PagSeguro Digital : PagBank PagSeguro reports Consolidated TPV growth of 151% y/y in 2Q21 (record R$101 billion)

PagBank PagSeguro is recognized as #1

in point-of-sales by merchants,

according to SEBRAE

São Paulo, July 29, 2021 - PagSeguro Digital Ltd., or PagBank PagSeguro (NYSE: PAGS), which promotes innovative solutions and inclusion in financial services and payments, announces that it was recognized as the most popular and preferred point-of-sale (POS) provider by Brazilian merchants, according to research conducted by SEBRAE (a Brazilian industry group providing services to support micro and small businesses) in "Uso de Maquininha 2021" (click here). The data revealed that one third of Brazilian merchants (34%) use PagBank PagSeguro POS primarily because of the benefits and contributions to their businesses.

The preference for PagBank PagSeguro extended to all the Brazilian regions. According to the research, in the Southeast, for example, 37% of the interviewees use the POS of PagBank PagSeguro, compared to 22% and 12% of other players. In the other regions, PagBank PagSeguro was also recognized as the leader: 33% in the Midwest, 32% in the Northeast, 27% in the South and 26% in the North.

The research indicated that the multiple benefits offered to merchants are the main reasons why they choose PagBank PagSeguro to be their POS provider. According to the interviewees, 76% confirmed choosing PAGS due to a more competitive pricing policy, 52% confirmed choosing PAGS due to a free POS rental policy and 43% confirmed choosing PAGS due to the faster prepayment the company offers, since PagBank PagSeguro's users are automatically prepaid right after the card transaction is complete, even during the weekends, a highly demanded feature by merchants to manage their working capital needs for their businesses.

Another highlight was the score from 0 to 10 in some of the study's questions. Some of the favorable results for PagBank PagSeguro's performance included improving safety for businesses (score of 8.3), supporting in sales (score of 8.4), and the most positive indicator, customer satisfaction (score of 8.6).

"We constantly invest in new technologies and solutions aiming to support even more the Brazilian entrepreneurs who need efficiency in financial services, with the best balance between price and safety. Our clients can benefit from multiple advantages that our point-of-sales provides, such as no rental fee policy, 0% MDR for new merchants for a period, acceptance of all cards/networks and receipt of the cash right after that transaction is concluded, even during the weekends. Besides that, our clients gain access to a PagBank free digital account", says Ricardo Dutra, CEO of PagBank PagSeguro. "Recognizing our company as the preferred player in Brazilian payments services gives us stamina to pursue our mission to promote even broader financial inclusion in the country and foster the development of entrepreneurship in Brazil".

The research published by SEBRAE was conducted between February 3 and March 19, 2021, covering all the Brazilian territory. There were 3,520 interviewees, composed of merchants from different sectors, such as retail, home building, industrials and general services.

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About PagBank PagSeguro

PagBank PagSeguro is a disruptive provider of financial technology solutions focused primarily on consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil. Among its peers, PagBank PagSeguro is the only financial technology provider in Brazil whose business model covers all the following five pillars:

• Multiple digital banking solutions
• In-personpayments via point of sale (POS) devices that PagSeguro Digital provides to merchants
• Free digital accounts that PagSeguro Digital provides to its consumers and merchants with functionalities such as bill payments, top up prepaid mobile phone credit, wire transfers, peer to peer cash transfers, prepaid credit cards, cash cards, loans, investments, QR code payments, and payroll portability, among other digital banking services
• Issuer of prepaid, cash and credit cards
• Operate as a full acquirer

PagBank PagSeguro is an UOL Group Company that provides an easy, safe and hassle-free way of owning a free PagBank digital account, which is similar to a regular checking account linked to the Brazilian Central Bank's platform, with the feature of accepting payments, where its clients can transact and manage their cash, without the need to open a regular bank account. PagBank PagSeguro's end-to-end digital banking ecosystem enables its customers to accept a wide range of online and in-person payment methods, including credit cards, debit cards, meal voucher cards, boletos, bank transfers, bank debits and cash deposits.

PagBank PagSeguro's mission is to disrupt and democratize financial services in Brazil, a concentrated, underpenetrated and high interest rate market, by providing an end-to-end digital banking ecosystem that is safe, affordable, simple and mobile-first for both merchants and consumers.

SOURCE: PagBank PagSeguro

Contacts:

Investor Relations

PagBank PagSeguro

[phone]

[e-mail]

investors.pagseguro.com

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Forward-Looking Statements:

This press release includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "project" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may," or similar expressions are generally intended to identify forward-looking statements. We cannot guarantee that such statements will prove correct. These forward-looking statements speak only as of the date hereof and are based on our current plans, potential mergers and acquisitions opportunities, estimates of future events, expectations and trends (including trends related to the global and Brazilian economies and capital markets, as well as the continuing economic, financial, political and public health effects of the coronavirus, or the COVID-19, pandemic.) that affect or may affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of our Class A common shares, and are subject to several known and unknown uncertainties and risks, many of which are beyond our control. As a consequence, current plans, potential mergers and acquisitions opportunities, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this press release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented. In light of the risks and uncertainties described above, the future events and circumstances discussed in this press release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these estimates and forward-looking statements. To obtain further information on factors that may lead to results different from those forecast by us, please consult the reports we file with the U.S. Securities and Exchange Commission (SEC) and in particular the factors discussed under "Forward- Looking Statements" and "Risk Factors" in our annual report on Form 20-F filed with the SEC on April 27, 2021.

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