 | 1,509,449 |
Due within 181 to 360 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | 3,808,539 | 1,453,167 |
Due after 360 days | ||
Maturity analysis of note receivables [Abstract] | ||
Accounts Receivables | R$ 370128 | R$ 33570 |
Income taxes (Details)
Income taxes (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes Recoverable [Abstract] | ||
Income tax and Social contribution (i) | R$ 294955 | R$ 223057 |
Social integration program (ii) | 167,701 | 151,165 |
Value-added tax on sales and services (iii) | 0 | 14,646 |
Other | 6,834 | 107 |
Current tax assets | 469,490 | R$ 388975 |
FIDC quotas redeemed | 409,084 | |
FIDC quotas redeemed, withholding taxes | 59,876 | |
Impairment of tax recoverable | R$ 24476 |
Related-party balances and tr_3
Related-party balances and transactions (Details 1)(Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | R$ 543621 | R$ 58336 |
Bottom of range | ||
Disclosure of transactions between related parties [line items] | ||
Interest rate per year of CDI | 110.00% | |
Top of range | ||
Disclosure of transactions between related parties [line items] | ||
Interest rate per year of CDI | 120.00% | |
Immediate parent - UOL sales of service | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | R$ 16216 | 15,720 |
Immediate parent - UOL shared service costs | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 19,093 | 12,539 |
Immediate parent - UOL deposits | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 248,271 | 11,391 |
Affiliated companies - UOL Edtech Tecnologia - Deposits | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 229,250 | 0 |
Affiliated companies - Compasso Informatica S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 12,853 | 0 |
Affiliated companies - UOL Diveo sales of services | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 7,612 | 10,218 |
Affiliated companies - Transfolha Transpotadora e Distribuição Ltda | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 0 | 1,933 |
Affiliated Companies - Others | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 10,326 | 6,535 |
Total | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 543,621 | 58,336 |
UOL - Deposits and UOL Edtech Tecnologia - Deposits | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 477,521 | 11,391 |
UOL - Deposits and UOL Edtech Tecnologia - Deposits | Due within 61 to 180 Days | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | 193,592 | 11,391 |
UOL - Deposits and UOL Edtech Tecnologia - Deposits | Due within 181 to 360 days | ||
Disclosure of transactions between related parties [line items] | ||
Payables to related parties | R$ 283929 | R$ 0 |
Related-party balances and tr_4
Related-party balances and transactions (Details 2) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Immediate parent - UOL shared service costs | |||
Disclosure of transactions between related parties [line items] | |||
Expense | R$ 141915 | R$ 134277 | R$ 161650 |
Revenue | 0 | 0 | 0 |
Immediate parent - UOL sales of service | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 92,664 | 80,820 | 57,480 |
Revenue | 3,221 | 2,878 | 2,520 |
Immediate parent - UOL deposits | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 3,797 | 2,970 | 0 |
Revenue | 0 | 0 | 0 |
Affiliated companies - UOL Diveo sales of services | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 2,887 | 49,665 | 36,790 |
Revenue | 0 | 0 | 0 |
Affiliated companies - Compasso Informatica S.A. | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 102,912 | 0 | 0 |
Revenue | 0 | 0 | 0 |
Affiliated companies - Transfolha Transpotadora e Distribuição Ltda | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 12,447 | 23,571 | 17,209 |
Revenue | 0 | 0 | 0 |
Affiliated companies - UOL Edtech Tecnologia - Deposits | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 9,695 | 0 | 0 |
Revenue | 0 | 0 | 0 |
Affiliated Companies - Others | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 4,082 | 2,926 | 1,035 |
Revenue | 1,013 | 603 | 35 |
Total | |||
Disclosure of transactions between related parties [line items] | |||
Expense | 370,399 | 294,229 | 274,164 |
Revenue | R$ 4234 | R$ 3481 | R$ 2555 |
Related party balancesand trans
Related party balancesand transactions (Details 4 Text)(Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |||
Key management personnel compensation, short-term employee benefits | R$ 41198 | R$ 104568 | R$ 126749 |
Business combinations (Details
Business combinations (Details Text) - BRL (R$) | Aug. 12, 2021 | Oct. 31, 2020 | Aug. 31, 2020 | Jul. 23, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Jul. 31, 2021 | Mar. 08, 2021 |
Zygo | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Ownership interest acquired | 100.00% | ||||||||
Consideration paid (received) | R$ 8000000 | ||||||||
Value of net assets | 1,883,000 | ||||||||
Goodwill | R$ 5769000 | ||||||||
Cash transferred | 5,053,000 | ||||||||
Goodwill recognised as of acquisition date | R$ 6117000 | ||||||||
Zygo | Bottom of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Consideration transferrable, term | 3 years | ||||||||
Zygo | Top of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Consideration transferrable, term | 5 years | ||||||||
Zygo | Non-Compete Agreement and Software | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Intangible assets | R$ 348000 | ||||||||
CDS | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Ownership interest acquired | 100.00% | 99.99% | 99.99% | ||||||
Value of net assets | R$ 2379000 | ||||||||
Goodwill | 0 | ||||||||
Cash transferred | R$ 2379000 | ||||||||
Moip | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Ownership interest acquired | 100.00% | 100.00% | 100.00% | ||||||
Consideration paid (received) | R$ 358609000 | ||||||||
Value of net assets | 151,986,000 | ||||||||
Cash transferred | 307,855,000 | R$ 32573000 | |||||||
Consideration transferrable, term | 5 years | ||||||||
Liabilities incurred | R$ 18181000 | ||||||||
Goodwill recognised as of acquisition date | R$ 148117000 | ||||||||
Moip | Bottom of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Estimated GDP growth rate | 0.057 | ||||||||
Estimated discount rate based on WACC | 0.117 | ||||||||
Moip | Top of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Estimated GDP growth rate | 0.063 | ||||||||
Estimated discount rate based on WACC | 0.133 | ||||||||
Moip | Customer-related intangible assets [member] | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Intangible assets | R$ 58506000 | ||||||||
