UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2023
Commission File Number: 001-38353
PagSeguro Digital Ltd.
(Name of Registrant)
Conyers Trust Company (Cayman) Limited,
Cricket Square, Hutchins Drive, P.O. Box 2681,
Grand Cayman, KY1-1111, Cayman Islands
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒    Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(1):
Yes ☐    No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(7):
Yes ☐    No ☒





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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
Contents




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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim balance sheet
As of June 30, 2023 and 2022
(All amounts in thousands of reais)

NoteJune 30, 2023December 31, 2022
Assets
Current assets
Cash and cash equivalents51,724,081 1,829,097 
Financial investments61,122,216 1,103,299 
Accounts receivable733,440,463 36,248,589 
Receivables from related parties
9
2,164 — 
Inventories32,790 13,281 
Tax receivable8421,455 410,801 
Other receivables154,611 162,011 
Total current assets36,897,780 39,767,078 
Non-current assets
Accounts receivable
7
918,074 745,546 
Receivables from related parties
9
13,393 — 
Judicial deposits49,559 44,855 
Deferred income tax and social contribution1897,749 99,411 
Other receivables25,072 18,509 
Investment1,811 1,651 
Property and equipment102,473,713 2,493,499 
Intangible assets112,359,147 2,158,773 
Total non-current assets5,938,518 5,562,244 
Total assets42,836,298 45,329,322 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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investors.pagseguro.com

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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim balance sheet
As of June 30, 2023 and 2022
(All amounts in thousands of reais)

NoteJune 30, 2023December 31, 2022
Liabilities and equity
Current Liabilities
Payables to third parties1216,631,637 17,988,139 
Deposits137,813,097 10,100,599 
Borrowings17291,901 — 
Derivative Financial Instruments2532,745 22,289 
Trade payables465,071 449,102 
Payables to related parties974,117 593,906 
Salaries and social security charges14276,454 292,778 
Taxes and contributions1583,269 89,779 
Provision for contingencies1661,848 46,233 
Deferred revenue124,978 126,042 
Other liabilities34,387 31,484 
Total current liabilities25,889,504 29,740,351 
Non-current liabilities
Payables to third parties12127,450 84,759 
Deposits132,219,405 1,894,689 
Payables to related parties9154,828 — 
Deferred income tax and social contribution181,666,395 1,564,228 
Provision for contingencies166,868 14,370 
Deferred revenue17,793 17,486 
Other liabilities228,504 171,313 
Total non-current liabilities4,421,243 3,746,845 
Total liabilities30,310,747 33,487,196 
Equity
Share capital1926 26 
Treasury shares19(505,638)(475,354)
Capital reserve196,062,304 6,102,573 
Retained earnings196,992,331 6,237,392 
Equity valuation adjustments19(22,372)(22,372)
Other comprehensive income19(1,100)(139)
Total equity12,525,551 11,842,126 
Total liabilities and equity42,836,298 45,329,322 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of income
For the three and six month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
Three-month periodSix-month period
NoteJune 30, 2023June 30, 2022June 30, 2023June 30, 2022
Revenue from transaction activities and other services212,166,009 2,255,687 4,317,025 4,310,270 
Financial income211,594,974 1,610,101 3,129,176 2,940,895 
Other financial income2164,929 44,770 129,443 86,344 
Total revenue and income3,825,912 3,910,558 7,575,644 7,337,509 
Cost of sales and services22(1,926,072)(1,900,300)(3,855,370)(3,639,679)
Selling expenses22(321,442)(499,101)(639,350)(979,751)
Administrative expenses22(203,391)(203,937)(374,745)(369,268)
Financial expenses22(795,627)(755,559)(1,608,598)(1,376,187)
Other income (expenses), net22(94,117)(108,950)(176,280)(113,441)
Profit before income taxes485,263 442,711 921,301 859,183 
Current income tax and social contribution18(42,239)530 (60,295)(28,121)
Deferred income tax and social contribution18(57,929)(76,317)(106,067)(114,218)
Income tax and social contribution(100,168)(75,787)(166,362)(142,339)
Net income for the period385,095 366,924 754,939 716,844 
Basic earnings per common share - R$201.1903 1.1059 2.3292 2.1645 
Diluted earnings per common share - R$201.1832 1.1012 2.3122 2.1513 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of comprehensive income
For the three and six month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais)
Three-month periodSix-month period
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
Net income for the period385,095 366,924 754,939 716,844 
Other comprehensive income that may be reclassified to the statement of income in subsequent periods
Currency translation adjustment(50)(126)(73)(718)
Loss on investments designated at fair value through OCI242 (752)351 (413)
Derivative Financial Instruments through OCI(2,098)(12,696)(1,695)(17,053)
Income tax and social contribution631 4,568 457 5,938 
Other comprehensive income for the period383,820 357,918 753,979 704,598 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of changes in equity
For the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais)
   Capital reserveProfit reserve   
 NoteShare capitalTreasury sharesCapital reserveShare-based long-term incentive plan (LTIP)Retained earningsEquity valuation adjustmentsOther comprehensive incomeTotal equity
         
