MELI2

Pagseguro Digital (PAGS)

DOUBTFUL — SCREEN DOES NOT PASSstock

Is MELI2 Halal?

Brazilian fintech — payment processing and lending.

What You Should Know

PagSeguro provides payment and financial services in Brazil. Core payment processing is permissible. Its audited 2025 statements report R$74,409.523 million of assets, R$21,384.710 million of banking issuances and borrowings, and R$20,410.512 million of revenue and income. Lending, early-payment and investment income remain material and require riba review.

⚠️ Concerns

  • PagBank lending products (riba)
  • Interest income from financial services
  • Receivables plus cash/assets is 77.84% under the asset screen
  • Brazilian regulatory and currency risk

Current quantitative Sharia screen

Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-14.

BRL · millions
Interest-bearing debt / assets
28.74%Within limit
Below 33.333% under FTSE Yasaar

21,384.71 / 74,409.523

Cash + interest-bearing securities / assets
3.29%Within limit
Below 33.333% under FTSE Yasaar

2,447.521 / 74,409.523

Receivables + cash / assets
77.84%Above limit
Below 50% under FTSE Yasaar

57,918.931 / 74,409.523

Non-compliant income / revenue
56.76%Above limit
No more than 5% under FTSE Yasaar

11,584.606 / 20,410.512

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 28.74%, liquidity/assets is 3.29%, receivables plus cash/assets is 77.84% and the conservative financial-income proxy is 56.76%; receivables and income exceed examined limits.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Receivables plus cash/assets is 77.84%, above the examined MSCI 33.33% total-assets limit; the mixed lending business remains qualitative context.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt/assets and identifiable liquidity/assets are below the examined 33% financial limits, but the mixed payment, credit and lending business screen remains incomplete; this is not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored.

Business-activity disclosure

PagSeguro provides payment processing and financial services in Brazil. Payment processing can be permissible, while PagBank lending, credit, early-payment and deposit products require riba and contract-level review.

Limitation: The filing reports transaction, financial and other financial income but does not classify every product or fee under a universal prohibited-revenue taxonomy.

Purification

Financial income is disclosed at 56.76% of total revenue and income, but it combines early-payment discounts, loan interest and investment income; no fixed scholar-approved purification percentage is asserted.

Inputs, assumptions and primary sources
  • Amounts are Brazilian reais millions from PagSeguro's audited 2025 consolidated statements.
  • Debt includes banking issuances of R$18,947.864 million and borrowings of R$2,436.846 million; customer checking accounts and deposits are not added to corporate debt.
  • Cash is R$1,857.507 million and financial investments are R$590.014 million; compulsory reserves and equity investments are excluded from identifiable securities.
  • Receivables include current and non-current accounts receivable of R$56,061.424 million, including card-issuer receivables.
  • Total revenue and income is R$20,410.512 million. Financial income of R$11,584.606 million is a conservative non-compliant-income proxy because it includes early-payment discounts, loan interest and interest on balances.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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