Concil | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Ownership interest acquired | 100.00% | 100.00% | |||||||
Consideration paid (received) | R$ 43896000 | ||||||||
Value of net assets | 23,165,000 | ||||||||
Goodwill | R$ 20731000 | ||||||||
Cash transferred | 35,000,000 | ||||||||
Liabilities incurred | R$ 8896000 | ||||||||
Contingent liabilities recognised as of acquisition date | 7,848,000 | ||||||||
Concil | Bottom of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Estimated GDP growth rate | 0.020 | ||||||||
Estimated discount rate based on WACC | 0.175 | ||||||||
Concil | Top of range | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Estimated GDP growth rate | 0.045 | ||||||||
Estimated discount rate based on WACC | 0.195 | ||||||||
Concil | Customer-related intangible assets [member] | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Intangible assets | 3,839,000 | ||||||||
Concil | Non-compete Agreements [Member] | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Intangible assets | 940,000 | ||||||||
Concil | Computer software [member] | |||||||||
Business combinations (Details Text) [Abstract] | |||||||||
Intangible assets | R$ 33136000 |
Business combinations (Details)
Business combinations (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
The assets and liabilities arising from the acquisition [Abstract] | |||
Amount paid on acquisitions less cash and cash equivalents acquired | R$ 43367 | R$ 345602 | R$ 17739 |
Concil | |||
The assets and liabilities arising from the acquisition [Abstract] | |||
Cash and cash equivalents | 529 | ||
Accounts receivable acquired | 540 | ||
Financial investments acquired | 0 | ||
Other Assets acquired | 1,092 | ||
Payables to third parties assumed | 0 | ||
Liabilities assumed | (4,020) | ||
Customer portfolio, expenditures with software and others | 45,763 | ||
Deferred taxes | (12,891) | ||
Contingency liability | (7,848) | ||
Value of net assets | 23,165 | ||
Goodwill | 20,731 | ||
Purchase cost | 43,896 | ||
Consideration for the purchase settled in cash | 35,000 | ||
Cash and cash equivalents at the subsidiary acquired | 529 | ||
Amount paid on acquisitions less cash and cash equivalents acquired | R$ 34471 | ||
CDS, Zygo and Moip | |||
The assets and liabilities arising from the acquisition [Abstract] | |||
Cash and cash equivalents | 38,385 | ||
Accounts receivable acquired | 537,570 | ||
Financial investments acquired | 177,772 | ||
Other Assets acquired | 30,988 | ||
Payables to third parties assumed | (566,244) | ||
Liabilities assumed | (42,263) | ||
Customer portfolio, expenditures with software and others | 58,506 | ||
Deferred taxes | (19,960) | ||
Contingency liability | 0 | ||
Value of net assets | 214,754 | ||
Goodwill | 154,234 | ||
Purchase cost | 368,988 | ||
Consideration for the purchase settled in cash | 315,287 | ||
Cash and cash equivalents at the subsidiary acquired | 38,385 | ||
Amount paid on acquisitions less cash and cash equivalents acquired | R$ 276902 |
Property, plant and equipment (
Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | R$ 2289052 | R$ 1802613 | R$ 399990 |
Document Information [Line Items] | |||
Depreciation | 448,385 | 172,519 | |
Data processing equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 55,349 | 41,841 | 46,538 |
Machinery and equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 2,144,463 | 1,677,402 | 343,229 |
Leasehold improvements | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 67,120 | 67,269 | 0 |
Other | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 22,120 | 16,101 | 10,223 |
Cost | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 3,029,423 | 2,060,973 | 449,363 |
Document Information [Line Items] | |||
Depreciation | 482,010 | 208,987 | |
Cost | Data processing equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 106,643 | 77,413 | 65,116 |
Document Information [Line Items] | |||
Depreciation | 15,722 | 16,994 | |
Cost | Machinery and equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 2,798,823 | 1,881,556 | 371,741 |
Document Information [Line Items] | |||
Depreciation | 450,206 | 175,641 | |
Cost | Leasehold improvements | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 94,048 | 79,890 | 0 |
Document Information [Line Items] | |||
Depreciation | 14,305 | 12,623 | |
Cost | Other | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | 29,909 | 22,114 | 12,506 |
Document Information [Line Items] | |||
Depreciation | 1,777 | 3,729 | |
Accumulated amortization | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | (740,371) | (258,360) | (49,373) |
Document Information [Line Items] | |||
Depreciation | 487,941 | 204,628 | |
Accumulated amortization | Data processing equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | (51,294) | (35,572) | (18,578) |
Document Information [Line Items] | |||
Depreciation | 16,407 | 15,596 | |
Accumulated amortization | Machinery and equipment | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | (654,360) | (204,154) | (28,512) |
Document Information [Line Items] | |||
Depreciation | 453,593 | 175,805 | |
Accumulated amortization | Leasehold improvements | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | (26,928) | (12,621) | 0 |
Document Information [Line Items] | |||
Depreciation | 14,804 | 12,227 | |
Accumulated amortization | Other | |||
Property And Equipment Is Composed As Follows Abstract | |||
Property and equipment | (7,789) | (6,013) | R$ 2283 |
Document Information [Line Items] | |||
Depreciation | R$ 3137 | R$ 1000 |
Property, plant and equipment_2
Property, plant and equipment (Details 1) (Parenthetical) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment [abstract] | ||
Net book value POS devices | R$ 2091671 | R$ 1635782 |
Property, plant and equipment_3
Property, plant and equipment (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | R$ 2289052 | R$ 1802613 | R$ 399990 |
Depreciation | (448,385) | (172,519) | |
Net book value | (2,289,052) | (1,802,613) | (399,990) |
Cost | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 3,029,423 | 2,060,973 | 449,363 |
Cost | 968,449 | 1,611,610 | |
Purchases | 987,290 | 1,613,604 | |
Disposals | (19,586) | (12,105) | |
Acquisition of subsidiary | 745 | 10,111 | |
Depreciation | (482,010) | (208,987) | |
Net book value | (3,029,423) | (2,060,973) | (449,363) |
Accumulated amortization | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | (740,371) | (258,360) | (49,373) |
Disposals | 6,396 | 302 | |
Acquisition of subsidiary | (465) | (4,661) | |
Depreciation | (487,941) | (204,628) | |