On December 31, 2021 26 (285,011)5,828,754 247,532 4,732,624 (22,372)645 10,502,198 
          
Net income for the period — — — — 716,844 — — 716,844 
Currency translation adjustment — — — — — — (718)(718)
Gain on financial assets through OCI — — — — — — (273)(273)
Derivative Financial Instruments through OCI — — — — — — (11,255)(11,255)
Share based long term incentive plan (LTIP) — — — 76,147 — — — 76,147 
Acquisition of treasury shares — (93,613)— — — — — (93,613)
(LTIP) of treasury shares — 98,419 — (98,419)— — — — 
On June 30, 2022 26 (280,205)5,828,754 225,260 5,449,468 (22,372)(11,601)11,189,330 
        
Net income for the period— — — — 787,924 — — 787,924 
Currency translation adjustment— — — — — — 41 41 
Loss on financial assets through OCI— — — — — — 166 166 
Derivative Financial Instruments through OCI— — — — — — 11,255 11,255 
Share based long term incentive plan (LTIP)— — — 51,242 — — — 51,242 
Acquisition of treasury shares— (197,832)— — — — — (197,832)
(LTIP) of treasury shares— 2,683 — (2,683)— — — — 
On December 31, 2022 26 (475,354)5,828,754 273,819 6,237,392 (22,372)(139)11,842,126 
        
Net income for the period19    754,939   754,939 
Currency translation adjustment
19      (73)(73)
Gain on financial assets through OCI19      231 231 
Derivative Financial Instruments through OCI19      (1,119)(1,119)
Share based long term incentive plan (LTIP)19   73,116    73,116 
Acquisition of treasury shares19 (143,669)     (143,669)
(LTIP) of treasury shares19 113,385  (113,385)    
On June 30, 202326 (505,638)5,828,754 233,550 6,992,331 (22,372)(1,100)12,525,551 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of cash flows
For the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais)

Six-month period
NoteJune 30, 2023June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income taxes921,301 859,183 
Expenses (revenues) not affecting cash:
Depreciation and amortization
22
642,998 529,588 
Total Losses
22
248,203 520,198 
Accrual of provision for contingencies
13,378 10,522 
Share based long term incentive plan (LTIP)
73,116 76,147 
Loss on disposal of property, equipment, intangible and investment assets
130,927 104,958 
Derivative Financial Instruments, net
(10,915)— 
Interest accrued
208,663 554,438 
Other (income) cost, net
1,214 (7,715)
Changes in operating assets and liabilities
Accounts receivable
441,202 (9,956,814)
Financial investments (mandatory guarantee)
213,861 (209,221)
Inventories
(19,509)1,647 
Taxes recoverable
46,586 88,802 
Other receivables
14,633 (17,721)
Deferred revenue
(758)(22,413)
Other liabilities
7,333 (34,613)
Payables to third parties
(1,313,813)795,991 
Trade payables
14,581 (73,525)
Receivables from (payables to) related parties
(406,648)(289,506)
Deposits
(1,314,997)6,104,371 
Salaries and social charges
(16,324)(8,294)
Taxes and contributions
(24,213)14,524 
Provision for contingencies
(9,548)(5,994)
(138,729)(965,447)
Income tax and social contribution paid
(59,086)(79,684)
Net interest income received (paid)
1,060,125 1,563,152 
NET PROVIDED BY OPERATING ACTIVITIES862,310 518,019 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
10
(425,773)(780,456)
Purchases and development of intangible assets
11
(512,736)(475,758)
Redemption (Acquisition) of financial investments
 
