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Nu's Global Strategy Takes Shape: Can Cross-Border Banking Add Growth?
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Key Takeaways
Nu Global reaches 35 countries, expanding the company's cross-border opportunity beyond local banking.
Nu had 139 million customers in Q2 2026 and topped $1 billion in quarterly net income for the first time.
Planned integrations across Brazil, Colombia, Mexico and the U.S. could deepen cross-border relationships.
Nu Holdings’ (NU - Free Report) international expansion is shifting from a market-entry story to a question of how much business it can build outside its core countries. Nu Global lets the company reach customers across more than 35 countries without relying only on local banking operations, widening its cross-border opportunity.
The product targets a sizable market. Nu says more than 300 million people live and work across borders each year, while about $800 billion moved internationally in 2025. Users lose roughly 6%, on average, to fees and exchange-rate margins. Nu Global offers fee-free transfers, plus dollar and euro balances yielding 3.5% and 2.2%, respectively.
Nu is expanding from a stronger base. In the second quarter of 2026, the company had 139 million customers, generated $5.9 billion in gross revenues and crossed $1 billion in quarterly net income for the first time. Deposits reached $45.3 billion, while its efficiency ratio stayed near 20%.
Cross-border services could deepen existing relationships. Nu serves more than 16 million customers in Mexico and more than 5 million in Colombia, while Brazil remains its largest market. Planned integrations with Brazil, Colombia, Mexico and the United States could make Nu Global more useful to customers moving money between markets.
Execution will shape how quickly this opportunity contributes. Nu is still investing in international expansion, with second-quarter operating expenses at $806 million and management expecting an efficiency ratio of about 20% for 2026. In the United States, management expects 12 to 30 months to build confidence in its credit models, suggesting international growth may develop gradually.
Nu Holdings Peers Broaden Their Global Payments Growth Plans
SoFi Technologies (SOFI - Free Report) is pushing its payments infrastructure beyond traditional banking. On Sept. 22, SoFi Technologies began stablecoin settlement across Mastercard’s global network, with its $25 billion annualized card program moving to SoFiUSD. The move gives SoFi Technologies another route to scale blockchain-based settlement while keeping its digital banking platform central.
PayPal Holdings (PYPL - Free Report) is also widening its cross-border reach. PayPal World now lets U.S. users pay at Weixin Pay merchants in China, while PYUSD is available across 70 markets. With second-quarter payment volume up 10% to $486.4 billion, PayPal has scale to test whether broader interoperability can support international growth over time.
NU’s Price Performance, Valuation and Estimates
Shares of NU have gained 13.6% over the past three months, outperforming the broader industry and the S&P 500 Composite.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings of 13.06X, above the industry’s 11.04X. It carries a Value Score of D.
Image Source: Zacks Investment Research
NU’s estimates for both 2026 and 2027 have increased over the past month. The figures also suggest a year-over-year increase of 38.7% and 35.1%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Nu's Global Strategy Takes Shape: Can Cross-Border Banking Add Growth?
Key Takeaways
Nu Holdings’ (NU - Free Report) international expansion is shifting from a market-entry story to a question of how much business it can build outside its core countries. Nu Global lets the company reach customers across more than 35 countries without relying only on local banking operations, widening its cross-border opportunity.
The product targets a sizable market. Nu says more than 300 million people live and work across borders each year, while about $800 billion moved internationally in 2025. Users lose roughly 6%, on average, to fees and exchange-rate margins. Nu Global offers fee-free transfers, plus dollar and euro balances yielding 3.5% and 2.2%, respectively.
Nu is expanding from a stronger base. In the second quarter of 2026, the company had 139 million customers, generated $5.9 billion in gross revenues and crossed $1 billion in quarterly net income for the first time. Deposits reached $45.3 billion, while its efficiency ratio stayed near 20%.
Cross-border services could deepen existing relationships. Nu serves more than 16 million customers in Mexico and more than 5 million in Colombia, while Brazil remains its largest market. Planned integrations with Brazil, Colombia, Mexico and the United States could make Nu Global more useful to customers moving money between markets.
Execution will shape how quickly this opportunity contributes. Nu is still investing in international expansion, with second-quarter operating expenses at $806 million and management expecting an efficiency ratio of about 20% for 2026. In the United States, management expects 12 to 30 months to build confidence in its credit models, suggesting international growth may develop gradually.
Nu Holdings Peers Broaden Their Global Payments Growth Plans
SoFi Technologies (SOFI - Free Report) is pushing its payments infrastructure beyond traditional banking. On Sept. 22, SoFi Technologies began stablecoin settlement across Mastercard’s global network, with its $25 billion annualized card program moving to SoFiUSD. The move gives SoFi Technologies another route to scale blockchain-based settlement while keeping its digital banking platform central.
PayPal Holdings (PYPL - Free Report) is also widening its cross-border reach. PayPal World now lets U.S. users pay at Weixin Pay merchants in China, while PYUSD is available across 70 markets. With second-quarter payment volume up 10% to $486.4 billion, PayPal has scale to test whether broader interoperability can support international growth over time.
NU’s Price Performance, Valuation and Estimates
Shares of NU have gained 13.6% over the past three months, outperforming the broader industry and the S&P 500 Composite.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings of 13.06X, above the industry’s 11.04X. It carries a Value Score of D.
Image Source: Zacks Investment Research
NU’s estimates for both 2026 and 2027 have increased over the past month. The figures also suggest a year-over-year increase of 38.7% and 35.1%, respectively.
Image Source: Zacks Investment Research
NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.