Net book value | 740,371 | 258,360 | 49,373 |
Data processing equipment | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 55,349 | 41,841 | 46,538 |
Net book value | (55,349) | (41,841) | (46,538) |
Data processing equipment | Cost | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 106,643 | 77,413 | 65,116 |
Cost | 29,230 | 12,297 | |
Purchases | 29,940 | 10,820 | |
Disposals | (1,226) | (1,509) | |
Acquisition of subsidiary | 516 | 2,986 | |
Depreciation | (15,722) | (16,994) | |
Net book value | (106,643) | (77,413) | (65,116) |
Data processing equipment | Accumulated amortization | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | (51,294) | (35,572) | (18,578) |
Disposals | 1,063 | 21 | |
Acquisition of subsidiary | (378) | (1,419) | |
Depreciation | (16,407) | (15,596) | |
Net book value | 51,294 | 35,572 | 18,578 |
Machinery and equipment | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 2,144,463 | 1,677,402 | 343,229 |
Net book value | (2,144,463) | (1,677,402) | (343,229) |
Machinery and equipment | Cost | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 2,798,823 | 1,881,556 | 371,741 |
Cost | 917,267 | 1,509,814 | |
Purchases | 931,859 | 1,519,278 | |
Disposals | (14,601) | (9,838) | |
Acquisition of subsidiary | 9 | 375 | |
Depreciation | (450,206) | (175,641) | |
Net book value | (2,798,823) | (1,881,556) | (371,741) |
Machinery and equipment | Accumulated amortization | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | (654,360) | (204,154) | (28,512) |
Disposals | 3,389 | 264 | |
Acquisition of subsidiary | (2) | (100) | |
Depreciation | (453,593) | (175,805) | |
Net book value | 654,360 | 204,154 | 28,512 |
Leasehold improvements | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 67,120 | 67,269 | 0 |
Net book value | (67,120) | (67,269) | 0 |
Leasehold improvements | Cost | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 94,048 | 79,890 | 0 |
Cost | 14,156 | 79,890 | |
Purchases | 15,013 | 79,717 | |
Disposals | (857) | (684) | |
Acquisition of subsidiary | 0 | 857 | |
Depreciation | (14,305) | (12,623) | |
Net book value | (94,048) | (79,890) | 0 |
Leasehold improvements | Accumulated amortization | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | (26,928) | (12,621) | 0 |
Disposals | 499 | 0 | |
Acquisition of subsidiary | 0 | (396) | |
Depreciation | (14,804) | (12,227) | |
Net book value | 26,928 | 12,621 | 0 |
Other | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 22,120 | 16,101 | 10,223 |
Net book value | (22,120) | (16,101) | (10,223) |
Other | Cost | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | 29,909 | 22,114 | 12,506 |
Cost | 7,796 | 9,609 | |
Purchases | 10,478 | 3,789 | |
Disposals | (2,902) | (74) | |
Acquisition of subsidiary | 220 | 5,894 | |
Depreciation | (1,777) | (3,729) | |
Net book value | (29,909) | (22,114) | (12,506) |
Other | Accumulated amortization | |||
Changes in cost and accumulated depreciation were as follows [Abstract] | |||
Property and equipment | (7,789) | (6,013) | (2,283) |
Disposals | 1,445 | 17 | |
Acquisition of subsidiary | (85) | (2,746) | |
Depreciation | (3,137) | (1,000) | |
Net book value | R$ 7789 | R$ 6013 | R$ 2283 |
Property, plant and equipment_4
Property, plant and equipment (Details 2) (Parenthetical) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2021 | Jan. 31, 2020 | |
Property, plant and equipment [abstract] | ||||
Net book value POS devices | R$ 2091671 | R$ 1635782 | ||
Useful life measured as period of time, property, plant and equipment | 5 years | |||
Depreciation | R$ 448385 | 172,519 | ||
Contractual obligations to acquire POS Devices | 1,650,885 | R$ 1386324 | ||
Right-of-use assets | R$ 5030 | R$ 88880 | ||
Discount rate (percent) | 3.35% | 4.30% | ||
Additions to right-of-use assets | 9,986 | |||
Current lease liabilities | 15,690 | |||
Non-current lease liabilities | 51,521 | |||
Interest expense on lease liabilities | R$ 21 |
Intangible assets (Details)
Intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | R$ 1650176 | R$ 1123620 | R$ 589553 |
Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 2,491,071 | 1,654,770 | 905,661 |
Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (840,895) | (531,150) | (316,108) |
Expenditures related to software and technology | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | R$ 1243737 | 817,742 | 485,939 |
Useful life | 5 years | ||
Expenditures related to software and technology | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | R$ 2016541 | 1,319,061 | 787,970 |
Expenditures related to software and technology | Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (772,804) | (501,319) | (302,031) |
Software licenses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 143,725 | 74,196 | 44,755 |
Software licenses | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 196,854 | 103,256 | 58,247 |
Software licenses | Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (53,129) | (29,060) | (13,492) |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 209,908 | 169,667 | 54,858 |
Goodwill | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 209,908 | 169,667 | 54,858 |
Goodwill | Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Other | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 52,806 | 62,015 | 4,001 |
Other | Cost | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 67,768 | 62,786 | 4,586 |
Other | Accumulated impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | R$ 14962 | R$ 771 | R$ 585 |
Intangible assets - Goodwill Al
Intangible assets - Goodwill Allocation (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of subsidiaries [line items] | ||
Goodwill | R$ 209806 | R$ 189075 |
Moip | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 148,117 | 148,117 |
Concil | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 20,731 | 0 |
Biva Serviços | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 14,627 | 0 |
Bivaco Holding | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 0 | 14,627 |
Banco Seguro | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 12,612 | 12,612 |
Boa Compra | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 6,570 | 0 |
Zygo | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 5,768 | 5,768 |
R2Tech | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | 0 | 6,570 |
Yami | ||
Disclosure of subsidiaries [line items] | ||
Goodwill | R$ 1382 | R$ 1382 |
Intangible assets - Narrative (
Intangible assets - Narrative (Details) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021BRL (R$) | |