(176,254)(3,779)
NET CASH USED IN INVESTING ACTIVITIES(1,114,763)(1,259,993)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings
17
300,000 250,000 
Payment of borrowings
 (7,015)
Acquisition of treasury shares
19
(143,669)(93,613)
Payment of leases
10
(8,894)(9,775)
NET CASH PROVIDED BY FINANCING ACTIVITIES147,437 139,597 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(105,016)(602,376)
Cash and cash equivalents at the beginning of the period
 5
1,829,097 1,794,362 
Cash and cash equivalents at the end of the period
 5
1,724,081 1,191,986 

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)


1.  General information
PagSeguro Digital Ltd., (“PagSeguro Digital” or the “Company”), is a holding company with its principal executive offices located in Cayman Islands, subsidiary of Universo Online S.A. (“UOL”), referred to, together with its subsidiaries, as the “PagSeguro Group”, and was incorporated on July 19, 2017. A total of 99,99% of the shares of PagSeguro Internet Instituição de Pagamento S.A. (“PagSeguro Brazil”) were contributed to PagSeguro Digital on January 4, 2018 and PagSeguro Digital maintains control of PagSeguro Brazil.
PagSeguro Brazil is a privately held corporation established on December 20, 2006, and engages in providing financial technology solutions and services and corresponding related activities, focused principally on micro-merchants and small and medium-sized businesses (“SMEs”).
In June 2022, Boa Compra Tecnologia Ltda,, changed its name to PagSeguro Tecnologia Ltda, (“PagSeguro Tecnologia”), as part of a marketing strategy to bring the entity closer to PagSeguro’s brand.
In January 2023, Pagseguro Biva Serviços Financeiros Ltda., incorporated Pagseguro Biva Correspondente Bancário Ltda.
The subsidiaries of PagSeguro Digital are PagSeguro Brazil, PagSeg Participações Ltda. (“PagSeg”), BS Holding Financeira Ltda. (“BS Holding”) and PSHC, The PagSeguro Group subsidiaries are as follows:
PagSeguro Brazil subsidiaries are PagSeguro Biva Securitizadora de Créditos Financeiras S.A. (“Biva Sec”), Fundo de Investimento em Direitos Creditórios – PagSeguro (“FIDC”), Wirecard Brazil Instituição de Pagamento S.A. (“MOIP”), Registra Seguro S.A. (“RegistraSeguro”) and Concil Inteligência em Conciliação S.A. (“Concil”).
PagSeg subsidiaries are Net+Phone Telecomunicações Ltda. (“Net+Phone”), Pagseguro Tecnologia, BCPS Online Services Lda. (“BCPS”), CDS Serviços Financeiros Ltda. (“CDS”), Pagseguro Biva Serviços Financeiros Ltda. (“Biva Serviços”) and PagBank Participações Ltda. (“PagBank”).
PagBank subsidiaries are Tilix Digital Ltda. (“TILIX”), YAMÍ Software & Inovação Ltda. (“YAMÍ”) and Zygo Serviços de Tecnologia S.A.(“ZYGO”).
PSHC subsidiaries are Pagseguro Chile SPA (“Pagseguro Chile), Pagseguro Colombia S.A.S (“Pagseguro Colombia), PSGP México S.A de C.V. (“PSGP Mexico”) and Pagseguro Peru S.A.C. (“Pagseguro Peru”).
BS Holding subsidiary are BancoSeguro S.A. (“Bancoseguro”) and Paginvest CTVM Ltda. (“Paginvest”).

These consolidated interim financial statements include Pagseguro Brazil, PagSeg, PSHC, BS Holding and corresponding subsidiaries.
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)

2. Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies

2.1.    Basis of preparation of the condensed consolidated interim financial information
These unaudited condensed consolidated interim financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The consolidated interim financial statements are presented in thousands of Brazilian reais, unless otherwise indicated, which is the functional currency of PagSeguro Group.
These unaudited condensed consolidated interim financial statements for six-month period ended June 30, 2023 were authorized for issuance by the PagSeguro Digital’s Board of Directors on August 15, 2023.
These unaudited condensed consolidated interim financial statements for the six-month periods ended June 30, 2023 have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” as issued by the IASB and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties.
These unaudited condensed consolidated interim financial statements do not include all the notes of the type normally included in an annual consolidated financial statement. Accordingly, this report is to be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2022 (the “Annual Financial Statements”).
The accounting policies and critical accounting estimates and judgments adopted are consistent with those of the previous financial year and corresponding interim reporting period.
2.2.    New accounting standards adopted in 2023
The accounting policies adopted in the preparation of the consolidated interim financial statements for the period ended June 30, 2023 are consistent with those adopted for the year ended December 31, 2022, except for the changes required by the pronouncements, interpretations and standards which became effective on January 1, 2023, as described below.
IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. It requires a current measurement model where estimates are remeasured in each reporting period, Contracts are measured using the building blocks of discounted probability-weighted cash flows, an explicit risk adjustment and a contractual service margin (CSM) representing the unearned profit of the contract which is recognized as revenue over the coverage period.


