Projected strong growth for PagoNxt in 2025, despite reporting a setback in the form of one-time losses during the first half of 2024.
In a recent financial report, PagoNxt, the digital payments arm of Banco Santander, announced its impressive performance in the first half of 2025. The company's total revenue for H1 2025 is projected to reach €641 million, marking a 19.2% year-on-year increase.
PagoNxt's growth is attributed to accelerating commercial activity and the scaling of its global platform. Key metrics such as Total Payments Volume (Getnet) and the number of transactions have shown significant growth. Getnet's Total Payments Volume increased by 15.5% to €113.0 billion, while the number of transactions grew by 7.2% to 5.1 billion. Additionally, the cost per transaction was reduced by 21.5% to 2.9 euro cents.
Open market revenue, which now accounts for 22% of PagoNxt's total revenue, saw a 31.0% year-on-year increase, reaching €158 million. This growth represents a 2.2 percentage point increase in the proportion of PagoNxt's total revenue.
The EBITDA margin for H1 2025 is projected to be 28.8%, representing an 8.7 percentage point year-over-year increase. PagoNxt aims to further improve this margin, targeting a c.30% EBITDA margin for H1 2025.
Despite some strategic decisions leading to one-off losses in H1 2024, these losses were partially offset by the performances in Santander's Cards segment. PagoNxt's H1 2024 EBITDA margin was 20.1%, an 8.9 percentage point year-over-year increase.
In H1 2024, PagoNxt contributed 1.9% of Santander's total revenue, up from 1.8% in H1 2023 and 1.6% in H1 2022. If the revenue growth and EBITDA margin targets are met, PagoNxt's H1 2025 EBITDA margin would be a 9.4 percentage point increase from its current EBITDA margin of 20.1%.
If the revenue growth and EBITDA margin targets are met, PagoNxt's H1 2025 revenue would account for 23.8% of Santander's total revenue, assuming Santander's H1 2025 total revenue remains the same as H1 2024. The projected H1 2025 revenue growth for PagoNxt is around €175m more than H1 2024, representing a 31.3% increase from its current total revenue of €583m.
These projections, if met, would indicate a strong performance for PagoNxt in the first half of 2025, demonstrating the company's commitment to growth and profitability in the digital payments sector.
[1] Banco Santander's 2025 H1 Financial Reports and Presentations [2] Investor Relations - Banco Santander [3] PagoNxt's Official Website
PagoNxt's impressive growth in the first half of 2025 is not only limited to revenue, but also extends to investing in its global platform, as indicated by the significant increase in Total Payments Volume and number of transactions, and the cost per transaction reduction.
The growth in open market revenue, which now comprises 22% of PagoNxt's total revenue, showcases the company's potential in business ventures beyond traditional financial services.