Moip | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Goodwill | R$ 148117 | ||||
Estimated GDP growth rate | 0.0334 | ||||
Estimated inflation rates | 0.0301 | ||||
Estimated discount rate based on WACC | 0.13 | ||||
Moip | Forecast | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Estimated GDP growth rate | 0.0249 | 0.0244 | 0.0251 | ||
Estimated inflation rates | 0.0327 | 0.0333 | 0.0339 | ||
Other Acquisitions | Bottom of range | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Estimated discount rate based on WACC | 0.08 | ||||
Other Acquisitions | Top of range | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Estimated discount rate based on WACC | 0.13 | ||||
Other Acquisitions | Forecast | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Estimated GDP growth rate | 0.0245 | 0.0241 | 0.0228 | 0.0160 | |
Estimated inflation rates | 0.0314 | 0.0317 | 0.0334 | 0.0417 |
Intangible assets (Details 2)
Intangible assets (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | R$ 1650176 | R$ 1123620 | R$ 589553 |
Additions | 858,057 | 720,653 | |
Disposals | (22,160) | (26,220) | |
Acquisition of Subsidiary | 404 | 54,675 | |
Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Cost | 836,301 | 749,110 | |
Intangible assets and goodwill | 2,491,071 | 1,654,770 | 905,661 |
Amortization | (309,745) | (215,043) | |
Accumulated impairment [member] | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | (840,895) | (531,150) | (316,108) |
Disposals | 6,957 | 2,667 | |
Acquisition of Subsidiary | (38,056) | ||
Amortization | 316,702 | 179,652 | |
Expenditures related to software and technology | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | 1,243,737 | 817,742 | 485,939 |
Additions | 715,382 | 485,608 | |
Disposals | (18,167) | (6,308) | |
Acquisition of Subsidiary | 265 | 51,791 | |
Expenditures related to software and technology | Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Cost | 697,480 | 531,092 | |
Intangible assets and goodwill | 2,016,541 | 1,319,061 | 787,970 |
Amortization | (271,485) | (199,289) | |
Expenditures related to software and technology | Accumulated impairment [member] | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | (772,804) | (501,319) | (302,031) |
Disposals | 6,735 | 2,667 | |
Acquisition of Subsidiary | (37,636) | ||
Amortization | 278,220 | 164,319 | |
Software licenses | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | 143,725 | 74,196 | 44,755 |
Additions | 97,103 | 42,138 | |
Disposals | (3,645) | 0 | |
Acquisition of Subsidiary | 139 | 2,871 | |
Software licenses | Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Cost | 93,597 | 45,010 | |
Intangible assets and goodwill | 196,854 | 103,256 | 58,247 |
Amortization | (24,068) | (15,569) | |
Software licenses | Accumulated impairment [member] | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | (53,129) | (29,060) | (13,492) |
Disposals | 222 | 0 | |
Acquisition of Subsidiary | (416) | ||
Amortization | 24,290 | 15,153 | |
Goodwill | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | 209,908 | 169,667 | 54,858 |
Additions | 40,589 | 134,274 | |
Disposals | (348) | (19,465) | |
Acquisition of Subsidiary | 0 | 0 | |
Goodwill | Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Cost | 40,241 | 114,809 | |
Intangible assets and goodwill | 209,908 | 169,667 | 54,858 |
Amortization | 0 | 0 | |
Goodwill | Accumulated impairment [member] | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Disposals | 0 | 0 | |
Acquisition of Subsidiary | 0 | ||
Amortization | 0 | 0 | |
Other | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | 52,806 | 62,015 | 4,001 |
Additions | 4,983 | 58,633 | |
Disposals | 0 | (447) | |
Acquisition of Subsidiary | 0 | 13 | |
Other | Cost | |||
Reconciliation of changes in goodwill [abstract] | |||
Cost | 4,983 | 58,199 | |
Intangible assets and goodwill | 67,768 | 62,786 | 4,586 |
Amortization | (14,192) | (185) | |
Other | Accumulated impairment [member] | |||
Reconciliation of changes in goodwill [abstract] | |||
Intangible assets and goodwill | (14,962) | (771) | R$ 585 |
Disposals | 0 | 0 | |
Acquisition of Subsidiary | (5) | ||
Amortization | R$ 14192 | R$ 180 |
Payables to third parties (Deta
Payables to third parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Payables to third parties | R$ 13217150 | R$ 10101510 |
Transactions settled | 533,436 | 739,951 |
Balances maintained | R$ 5167577 | R$ 3566818 |
Average interest rate (as a percent of CDI) | 59.00% | 45.00% |
Maximum | ||
Statement [Line Items] | ||
Payables to third parties, average settlement terms | 14 days |
Deposits (Details 1)
Deposits (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | R$ 3133996 | R$ 766086 | R$ 0 |
Current | 3,056,444 | 571,996 | |
Non-Current | 77,552 | 194,090 | |
Due within 30 days | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | 646,232 | 5,231 | |
Due within 31 to 120 days | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | 1,029,936 | 77,812 | |
Due within 121 to 180 days | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | 313,008 | 53,000 | |
Due within 181 to 360 days | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | 1,067,268 | 435,952 | |
Due to 361 days or more days | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | 77,552 | 194,091 | |
Certificate of Deposit | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | R$ 2510818 | R$ 604916 | |
Basis of interest rate risk exposure to CDI (percent) | 163.00% | 164.00% | |
Interbank deposits | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | R$ 404998 | R$ 0 | |
Basis of interest rate risk exposure to CDI (percent) | 118.00% | ||
Corporate Securities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Deposits | R$ 218180 | R$ 161170 | |
Basis of interest rate risk exposure to CDI (percent) | 152.00% | 158.00% |
Deposits (Details 2)
Deposits (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Balance at beginning of period | R$ 766086 | R$ 0 |
Additions | 4,929,953 | 892,754 |
Withdraws | (2,667,612) | (130,459) |
Interest | 105,596 | 3,791 |
Balance at end of period | R$ 3133996 | R$ 766086 |
Salaries and social charges (De
Salaries and social charges (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Salaries and social charges [Abstract] | ||
Profit sharing | R$ 75076 | R$ 29401 |
Social charges | 39,200 | 24,776 |
Payroll accruals | 75,151 | 53,264 |
Payroll taxes (LTIP) | 61,359 | 62,293 |
Other | 8,938 | 5,464 |
Total | R$ 259724 | R$ 175198 |
Taxes and contribuitions (Detai