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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)

2.2.    New accounting standards adopted in 2023 – Continued
The standard allows a choice between recognizing changes in discount rates either in the statement of profit or loss or directly in other comprehensive income. The choice is likely to reflect how insurers account for their financial assets under IFRS 9. An optional, simplified premium allocation approach is permitted for the liability for the remaining coverage for short duration contracts, which are often written by non-life insurers.
There is a modification of the general measurement model called the ‘variable fee approach’ for certain contracts written by life insurers where policyholders share in the returns from underlying items. When applying the variable fee approach, the entity’s share of the fair value changes of the underlying items is included in the CSM. The results of insurers using this model are therefore likely to be less volatile than under the general model.
Targeted amendments made in July 2020 aimed to ease the implementation of the standard by reducing implementation costs and making it easier for entities to explain the results from applying IFRS 17 to investors and others. The amendments also deferred the application date of IFRS 17 to 1 January 2023. The group did not identify material impacts under the new IFRS.
Amendment to IAS 1 "Presentation of Financial Statements": issued in May 2020, with the objective of clarifying that liabilities are classified as current or non-current, depending on the rights that exist at the end of the period. The classification is not affected by the entity’s expectations or events after the reporting date (eg, receipt of a waiver or breach of covenant). The amendments also clarify what "settlement" of a liability refers to under IAS 1. The amendments to IAS 1 are effective as of January 1, 2023. The group did not identify material changes in the financial results.
Amendment to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies: in February 2021 the IASB issued a new amendment to IAS 1 on disclosure of "material" accounting policies rather than "significant" accounting policies. The amendments define what "“material accounting policy information" is and explain how to identify it. It also clarifies that immaterial accounting policy information does not need to be disclosed, but if so, it should not obscure the relevant accounting information. To support this change, the IASB also amended the "IFRS Practice Statement 2 Making Materiality Judgments" to provide guidance on how to apply the concept of materiality to accounting policy disclosures. This amendment is effective as of January 1, 2023. The group did not identify material changes in the financial results.
Amendment to IAS 8 - Accounting Policies, Change in Estimate and Error Rectification: the amendment issued in February 2021 clarifies how entities must distinguish changes in accounting policies from changes in accounting estimates, as changes in accounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied retrospectively to past transactions and other past events, as well as to the current period. This amendment is effective as of January 1, 2023. The group did not identify material changes in the financial results.
Amendment to IAS 12 - Income Taxes: the amendment issued in May 2021 requires entities to recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences.
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)

2.2.    New accounting standards adopted in 2023 – Continued
This typically applies to lease transactions (right-of-use assets and lease liabilities) and decommissioning and restoration obligations, as an example, and will require the recognition of additional deferred tax assets and liabilities. This amendment is effective as of January 1, 2023. The group did not identify material changes in the financial results.
3. Consolidation of subsidiaries


As of June 30, 2023
CompanyAssetsLiabilitiesEquityNet income (loss) for the periodOwnership - %Level
Pagseguro Brazil27,728,19117,874,3609,853,831527,26899.99Direct
BS Holding800,645417800,22834,57399.99Direct
Pagseg Participações813,6021,496812,10531,96599.99Direct
PSHC3,5973,713(116)(1,845)99.99Direct
Pagbank Participações178,01021,915156,09660699.99Indirect
Paginvest Corretora15,53113715,39438299.99Indirect
Net+Phone478,283105,934372,34929,93599.99Indirect
Pagseguro Tecnologia336,743108,189228,554(196)99.99Indirect
BCPS1,880(26)1,9065899.99Indirect
BSEC1,763,8531,735,69028,16313,65199.99Indirect
Biva Serviços44,17373143,4421,56299.99Indirect
FIDC5,120,793791,1294,329,6641,183,357100.00Indirect
TILIX48,4911,54146,9501,91899.99Indirect
BancoSeguro20,646,27019,882,946763,32433,903100.00Indirect
Yamí34,65792833,729(236)99.99Indirect
Registra Seguro5,000234,977(0)99.99Indirect
CDS9,8621449,718699.99Indirect
Zygo60,57592759,647(845)99.99Indirect
Moip533,929417,790116,139(14,652)100.00Indirect
Concil10,8972,5738,324(168)100.00Indirect
Pagseguro Chile (i)653802(149)(570)100.00Indirect
Pagseguro Colombia (i)1,2341,328(94)(346)100.00Indirect
PSGP México (i)7421,129(386)(505)100.00Indirect
Pagseguro Peru (i)2,4122,899(487)(635)100.00Indirect

