Brazil is an economy on the brink of digital transformation, but as one of the countries most affected by COVID-19, this progress has slowed. While major retailers in Brazil have the resources to adjust to the pandemic’s challenges quickly, small-medium sized enterprises (SME) are fighting to stay afloat. As a result, point of sale (POS) terminals, a fast-growing and increasingly accessible technology in Brazil, see a decline in transactions, especially in their highest growth segment, SMEs. RIWI’s client, a global quantitative trading and equity research firm, sought to understand POS terminal technology’s changing landscape in Brazil to recommend investment strategy for their client base. In assessing the performance of these POS terminal service providers, critical KPIs like churn and adoption rates are either released quarterly by the terminal manufacturers themselves or derived from sets of often outdated transaction data. The challenge is that these critical data are often backward-looking and static, making it difficult to derive accurate and actionable insights.
RIWI’s global quantitative trading firm client published a series of equity research reports analyzing the relative performance of POS terminal providers and were able to engage their institutional investor client base with unique insights. RIWI’s data from over 3,800 Brazilian business owners were used to produce a unique view on the POS market in combination with fundamental and quantitative research to determine buy/sell/hold ratings for three major companies.