Taxes and contribuitions (Details) - BRL (R$) R$ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes | |||
Services tax | R$ 171902 | R$ 157066 | |
Value-added tax on sales and services | 117 | 29,678 | |
Social integration program | 26,832 | 24,984 | |
Social contribution on revenues | 164,330 | 153,626 | |
Income tax and social contribution | 31,865 | 6,336 | |
Other | 12,479 | 8,841 | |
Taxes Total | 407,525 | 380,531 | |
Judicial Deposits | |||
Services Tax | (159,101) | (150,121) | |
Value-Added Tax On Sales And Services | 0 | (29,114) | |
Social Integration Program | (25,789) | (24,498) | |
Social Contribution On Revenues | (158,701) | (150,756) | |
Judicial Deposits Total | (343,591) | (354,489) | |
Taxes and contribitions Total | 63,934 | R$ 26042 | |
Reversal of value-added tax on sales and services | R$ 29114 | R$ 29114 |
Provision for contingencies (De
Provision for contingencies (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current provisions [abstract] | ||
Civil | R$ 33343 | R$ 23238 |
Labor | 18,387 | 13,598 |
Provisions, Gross | 51,730 | 36,836 |
Labor Deposits | (10,167) | (8,032) |
Provisions | 41,563 | 28,804 |
Total current provisions | 27,653 | 17,063 |
Provision for contingencies | R$ 13910 | R$ 11741 |
Provision for contingencies (_2
Provision for contingencies (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
DisclosureOfMovementOfTheProvisionForContingenciesAbstract [Abstract] | ||
Beginning balance | R$ 28804 | R$ 11849 |
Accrual | 25,907 | 6,409 |
Acquisition of subsidiary | 11,446 | |
Settlement | (17,760) | (1,127) |
Interest | 4,610 | 227 |
Ending balance | R$ 41563 | R$ 28804 |
Provision for contingencies (_3
Provision for contingencies (Detils Text) (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Oct. 15, 2021 | Dec. 31, 2020 |
Disclosure of contingent liabilities [line items] | |||
Possible losses, for which no provision was recognized | R$ 504691 | R$ 165862 | |
Tax contingent liability | |||
Disclosure of contingent liabilities [line items] | |||
Possible losses, for which no provision was recognized | R$ 239812 | ||
Labor Contingent Liability | |||
Disclosure of contingent liabilities [line items] | |||
Possible losses, for which no provision was recognized | R$ 68534 |
Borrowing costs (Details)
Borrowing costs (Details) R$ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2021USD ($) | Dec. 31, 2021BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, term | 1 year | |
Borrowings | R$ 1005787 | |
Interest payable | 1,297 | |
Financial expenses | R$ 14317 | |
CDI | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, adjustment to interest rate basis | 109.40% | |
Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notional amount | $ | $ 180,000,000 |
Income tax and social contrib_2
Income tax and social contribuition (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax asset | R$ 120762 | R$ 83296 |
Deferred tax liability | (1,391,760) | (1,132,595) |
Tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | (68,839) | (50,134) |
Deferred tax expense (income) recognised in profit or loss | (2,524) | 17,446 |
Other components of deferred tax expense (income) | 4,468 | 1,259 |
Deferred Income Tax And Social Contribution | (70,783) | (68,839) |
Tax credit | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | (4,897) | (5,618) |
Deferred tax expense (income) recognised in profit or loss | (5,084) | (721) |
Other components of deferred tax expense (income) | 0 | |
Deferred Income Tax And Social Contribution | 187 | (4,897) |
Technological Inovation | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | 277,971 | 161,211 |
Deferred tax expense (income) recognised in profit or loss | (157,885) | (117,073) |
Other components of deferred tax expense (income) | 8,617 | 313 |
Deferred Income Tax And Social Contribution | 427,239 | 277,971 |
Other temporary differences - Assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | (182,818) | (153,632) |
Deferred tax expense (income) recognised in profit or loss | 170,895 | 29,462 |
Other components of deferred tax expense (income) | (93) | (276) |
Deferred Income Tax And Social Contribution | (353,620) | (182,818) |
Other Temporary Differences - Liability | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | 1,027,883 | 679,123 |
Deferred tax expense (income) recognised in profit or loss | (207,344) | (348,666) |
Other components of deferred tax expense (income) | (32,748) | (94) |
Deferred Income Tax And Social Contribution | 1,267,975 | 1,027,883 |
Deferred Tax Assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax asset | 120,762 | |
Deferred Tax Liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liability | (1,391,760) | |
Deferred Tax Liability Asset | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred Income Tax And Social Contribution | 1,049,300 | 630,950 |
Deferred tax expense (income) recognised in profit or loss | (201,942) | (419,552) |
Other components of deferred tax expense (income) | (19,756) | 1,202 |
Deferred Income Tax And Social Contribution | R$ 1270998 | R$ 1049300 |
Income tax and social contrib_3
Income tax and social contribuition (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation Of The Income Tax And Social Contribution Expense [Abstract] | |||
Profit before income taxes | R$ 1488027 | R$ 1774691 | R$ 1912539 |
Statutory rate | 34.00% | 34.00% | 34.00% |
Expected income tax and social contribution | R$ 505929 | R$ 603395 | R$ 650263 |
Permanent Additions (Exclusions) [Abstract] | |||
Gifts | 704 | (7,175) | (814) |
R&D and technological innovation benefit | 187,207 | 134,247 | 86,665 |
Different tax rates | (20,839) | (6,316) | 3,575 |
Unrecorded deferred taxes | 14,625 | 0 | 0 |
Other additions | 2,488 | 248 | 15,323 |
Income tax and social contribution expense | R$ 321744 | R$ 482391 | R$ 545514 |
Average effective tax rate | 22.00% | 27.00% | 29.00% |
Current income tax and social contribution | R$ 119801 | R$ 62840 | R$ 24471 |
Income Tax And Social Contribution Deferred | R$ 201942 | R$ 419551 | R$ 521043 |
Equity (Details 1)
Equity (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in equity [abstract] | ||
Shares outstanding at the biginning of the period | 329,016,372 | 328,855,412 |
Treasury Shares Shares | 1,520,065 | (350,006) |
Long-Term Incentive Plan | 758,024 | 1,058,509 |
Repurchase of common shares | (1,686,235) | (547,543) |
Shares outstanding at the end of the period | 329,608,226 | 329,016,372 |
Equity (Details 2) (Detail Text