(i)Entities with very limited operation.




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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)

3.    Consolidation of subsidiaries – Continued
As of December 31, 2022 (except for net income, that is presented to six-month period ended June 30, 2022)
CompanyAssetsLiabilitiesEquityNet income (loss) for the periodOwnership - %Level
Pagseguro Brazil28,149,50318,821,9519,327,552495,14799.99Direct
BS Holding771,0115,198765,81329,44299.99Direct
Pagseg Participações781,745871780,87433,19799.99Direct
PSHC3,2691,3651,904(355)99.99Direct
Pagbank Participações165,2639,775155,490(4,812)99.99Indirect
Paginvest (i)2,01642,012-99.99Indirect
Net+Phone467,890125,476342,41424,18699.99Indirect
Pagseguro Tecnologia363,377134,468228,90911,37899.99Indirect
BCPS1,916(41)1,957(83)99.99Indirect
BSEC1,840,0461,825,45914,5861,06099.99Indirect
Biva Serviços68,16426,24041,9242,61499.99Indirect
Biva Corban1,248(16,181)17,4281,31199.99Indirect
FIDC5,122,004792,3914,329,613950,815100.00Indirect
TILIX46,88834,35712,53129199.99Indirect
BancoSeguro22,238,33821,509,017729,32119,508100.00Indirect
Yamí34,79533,3311,46526499.99Indirect
Registra Seguro5,000234,977(4)99.99Indirect
CDS10,1924799,713(55)99.99Indirect
Zygo70,94010,44860,492(7,883)99.99Indirect
Moip686,496555,713130,783(7,832)100.00Indirect
Concil11,3152,8238,492(4,887)100.00Indirect
Pagseguro Chile (i)1,092684408-100.00Indirect
Pagseguro Colombia (i)968751217(350)100.00Indirect
PSGP México (i)1,118973145-100.00Indirect
Pagseguro Peru (i)906772134-100.00Indirect
(i)Entities with very limited or no operation.

The operational context of the subsidiaries is to be read in conjunction with the annual financial statements for the year ended December 31, 2022.
4. Segment reporting

Operating segments are determined based on the information reported and reviewed by the chief operating decision maker (“CODM”). The Board of Directors has been identified as the CODM and is responsible for allocating resources and assessing the performance of the business and to make PagSeguro Group’s strategic decisions.
Considering that all decisions are based on consolidated reports, and that all decisions related to strategic and financial planning, purchases, investments, and the allocation of funds are made on a consolidated basis, the PagSeguro Group and its subsidiaries operate in a single segment, as financial service agents.
Main companies of PagSeguro Group are domiciled in Brazil and have revenue arising from local customers and customers located abroad. The main revenue is related to sales from the domestic market. The revenue from international market represents 0,4% and 0,4% for the three and six-month periods ended June 30, 2023, respectively (0,9% and 1,1% for three and six-month periods ended June 30, 2022, respectively).
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)

5. Cash and cash equivalents

June 30, 2023 December 31, 2022
Short-term bank deposits442,838761,044
Short-term investment1,281,2431,068,053
1,724,0811,829,097

Cash and cash equivalents are held for the purpose of meeting short-term cash needs and include cash on hand, deposits with banks and other short-term highly liquid investments with original maturities of three-month or less and with immaterial risk of change in value.
Short-term bank deposits are mainly represented by amounts to cover instant payments (PIX), cash on ATMs and clients’ payments.
Short-term investments consist mainly of investments in Brazilian Treasury Bonds (“LFTs”) with an average return of 100% of the Basic Interest Rate (SELIC, 13,75% per year on June 30, 2023 and December 31, 2022).

