CSUD3

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 a still-nascent card market. From the outset, it was structured to serve mainly small and mid-sized commercial banks, offering card issuance and processing in an environment where a few players dominated the sector. In 1993, it incorporated the concept of full-service card processing into its business model, starting to cover the entire operational cycle, from transaction processing to customer service, which consolidated its position as a technology 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 payments ecosystem. In 1997, CardSystem became a corporation with the entry of private equity investors, started issuing private-label cards, and acquired UPSI Informática Ltda., adopting the name CSU CardSystem S.A. In the 2000s, it identified opportunities related to performance and engagement of its clients’ card bases, 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 standards.

CSU Digital’s business model has evolved into an integrated technology platform for payments, financial services, and customer experience. The company structures its activities into two major segments: CSU Pays and CSU DX. CSU Pays concentrates solutions for managing payment-method 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, establishing itself as the company’s core business, while CSU DX represented about 35% of revenue. CSU operates in a B2B model, providing technology and operational infrastructure to banks, fintechs, card issuers, acquirers, and companies in other sectors that want 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 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, collection, card issuance and delivery, fraud prevention, relationships with card schemes, accounting, back office, invoice management and card unlocking, among other activities. CSU has developed the proprietary Wide Platform architecture, which incorporates the process intelligence gained over decades of operations, and more recently the Magnus core, which is 100% cloud-based, combining the robustness of a high-platform environment with flexibility and scalability in the cloud. 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 ecosystems and loyalty and incentive programs. In Embedded Finance, the company provides a complete banking core, accessible via APIs or white-label apps, which enables the opening of digital accounts for individuals and companies, 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 incentive, CSU Digital provides the technological and operational infrastructure for points programs, cashback, reward catalogs, discounts at partner stores, and incentive campaigns linked to sales performance or internal engagement, often with gamification elements. These programs complement the payments solutions, functioning 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, phone service supported by proprietary technology solutions, and operations in customer service (SAC), telesales, collection, 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 collection 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, document and data curation, onboarding, credit workflow, and quality monitoring, enabling operational efficiency gains and creating cross-sell opportunities with CSU Pays solutions.

In terms of its target market, CSU Digital is embedded in critical links of Brazil’s financial system and payments ecosystem. As a processor, it is positioned at the technological core that connects card issuers, card schemes, acquirers, and merchants, operating in a sector characterized by strong interconnection and high requirements for reliability and security. The expansion of digital banks, fintechs, and digital wallets has increased the addressable market for its solutions, especially in digital payments and Embedded Finance. In addition to its focus on financial institutions, the company serves businesses in other sectors that want to build loyalty programs, proprietary marketplaces, incentive solutions, or embedded financial services. Revenue is significantly concentrated in a few large clients, with four clients together accounting for a sizable share of net revenue, distributed between the CSU Pays and CSU DX segments.

CSU Digital’s geographic footprint is predominantly Brazilian, with headquarters in Barueri (SP) and operations focused on the domestic financial-services and customer-service markets. The company, however, has begun an internationalization process with the opening of an office in Miami, in the United States, through its subsidiary CSU International LLC. This structure allows it to support clients with operations based in Brazil that are undergoing geographic expansion, replicating abroad part of the technology and service infrastructure already offered in the Brazilian market. The international operation broadens its scope in payments and digital services without altering the company’s primary 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 requirement for formal operating authorization is conditional on reaching certain thresholds of transaction volumes and balances held in payment accounts, pursuant to Central Bank resolutions. In August 2024, upon reaching R$ 300 million in payment transactions over a twelve-month period, the company began the process of obtaining a 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 recognized as intangible assets, combined with third-party solutions in a hybrid technology model.

In the environmental, social, and governance field, CSU Digital has developed initiatives that predate the recent consolidation of the ESG agenda. In 2003, it created Instituto CSU, a non-profit entity responsible for the group’s social projects, focused on training and placing young people, women, retirees, and people with disabilities in 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 capital composed solely of common shares, greater transparency, and corporate practices aligned with the stricter standards of the Brazilian capital markets.