Equity (Details 2) (Detail Text) $ / shares in Units, R$ in Thousands, $ in Millions | Jan. 26, 2018share$ / shares | Dec. 31, 2021BRL (R$)shareshares | Dec. 31, 2020BRL (R$) | Dec. 31, 2021$ / shares | Oct. 30, 2018USD ($) |
Disclosure of classes of share capital [line items] | |||||
Expense from share-based payment transactions with employees | R$ 138665 | R$ 3834 | |||
Equity-settled expenses recognized | 305,408 | 75,218 | |||
Payroll taxes (LTIP) | 61,359 | 62,293 | |||
Net foreign exchange gain | 959 | ||||
Net foreign exchange loss | 117 | ||||
Accumulated gains (losses) on financial assets measured at fair value through other comprehensive income, net of tax | 271 | ||||
Gains (losses) on financial assets measured at fair value through other comprehensive income, net of tax | 278 | ||||
Equity valuation adjustments | 22,372 | 22,372 | |||
Treasury shares | R$ 285011 | 13,609 | $ 250 | ||
Share-based long-term incentive plan(LTIP) | |||||
Disclosure of classes of share capital [line items] | |||||
Percentage of stock | 3.00% | ||||
Shares granted | share | 6,167,108 | ||||
Shares outstanding | share | 5,907,695 | ||||
Common shares | |||||
Disclosure of classes of share capital [line items] | |||||
Common Shares | shares | 329,608,226 | ||||
Common shares, per value/$ per shares | $ / shares | $ 0.000025 | ||||
Class A common shares | Share-based long-term incentive plan(LTIP) | |||||
Disclosure of classes of share capital [line items] | |||||
share price per share | $/ shares | $ / shares | $ 21.50 | ||||
LTIP exercised | share | 1,823,727 | ||||
BIVA [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity valuation adjustments | R$ 22372 |
Equity (Details 3)
Equity (Details 3) | 12 Months Ended | ||||
Dec. 31, 2021BRL (R$)shares | Dec. 31, 2021$ / shares | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2020$ / shares | Dec. 31, 2019BRL (R$)shares | |
Disclosure of classes of share capital [line items] | |||||
Amount, Balance at beginning of period | R$ 13609000 | ||||
Amount, Repurchase of common shares | 284,812,000 | R$ 44775000 | R$ 1735000 | ||
Amount, Long-Term Incentive Plan | 0 | 0 | |||
Amount, Balance at end of period | R$ 285011000 | R$ 13609000 | |||
Treasury shares | |||||
Disclosure of classes of share capital [line items] | |||||
Shares, Balance at beginning of period (in shares) | shares | 168,636 | 518,642 | |||
Shares, Repurchase of common shares (in shares) | shares | 1,686,235 | 547,543 | |||
Shares, Long-Term Incentive Plan (in shares) | shares | (166,170) | (897,549) | |||
Shares, Balance at end of period (in shares) | shares | 1,688,701 | 168,636 | 518,642 | ||
Amount, Balance at beginning of period | R$ 13609000 | R$ 41267000 | |||
Amount, Repurchase of common shares | 284,812,000 | 44,775,000 | R$ 1735000 | ||
Amount, Long-Term Incentive Plan | (13,410,000) | (72,433,000) | 0 | ||
Amount, Balance at end of period | R$ 285011000 | R$ 13609000 | R$ 41267000 | ||
Average Price, balance at beginning of period (in usd per share) | $ / shares | $ 18.06 | $ 20.09 | |||
Average Price, Repurchase of common shares (in usd per share) | $ / shares | 30.23 | 16.13 | |||
Average Price, Long-Term Incentive Plan | $ / shares | 18.06 | 18.06 | |||
Average Price, balance at end of period (in usd per share) | $ / shares | $ 30.23 | $ 18.06 |
Earnings per share (Details)
Earnings per share (Details) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021BRL (R$)R$ / sharesshares | Dec. 31, 2021$ / shares | Dec. 31, 2020BRL (R$)R$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2019BRL (R$)R$ / sharesshares | Dec. 31, 2019$ / shares | |
Basic earnings per share [abstract] | ||||||
Profit attributable to stockholders of the Company | R$ | R$ 1166102 | R$ 1291658 | R$ 1365597 | |||
Weighted average number of ordinary shares outstanding | 330,310,786 | 329,292,240 | 328,169,609 | |||
Basic earnings (loss) per share | $ / shares | $ 3.5303 | $ 3.9225 | $ 4.1613 | |||
Diluted earnings per share [abstract] | ||||||
Net income atributable to equity holders of the shares | R$ | R$ 1166102 | R$ 1291658 | R$ 1365597 | |||
Weighted average number of ordinary shares outstanding | 330,310,786 | 329,292,240 | 328,169,609 | |||
Dilutive effect of convertible instruments on number of ordinary shares | 1,864,038 | 521,937 | 1,090,047 | |||
Adjusted weighted average number of ordinary shares outstanding | 332,174,824 | 329,814,177 | 329,259,656 | |||
Diluted earnings per common share - R$ | (per share) | R$ 3.5105 | $ 3.5105 | R$ 3.9163 | $ 3.9163 | R$ 4.1475 | $ 4.1475 |
Total revenue and income (Detai
Total revenue and income (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue and income [Abstract] | |||
Gross Revenue From Transaction Activities And Other Services | R$ 7574728 | R$ 5059464 | R$ 3862627 |
Gross revenue from sales | 0 | 0 | 243,728 |
Gross financial income | 3,587,823 | 2,193,961 | 2,054,430 |
Other financial income | 149,491 | 128,595 | 126,404 |
Total gross revenue and income | 11,312,042 | 7,382,020 | 6,287,189 |
Deductions from gross revenue from transactions activities and other services | (789,922) | (550,744) | (486,559) |
Deductions from gross revenue from sales | 0 | 0 | (69,502) |
Deduction from gross financial income | (73,398) | (16,603) | (23,919) |
Total deductions from gross revenue and income | (863,320) | (567,347) | (579,980) |
Total revenue and income | R$ 10448722 | R$ 6814673 | R$ 5707209 |
Total revenue and income (Det_2
Total revenue and income (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue and income [Abstract] | ||
Membership fees | R$ 268931 | R$ 140803 |
Foreign currency gain on conversion | 959 | |
Membership fees taxes | R$ 24876 | R$ 13314 |
Expenses by nature (Details 1)
Expenses by nature (Details 1) - BRL (R$) R$ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses by nature [Line Items] | ||||
Transactions costs | R$ 4321135 | R$ 2773436 | R$ 1815374 | |
Costs of goods sold | 0 | 0 | (463,293) | |
Marketing and advertising | (791,134) | (510,840) | (476,466) | |
Personnel expenses | (1,074,249) | (619,137) | (399,104) | |
Financial expenses | (790,635) | (109,232) | (38,138) | |
Charge backs | R$ 73356 | (664,268) | (288,309) | (200,633) |
Depreciation and amortization | (768,593) | (376,335) | (128,348) | |
Other (vi) | (550,681) | (362,693) | (273,314) | |
Total | 8,960,695 | 5,039,982 | 3,794,670 | |
Classified as: [Line Items] | ||||
Cost of services | (5,775,895) | (3,772,298) | (2,236,066) | |
Cost of sales | 0 | 0 | (526,021) | |
Selling expenses | (1,523,908) | (617,463) | (565,170) | |
Administrative expenses | (877,559) | (563,893) | (427,366) | |