6. Financial investments

Consists of investments in LFTs, in the amount of R$1,122,216 as of June 30, 2023 (R$1,103,299 as of December 31, 2022) with an average return of 100% of the Basic Interest Rate (SELIC, 13,75% per year as of June 30, 2023 and December 31, 2022), invested to comply with certain requirements for authorized payment institutions as set forth by the Brazilian Central Bank regulation. This financial asset was classified at fair value through other comprehensive income. Unrealized accumulated gain on LFTs in six-month period ended June 30, 2023 totaled R$90 (gain of R$231 in the six-month period ended June 30, 2023).
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
7. Accounts receivable
June 30, 2023 December 31, 2022
VisaMasterHipercardEloAmexTotal VisaMasterHipercardEloAmexTotal
Legal obligors
Itaú1,578,2255,144,991544,2387,267,4541,920,1515,268,454649,5867,838,191
Nubank4,287,2984,287,2984,050,3764,050,376
Bradesco2,106,907210,4601,092,155400,4463,809,9682,924,890242,7081,228,553440,5354,836,686
Banco do Brasil1,630,515277,094527,8172,435,4262,008,045359,572553,3212,920,938
Santander689,3661,717,85214,9802,422,198829,7142,564,86811,0213,405,603
Banco Carrefour141,6081,008,5481,150,156142,392973,9151,116,307
Porto Seguro694,836235,684930,520708,008216,926924,934
Banco C6894,805894,805825,958825,958
CEF305,487139,451434,779879,717369,282180,490453,0431,002,815
Sicredi440,469427,572868,041404,825372,297777,122
Banco Cooperativo Sicoob817,261817,261644,039644,039
Banco Bradescard530,723128,64116,564675,928470,100113,10015,613598,813
Banco Inter597,144597,144550,070550,070
Banco XP473,357473,357406,986406,986
Will Financeira424,838424,838349,453349,453
Midway242,387123,329365,716268,221124,417392,638
Banco Votorantim309,414309,414358,072358,072
Realize159,697172,030331,727166,754185,371352,125
Banco Pan51,468188,192726240,38668,683246,11210314,805
Pernambucanas237,938237,9381,017186,556187,573
Credz186,475186,475176,030176,030
Digio184,9981,071186,070180,936114,454195,391
Banco Original171,898171,898246,976246,976
Bancoob162,513162,513112,743208112,951
Banrisul30,013131,521161,53436,400133,065169,465
Cred-system155,495155,495153,681153,681
Mercado Pago147,184147,184143,073143,073
Others1,187,871604,848168,6647131,962,096988,354795,339170,1552,1311,955,979
Total card issuers (i)10,944,09918,168,366544,2382,479,714416,13932,552,55612,325,58718,956,485649,5862,621,705453,68735,007,050
Current card issuers32,376,19434,884,835
Non - Current card issuers176,362122,215
Getnet4,71252,597
Other5,58010,963
Total acquirers (ii)10,29263,560
      
Loans, net111,755221,449
Credit card receivables, net597,456661,226
Payroll loans and other, net1,084,413852,425
Total credit receivables, net (iii)1,793,6241,735,100
Current1,051,9121,111,769
Non - Current741,713623,331
Other accounts receivables (iv)2,065188,425
Total accounts receivable10,944,09918,168,366544,2382,479,714416,13934,358,53712,325,58718,956,485649,5862,621,705453,68736,994,135
Current33,440,46336,248,589
Non - Current918,074745,546
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
7. Accounts receivable (Continued)
(i) Card issuers: receivables derived from transactions where PagSeguro Brazil acts as the financial intermediary in operations with the issuing banks, related to the intermediation agreements between PagSeguro Brazil and Visa, Mastercard, Hipercard, Amex or Elo. However, PagSeguro Brazil’s contractual accounts receivable are with the financial institutions, which are the legal obligors on the accounts receivable payment. Additionally, amounts due within 27 days of the original transaction, including those that fall due with the first installment of installment receivables, are guaranteed by Visa, Mastercard, Hipercard, Amex or Elo, as applicable, if the legal obligors do not make the payment.
(ii) Acquirers: refers to card processing transactions to be received from the acquirers, which are a third parties acting as financial intermediaries between the issuing bank and PagSeguro Brazil.
(iii) Total credit receivables are presented net of the ECL (“expected credit losses”), are measured according to the IFRS 9, using: Exposure at Default (EAD) related to the exposed credit risk at default; Probability of Default (PD) related to the probability of the counterparty not meeting its contractual payment obligations; and Loss Given Default (LGD) related to the percentage of the exposure that is not expected to be recovered in the event of default, In addition to the methodology for calculating the allowance for impairment (EAD x PD x LGD). Pagseguro takes into consideration the forward-looking information and assumptions as the historical loss experienced at individual transactions level, credit quality and guarantees, economic factors and estimated future cash flows, which could impact the calculation model for provisioning expected credit losses
(iv) Refers to other dispersed receivables from legal obligors.
The maturity analysis of accounts receivables is as follows:
June 30, 2023 December 31, 2022
Past due915,081 1,073,275 
Due within 30 days11,314,052 13,784,017 
Due within 31 to 120 days13,450,111 13,743,397 
Due within 121 to 180 days4,340,589 4,422,424 
Due within 181 to 360 days4,236,444 4,210,024 
Due after 360 days918,074 746,612 
Expected credit losses(815,814)(985,614)
34,358,537 36,994,135 

