Stone Pagamentos

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Stone Pagamentos S. A.
Public
Traded as
IndustryPayment processing
Financial services
FoundedJune 2012 (2012-06)
FounderAndré Street
Eduardo Pontes
HeadquartersRio de Janeiro and São Paulo, Brazil
Key people
Thiago dos Santos Piau (CEO)
ProductsPayment processing
Point of sale services
Number of employees
5,000
Websitewww.stone.co

Stone Pagamentos is a Brazilian Financial technology company focused on payment processing and financial services. The company offers e-commerce and point of sale products to online retailers and brick and mortar merchants. The company was founded in 2012, after the Central Bank of Brazil promoted the abolition of the credit card payment industry monopoly, opening the acquiring market, previously dominated by big-bank-owned acquirers.[1]

In 2018, the holding company StoneCo Ltd. went public and debuted on NASDAQ (STNE). The IPO attracted investors such as Warren Buffett owned Berkshire Hathaway Inc and Ant Financial, payment affiliate of the Chinese e-commerce Alibaba Group, raising an estimate of $1.5 billion.[2]

As of July, 2019, Stone has an active client base of 360k clients and an estimated market share of 7% of the Brazilian acquirer market.[3]

History[edit]

According to its founders, Stone was created to disrupt credit card brand exclusivity in Brazil.[4][5]

In its first two years, the company focused on structuring its business and on being licensed by the credit card brands Visa and Mastercard to enter the market. In 2014 Stone processed its first payment transaction and, a year later, expanded beyond its commercial headquarters in Rio de Janeiro to São Paulo, and later expanded its payment operation throughout Brazil.

In 2016, Stone acquired the Brazilian operation of the global credit card processor Elavon and became the fourth largest in the market.[6]

Stone raised capital in private investment rounds, with investors including Madrone Partners (Walton family), Tiger Global, Actis Capital, Gávea Investimentos, Valor Capital, and 3G Capital’s founders Jorge Paulo Lemann, Marcel Herrmann Telles and Carlos Alberto Sicupira.[7] On October 25, 2018, Stone completed its IPO on NASDAQ and the shares opened at $32, a third above its initial public offering price of $24, allowing the company to reach a $9 billion valuation.[8] On April 3, 2019, Stone Pagamentos priced its follow-on offering.[9]

In March 2019, Stone announced investments in two software companies, VHSYS and Tablet Cloud, and launched a credit solution to merchants.[10] In August 2019, Stone announced a joint venture with Grupo Globo, Brazil's largest media conglomerate, focused on the micro-merchant market.[11] In October 2019, Stone Pagamentos celebrated its first IPO anniversary, providing a 53% return to investors over the period, and became one of Brazil's few tech decacorns.[12]

References[edit]

  1. ^ BCG - Boston Consulting Group (2018). Global Payments 2018: Reimagining the Customer Experience (PDF). BCG - Boston Consulting Group.
  2. ^ Mandl, Carolina (October 24, 2018). "Brazil's StoneCo IPO raises $1.5 bln, prices above range- source". Reuters. Retrieved January 18, 2019.
  3. ^ "StoneCo Reports Second Quarter 2019 Financial Results". StoneCo. August 14, 2019. Retrieved November 4, 2019.
  4. ^ Garber, Gabriel (Summer 2015). "The Break of Brand in Brazilian Credit Card" (PDF). Working Paper.
  5. ^ https://www.bcb.gov.br/Pec/Depep/Seminarios/2016_XISemRiscosBCB/Ingl/archives/Break-BCB-Seminar-Aug-2016.pdf
  6. ^ Parra-Bernal, Guillermo (April 22, 2016). "Citigroup, U.S. Bancorp exit money-losing Brazil card venture". Reuters. Retrieved January 21, 2019.
  7. ^ "Stone Pagamentos raises US$1.1B on NASDAQ". Lavca. October 1, 2018. Retrieved November 4, 2019.
  8. ^ "Ação da Stone fecha em alta de 30% em estreia na Nasdaq, valor de mercado alcança US$9 bi". Reuters. October 25, 2018. Retrieved January 19, 2019.
  9. ^ "StoneCo Ltd. Announces Pricing of Follow-on Offering of Class A Common Shares". StoneCo. April 3, 2019. Retrieved November 4, 2019.
  10. ^ "StoneCo Reports First Quarter 2019 Financial Results and Announces Share Repurchase Program". StoneCo. May 13, 2019. Retrieved November 4, 2019.
  11. ^ "StoneCo Reports Second Quarter 2019 Financial Results". StoneCo. August 14, 2019. Retrieved November 4, 2019.
  12. ^ Mascarenhas, Gabriel (October 26, 2019). "A Stone Avança". O Globo. Retrieved November 4, 2019.