Financial expenses | (790,635) | (109,232) | (38,138) | |
Other income (expenses), net | 7,302 | 22,904 | (1,909) | |
Total | R$ 8960695 | R$ 5039982 | R$ 3794670 |
Expenses by nature (Footnotes)
Expenses by nature (Footnotes) (Details 1) - BRL (R$) R$ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses by nature [abstract] | |||||
Freight and maintenance costs | R$ 242834 | R$ 212813 | R$ 120870 | ||
Card issuer costs | 3,043,591 | 1,680,441 | 1,390,600 | ||
Card scheme fees | 653,224 | 432,361 | 292,629 | ||
Obsolescence adjustment and write-down to net realizable value | 117,547 | ||||
Key management personnel compensation, other long-term employee benefits | 370,629 | 207,012 | 156,273 | ||
Early payment of receivables | 426,992 | 49,204 | 20,570 | ||
Charge backs | R$ 73356 | 664,268 | 288,309 | R$ 200633 | |
Reversal of value-added tax on sales and services | R$ 29114 | 29,114 | |||
Impairment of tax recoverable | R$ 24476 | ||||
Services tax reversed | R$ 84294 |
Expenses by nature (Details 2)
Expenses by nature (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation and Amortization Expense | |||
Costs of sales and services | R$ 464411 | R$ 187284 | R$ 33421 |
Selling expenses | (89) | (25) | (28) |
Administrative expenses | (23,439) | (17,319) | (4,421) |
Depreciation expense | (487,939) | (204,628) | (37,870) |
Cost of sales and services | (295,218) | (174,943) | (97,765) |
Administrative expenses | (21,484) | (4,709) | (1,892) |
Amortisation expense | (316,702) | (179,652) | (99,657) |
PIS and COFINS credits | 36,048 | 7,945 | 9,179 |
Depreciation and amortization expense, net | R$ 768593 | R$ 376335 | R$ 128348 |
Expenses by nature (Footnotes_2
Expenses by nature (Footnotes) (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature | ||
Depreciation of POS | R$ 448385 | R$ 172519 |
Financial instruments by cate_3
Financial instruments by category (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized cost: | ||||
Cash and cash equivalents | R$ 1794362 | R$ 1640065 | R$ 1403955 | R$ 2763050 |
Accounts receivables | 23,657,402 | 16,076,540 | ||
Other receivables | 206,486 | 164,805 | ||
Judicial deposits | 40,224 | 7,449 | ||
Investment | 1,406 | 1,400 | ||
Fair value through other comprehensive income | ||||
Financial investments | 782,647 | 979,837 | ||
Financial assets total | R$ 26482527 | R$ 18870096 |
Financial instruments by cate_4
Financial instruments by category (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost: | |||
Payables to third parties | R$ 13217150 | R$ 10101510 | |
Trade payables | 578,004 | 335,539 | |
Trade payables to related parties | 543,621 | 58,336 | |
Deposits | 3,133,996 | 766,086 | R$ 0 |
Borrowings | 1,005,787 | 0 | |
Deferred revenue | 179,866 | 213,555 | |
Other liabilities | 143,884 | 159,198 | |
Fair value through profit or loss | |||
Derivative financial instruments | 14,317 | 0 | |
Total financial liabilities | R$ 18816625 | R$ 11634224 |
Financial risk management (Deta
Financial risk management (Details Text) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021BRL (R$)numeralprocess | Nov. 30, 2021USD ($) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Financial risk management [Abstract] | |||||
Fraud risk, number of processes to control fraud risk | process | 2 | ||||
Credit and Liquidity Risk: level of risk for card issuers | numeral | 3 | ||||
Probable scenario for future interest rate (percent) | 11.50% | ||||
Change in interest rate due to adopted scenario (percent) | 25.00% | ||||
Cash and cash equivalents | R$ | R$ 1794362 | R$ 1640065 | R$ 1403955 | R$ 2763050 | |
Short-term borrowings [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ | $ 180,000,000 |
Financial risk management (De_2
Financial risk management (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | ||||
CDI (percent) | 9.15% | |||
Probable scenario for future interest rate (percent) | 11.50% | |||
Change in interest rate due to adopted scenario (percent) | 25.00% | |||
Cash and cash equivalents | R$ 1794362 | R$ 1640065 | R$ 1403955 | R$ 2763050 |
Financial investments | 782,647 | 979,837 | ||
Deposits | 3,133,996 | 766,086 | R$ 0 | |
Interbank deposits | 404,998 | |||
Corporate securities | 218,180 | |||
Bank accounts (note 14) | 5,167,577 | |||
Borrowings | 1,005,787 | R$ 0 | ||
Certificate of deposit | ||||
Disclosure of credit risk exposure [line items] | ||||
Deposits | R$ 2510818 | |||
Interest rate risk [member] | Certificate of deposit | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 163.00% | |||
Interest rate risk [member] | Interbank deposits | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 118.00% | |||
Interest rate risk [member] | Corporate Securities | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 152.00% | |||
Interest rate risk [member] | Borrowings [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 109.00% | |||
Interest rate risk [member] | Cash and cash equivalents [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 100.00% | |||
Interest rate risk [member] | Financial investments | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 100.00% | |||
Interest rate risk [member] | Bank accounts [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Basis of interest rate risk exposure to CDI (percent) | 59.00% | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | R$ 592037 | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Certificate of deposit | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (374,476) | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Interbank deposits | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (43,728) | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Corporate Securities | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 30,345 | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Borrowings [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (100,312) | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Cash and cash equivalents [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 164,184 | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Financial investments | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 71,612 | |||
