CSUD3 CSU Digital

CSU Digital is a Brazilian financial technology company, with shares traded on B3 under the ticker CSUD3. Founded in 1992 by Marcos Ribeiro Leite under the name CardSystem Ltda., it began operations as the first independent processor and manager of electronic payment methods in Brazil, in an incipient card market. From the outset, it was structured to serve mainly small and medium-sized commercial banks, offering card issuance and processing in an environment where a few players dominated the sector. In 1993, it incorporated the full-service concept in cards into its business model, starting to cover the entire operational cycle, from transaction processing to customer service, which consolidated its position as a technological partner for financial institutions and other card issuers.

Throughout the 1990s, the company expanded its operations and corporate structure. In 1996, it became the first company in the country to operate simultaneously with the three main international card brands (Visa, Mastercard and American Express), which reinforced its relevance in the payment methods ecosystem. In 1997, CardSystem became a corporation (sociedade anônima) with the entry of private equity investors, began to launch private label cards and acquired UPSI Informática Ltda., changing its name to CSU CardSystem S.A. In the 2000s, it identified opportunities related to performance and engagement of its clients’ card base, which led to the creation of new business units focused on relationship marketing, loyalty and customer service. In 2006, it went public on the former Bovespa (now B3) under the code CARD3, later changed to CSUD3, becoming the first company in its segment to list shares on the Novo Mercado, the segment with the highest corporate governance requirements.

CSU Digital’s business model has evolved into an integrated technology platform for payments, financial services and customer experience. The company organizes its activities into two major segments: CSU Pays and CSU DX. CSU Pays concentrates solutions for managing payment operations and associated services, while CSU DX is dedicated to customer experience, customer service and process hyperautomation solutions. In 2024, CSU Pays accounted for approximately 65% of annual net revenue, consolidating itself as the company’s core business, while CSU DX represented around 35% of revenue. CSU operates in a B2B format, providing technological and operational infrastructure for banks, fintechs, card issuers, acquirers and companies in other sectors that wish to offer financial services or relationship programs to their end consumers.

In the CSU Pays segment, the company offers a full-service digital payments infrastructure, covering the processing of credit, debit and prepaid cards, both physical, digital and virtual, as well as digital wallets, Pix payments, installment Pix and solutions involving cryptocurrencies. On behalf of its clients, the company manages the entire operational cycle: transaction authorization, billing, credit cycle management, collections, card issuance and delivery, fraud prevention, relationships with card brands, accounting, back office, invoice and card activation management, among other activities. CSU developed the proprietary Wide Platform architecture, which brings together process intelligence from decades of operations, and more recently the Magnus core, 100% cloud-based, combining the robustness of a high-end platform with flexibility and scalability in a cloud environment. This combination supports the offering of SaaS solutions for payments and loyalty, adaptable to different client profiles and transaction volumes.

CSU Pays also encompasses Embedded Finance and loyalty and incentive program ecosystems. In Embedded Finance, the company provides a complete banking core, accessible via APIs or a white-label app, enabling the opening of digital accounts for individuals and legal entities, receipt and electronic transfer of funds, bill payment, top-ups, issuance and settlement of boletos and operation of digital cards, among other services. This structure allows companies from different sectors to embed financial services into the journeys of their customers, suppliers and employees. In loyalty and incentives, CSU Digital provides the technological and operational infrastructure for points programs, cashback, reward catalogs, discounts at partner stores and incentive campaigns tied to sales performance or internal engagement, often with gamification elements. These programs complement the payment solutions, acting as tools for activation, monetization and retention of card and digital account users.

The CSU DX segment is focused on customer experience and process management through digital technologies and hyperautomation. The unit offers digital customer service via apps, chatbots and other non-voice channels, telephone service supported by proprietary technological solutions, and operations in customer service (SAC), telesales, collections, engagement and back office. By combining technology and specialized teams, CSU DX operates in the front, middle and back office of corporate clients, integrating channels and systems to support relationship, monetization and collections on an ongoing basis. The HAS hyperautomation platform, based on artificial intelligence, machine learning and workflow automation, is applied to use cases such as fraud prevention, interchange, curation of documents and data, onboarding, credit pipeline and quality monitoring, enabling operational efficiency gains and creating cross-sell opportunities with CSU Pays solutions.

In terms of market positioning, CSU Digital operates in critical chains of the financial system and payment methods in Brazil. As a processor, it is positioned at the technological core that connects card issuers, brands, acquirers and merchants, operating in a sector marked by strong interconnection and high requirements for reliability and security. The expansion of the digital bank, fintech and digital wallet ecosystem has expanded the addressable market for its solutions, especially in digital payments and Embedded Finance. In addition to its focus on financial institutions, the company serves companies in other sectors that want to structure loyalty programs, proprietary marketplaces, incentive solutions or embedded financial services. Revenue concentration in a few major clients is significant, with four clients jointly accounting for a substantial share of net revenue, distributed between the CSU Pays and CSU DX segments.

CSU Digital’s geographic presence is predominantly Brazilian, with headquarters in Barueri (SP) and operations focused on the domestic financial services and customer service market. The company, however, has begun an internationalization process with the opening of an office in Miami, in the United States, through the subsidiary CSU International LLC. This structure makes it possible to support clients with operations based in Brazil that are undergoing geographic expansion, replicating abroad part of the technological and service infrastructure already offered in the Brazilian market. The international operation expands the scope of activity in payments and digital services without changing the company’s main focus on its established client base in Brazil.

From a regulatory standpoint, CSU Digital is classified as a payment institution issuing postpaid payment instruments and electronic money, within the regulatory framework of the Central Bank of Brazil for the payments segment. The need for formal authorization to operate is subject to reaching certain transaction volumes and balances in payment accounts, as set out in Central Bank regulations. In August 2024, upon reaching the mark of R$ 300 million in payment transactions over a twelve-month period, the company began the process of obtaining its license from the regulator, in line with BCB Resolutions No. 80 and 81 of 2021. The company also depends on the protection and management of intellectual property assets, maintaining dozens of trademarks registered with the INPI, including the “CSU” brand, and a portfolio of proprietary software booked as intangibles, combined with third-party solutions in a hybrid technology model.

In the environmental, social and governance field, CSU Digital has been developing initiatives that predate the recent consolidation of the ESG agenda. In 2003, it created the Instituto CSU, a non-profit organization responsible for the group’s social projects, focused on training and integrating young people, women, retirees and people with disabilities into the job market, having served tens of thousands of people since its inception. In environmental terms, although its activities are not subject to specific regulation, the company maintains a Sustainability Program aimed at raising employee awareness about recycling, with selective collection of solid waste at its units and disposal through specialized companies. Its listing on B3’s Novo Mercado reinforces formal governance commitments, such as a capital structure composed of common shares, greater transparency and corporate practices aligned with more stringent standards in the Brazilian capital markets.