The maturity analysis of credit receivables as of June 30, 2023 and December 31, 2022 are as follows:
June 30, 2023
LoansCredit card receivablesPayroll loans and othersTOTAL
Past due539,201 370,099 5,781 915,081 
Due within 30 days15,192 245,838 40,968 301,996 
Due within 31 to 120 days40,036 137,369 98,927 276,332 
Due within 121 to 180 days13,985 81,998 61,769 157,752 
Due within 181 to 360 days12,197 42,341 153,782 208,320 
Due after 360 days4,396 8,238 737,321 749,955 
625,007 885,883 1,098,548 2,609,438 
Expected credit losses(513,252)(288,427)(14,135)(815,814)
Receivables net of ECL111,755 597,456 1,084,413 1,793,624 
December 31, 2022
LoansCredit card receivablesPayroll loans and othersTOTAL
Past due468,236 603,352 1,687 1,073,275 
Due within 30 days35,435 232,013 24,332 291,780 
Due within 31 to 120 days102,413 146,409 72,599 321,421 
Due within 121 to 180 days49,642 86,055 40,621 176,318 
Due within 181 to 360 days70,218 43,615 119,691 233,524 
Due after 360 days17,435 1,066 605,895 624,396 
743,379 1,112,510 864,825 2,720,714 
Expected credit losses(521,929)(451,285)(12,400)(985,614)
Receivables net of ECL221,450 661,225 852,425 1,735,100 
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
7. Accounts receivable (Continued)
For the credit receivables the weighting of objective factors plus the analysis of the coverage percentage of accessory guarantees leads to the customer rating this allows the grouping of customers with similar credit risks and classification into one of the following stages as suggested by IFRS9:
June 30, 2023
Credit AmountExposure off balance
credit limits not used
Expected Credit Losses
Loans
stage 154,914  (8,672)
stage 210,150  (6,166)
stage 3559,943  (498,414)
Credit card receivables
stage 1368,180 684,480 (7,370)
stage 2181,353 243,083 (19,380)
stage 3336,350 14,246 (261,677)
Payroll loans and other (i)
stage 11,061,915  (10,627)
stage 28,267  (261)
stage 328,365  (3,247)
TOTAL2,609,438 941,809 (815,814)
December 31, 2022
Credit AmountExposure off balance
credit limits not used
Expected Credit Losses
Loans
stage 1173,407 — (34,883)
stage 224,223 — (12,982)
stage 3545,749 — (474,065)
Credit card receivables
stage 1439,544 663,059 (17,202)
stage 2205,356 214,282 (34,756)
stage 3467,611 9,033 (399,326)
Payroll loans and other (i)
stage 1844,075 — (6,656)
stage 26,643 — (201)
stage 314,106 — (5,544)
TOTAL2,720,714 886,374 (985,614)
(i)This line of credit is mainly related to payroll loans offered to retirees, public sector employees and FGTS early prepayment, therefore are secured operation and less prone to expected credit losses.