Scenario with maintaining of CDI (9.15%) | Interest rate risk [member] | Bank accounts [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (278,972) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (744,088) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Certificate of deposit | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (470,653) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Interbank deposits | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (54,958) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Corporate Securities | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (38,138) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Borrowings [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | (126,075) | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Cash and cash equivalents [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 206,352 | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Financial investments | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 90,004 | |||
Probable scenario with increase of 25% (to 11.5%) | Interest rate risk [member] | Bank accounts [Member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Risk exposure associated with instruments sharing characteristic | R$ 350620 |
Financial risk management (De_3
Financial risk management (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of credit risk exposure [abstract] | ||
Exchange variation on P&L, net | R$ 10645 | R$ 55217 |
Financial risk management (De_4
Financial risk management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
At December [Abstract] | |||
Payables to third parties | R$ 13217150 | R$ 10101510 | |
Trade payables | 578,004 | 335,539 | |
Trade payables to related parties | 543,621 | 58,336 | |
Deposits | 3,133,996 | 766,086 | R$ 0 |
Borrowings | 1,005,787 | 0 | |
Due within 30 days | |||
At December [Abstract] | |||
Payables to third parties | 10,415,882 | 8,348,127 | |
Trade payables | 573,570 | 332,733 | |
Trade payables to related parties | 0 | 0 | |
Deposits | 655,289 | 5,231 | |
Borrowings | 0 | ||
Due within 31 to 120 days | |||
At December [Abstract] | |||
Payables to third parties | 1,770,271 | 1,146,136 | |
Trade payables | 4,339 | 2,806 | |
Trade payables to related parties | 259,216 | 46,945 | |
Deposits | 1,073,239 | 77,812 | |
Borrowings | 0 | ||
Due within 121 to 180 days | |||
At December [Abstract] | |||
Payables to third parties | 504,444 | 300,058 | |
Trade payables | 95 | 0 | |
Trade payables to related parties | 5,691 | 5,132 | |
Deposits | 334,942 | 53,000 | |
Borrowings | 0 | ||
Due within 181 to 360 days | |||
At December [Abstract] | |||
Payables to third parties | 526,553 | 299,645 | |
Trade payables | 0 | 0 | |
Trade payables to related parties | 323,203 | 6,438 | |
Deposits | 1,201,888 | 435,952 | |
Borrowings | 1,114,211 | ||
Due to 361 days or more days [Member] | |||
At December [Abstract] | |||
Payables to third parties | 0 | 7,544 | |
Trade payables | 0 | 0 | |
Trade payables to related parties | 0 | 0 | |
Deposits | 90,595 | R$ 194091 | |
Borrowings | R$ 0 |
Capital management (Details)
Capital management (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Capital management [Abstract] | ||||
Borrowings | R$ 1005787 | R$ 0 | ||
Cash and cash equivalents | (1,794,362) | (1,640,065) | R$ 1403955 | R$ 2763050 |
Net debt | (788,575) | |||
Total equity | 10,502,198 | R$ 9327459 | R$ 8014948 | R$ 6574376 |
Total capital | R$ 9713623 | |||
Gearing ratio | (8.10%) |
Non-cash Transactions (Details)
Non-cash Transactions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-cash Transactions [Abstract] | |||
Distribution of LTIP with treasury shares | R$ 0 | R$ 0 | |
Transfer of POS from inventory to property and equipment | 0 | 0 | R$ 42429 |
Property and equipment acquired through lease | 15,016 | 79,031 | 0 |
MTM of financial investments | 271 | (278) | (28) |
Unpaid consideration for acquisition | 8,896 | 68,701 | 1,961 |
Income taxes on the fair value of acquired assets | 32,748 | 0 | 0 |
Unpaid consideration for acquisition of non-controlling shares | R$ 0 | R$ 0 | R$ 1574 |
Fair value measurement (Details
Fair value measurement (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Categories of financial assets [abstract] | ||||
Cash and cash equivalents | R$ 1794362 | R$ 1640065 | R$ 1403955 | R$ 2763050 |
Financial investments | 782,647 | 979,837 | ||
Accounts receivable | 23,428,522 | 16,042,970 | ||
Other receivables | 194,776 | 164,805 | ||
Judicial deposits | 40,224 | 7,449 | ||
Investment | 1,406 | 1,400 | ||
Categories of financial liabilities [abstract] | ||||
Payables to third parties | 13,217,150 | 10,101,510 | ||
Trade payables | 578,004 | 335,539 | ||
Payables to related parties | 543,621 | 58,336 | ||
Deposits | 3,133,996 | 766,086 | R$ 0 | |
Borrowings | 1,005,787 | 0 | ||
Derivative financial instruments | 14,317 | 0 | ||
Deferred revenue | 179,866 | 213,555 | ||
Quoted prices in active markets (Level 1) | ||||
Categories of financial assets [abstract] | ||||
Cash and cash equivalents | 446,322 | 321,674 | ||
Financial investments | 782,647 | 979,837 | ||
Accounts receivable | 0 | 0 | ||
Other receivables | 0 | 0 | ||
Judicial deposits | 0 | 0 | ||
Investment | 0 | 0 | ||
Categories of financial liabilities [abstract] | ||||
Payables to third parties | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Payables to related parties | 0 | 0 | ||
Deposits | 0 | 0 | ||
Borrowings | 0 | |||
Derivative financial instruments | 0 | |||
Deferred revenue | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Significant observable inputs (Level 2) | ||||
Categories of financial assets [abstract] | ||||
Cash and cash equivalents | 1,348,040 | 1,318,391 | ||
Financial investments | 0 | 0 | ||
Accounts receivable | 23,657,402 | 16,076,540 | ||
Other receivables | 206,486 | 164,805 | ||
Judicial deposits | 40,224 | 7,449 | ||
Investment | 0 | 0 | ||
Categories of financial liabilities [abstract] | ||||
Payables to third parties | 13,217,150 | 10,101,510 | ||
Trade payables | 578,004 | 335,539 | ||
Payables to related parties | 543,621 | 58,336 | ||
Deposits | 3,133,996 | 766,086 | ||
Borrowings | 1,005,787 | |||
Derivative financial instruments | 14,317 | |||
Deferred revenue | 179,866 | 213,555 | ||
Other liabilities | 143,884 | 159,198 | ||
Significant unobservable inputs (Level 3) | ||||
Categories of financial assets [abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Financial investments | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||
Other receivables | 0 | 0 | ||
Judicial deposits | 0 | 0 | ||
Investment | 1,406 | 1,400 | ||
Categories of financial liabilities [abstract] | ||||
Payables to third parties | 0 | 0 | ||
Trade payables | 0 | 0 | ||
Payables to related parties | 0 | 0 | ||
Deposits | 0 | 0 | ||
Borrowings | 0 | |||
Derivative financial instruments | 0 | |||
Deferred revenue | 0 | 0 | ||
Other liabilities | R$ 0 | R$ 0 |