Santander's PagoNxt surpasses €1 billion in yearly earnings during the fiscal year 23.
In the world of cross-border payments, Santander's payments arm, PagoNxt, has been making waves. As we move through 2023 and into 2025, PagoNxt is experiencing strong growth with improving profitability and reducing losses.
Let's take a closer look at the key details. In the first half of 2025, PagoNxt's EBITDA margin increased significantly by 8.7 percentage points year-on-year to 28.8%. This reflects better operational efficiency.
PagoNxt's payments platform, Getnet, saw its Total Payments Volume (TPV) rise 15% year-on-year to €113 billion, and the number of transactions increased by 7%. These figures highlight the increasing popularity and usage of PagoNxt's services.
Santander's attributable profit, supported by PagoNxt and Cards, was €335 million, marking a 47% increase year-on-year in constant euros, excluding one-time charges in Q2 2024 related to platform discontinuations.
These profits and margin improvements come after substantial write-downs in 2024 (€243 million net) on merchant platforms in Germany and Latin America, signaling a turnaround from previous losses.
The growth in PagoNxt is part of Santander’s broader push to build a global payments platform, showing expanding scale gains bolstered by new investments and platform enhancements.
While a specific standalone annual revenue figure for PagoNxt was not given for 2023 alone, the upward trajectory in revenue and profitability metrics through H1 2025 indicates strong momentum.
PagoNxt reduced its pre-tax losses significantly from -€141m in 2022 to -€17m in 2023. This shift from loss-making to profitable is particularly noteworthy. PagoNxt reported a pre-tax profit for the second consecutive quarter in Q4 2023, marking the second consecutive quarter of profit for the company.
Despite slower revenue growth in 2023 compared to the previous year, PagoNxt, Santander's payments arm, achieved annual revenues exceeding €1bn in 2023.
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In summary, PagoNxt has shifted from loss-making in 2024 due to restructuring charges to profitable with growing transaction volume, revenue, and EBITDA margins by mid-2025, reflecting a successful scaling and efficiency improvement phase within Santander’s payments business.
- In the realm of both business and finance, the growth and profitability of Santander's payments arm, PagoNxt, in the cross-border payments sector is of significant interest to investors.
- As PagoNxt's platforms like Getnet expand and streamline their operations, there are opportunities for investing in the growing business sector, as indicated by the rising Total Payments Volume (TPV) and EBITDA margins.