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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
7. Accounts receivable (Continued)
The movement in the allowance for expected credit losses of credit receivables is as follows:

Expected credit lossesLoansCredit card receivables (i)Payroll loans and otherTotal
December 31, 2021256,927 174,046 6,166 437,139 
Additions (Reversals), net265,002 277,239 11,351 553,592 
Write-Off— — (5,117)(5,117)
December 31, 2022521,929 451,285 12,400 985,614 
Additions (Reversals), net(8,677)50,379 4,919 46,621 
Write-Off (213,237)(3,184)(216,421)
June 30, 2023513,252 288,427 14,135 815,814 
(i) Based on the PagSeguro credit risk classification model, which assesses the risk of insolvency and default of counterparties related to credit receivables, in the six month period ended in June 2023, the Company carried out a partial write-off of credit card receivables, for cases in which the Company does not expect to receive these amounts. The credit card receivables written-off in the amount of R$ 213,237 against the related provision for ECL recognized in previous periods.
8. Tax receivable
June 30, 2023 December 31, 2022
Income tax and social contribution (i)365,642358,232
Social integration program (ii)37,13635,488
Other18,67717,081
421,455410,801

(i)Refers mainly to withholding taxes from income tax and social contribution.
(ii)Refers to Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) recoverable on transaction activities and other services.
9. Related-party balances and transactions

i)Balances and transactions with related parties
 June 30, 2023December 31, 2022
 ReceivablesPayablesPayables
Immediate parent  
UOL - sales of services (a)
 15,548 16,170 
UOL - shared service costs (b)
 10,390 11,790 
UOL – Deposits (c)
 52,338 312,295 
Affiliated companies
UOL Edtech Tecnologia Educacional S.A. - Deposits (c)
  122,197 
Web Jump Design em Informática Ltda. - Deposits (c)
 5,072 12,372 
Ingresso.com Ltda. - Deposits (c)
 12,558 21,833 
Invillia Desenvolvimento de produtos Digitais Ltda - Deposits (c)
 21,564 60,096 
Invillia Holding Ltda. - Deposits (c)
 3,104 1,849 
UOL Cursos Tec. Ed. Ltda. - Deposits (c)
 74,308 — 
Compasso Tecnologia Ltda. - sales of services (d)
 5,310 — 
Compasso UOL S.A.- sales of services (d)
 10,573 12,624 
Invillia Desenvolvimento de produtos Digitais Ltda- sales of services (d)
 11,142 12,897 
Digital Services UOL S.A.- borrowing (e)
15,557 104 244 
Others
 6,934 9,539 
 15,557 228,945 593,906 
Current2,164 74,117 593,906 
Non – Current13,393 154,828 — 
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
9.Related-party balances and transactions (continued)
(a)Sales of services refer mainly to the purchase of advertising services from UOL.
(b)Shared services costs mainly related to payroll costs that are incurred by the parent company UOL and are charged to PagSeguro Group.
(c)Certificate of deposits (CD) acquired by related parties from BancoSeguro with interest rate between 104% to 110% per year of CDI. The maturity analysis is as follows:
June 30, 2023December 31, 2022
Due within 31 to 120 days5,269 49,094 
Due within 121 to 180 days9,076 28,604 
Due within 181 to 360 days 455,488 
Due to 361 days or more days154,828 — 
169,173 533,186 
(d)This payable refers mainly to colocation, development of software and cloud services.
(e)This receivable refer to borrowing made from Biva Sec with interest rate of 100% of CDI plus 2.5% per year.
ii)Revenue and expense from transactions with related parties
Three-month periodSix-month period
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
RevenueExpenseRevenueExpenseRevenueExpenseRevenueExpense
Immediate parent
UOL - shared service costs (a)
23,29833,61851,05356,084
UOL - sales of services (b)
77416,71176722,5221,56735,5151,56044,836
UOL - deposits (c)
5,8952,95515,2197,460
Affiliated companies
UOL Edtech Tecnologia – deposits (c)
8,4153238,415
Web Jump Design em Informática Ltda. - Deposits (c)
273810
Ingresso.com Ltda. - Deposits (c)
5111,015
UOL Cursos Tec. Ed. Ltda. - Deposits (c)
2,49945,143
Invillia Desenvolvimento de produtos Digitais Ltda - Deposits (c)
3,5133,513
Digital Services UOL S.A. - sales of services (d)
1115961666901,214
Compasso Tecnologia Ltda. - sales of services (d)
2,4325303,965530
Compasso UOL S.A.- sales of services (d)
36,32932,23979,22863,928
Invillia Desenvolvimento de produtos Digitais Ltda - sales of services (d)
4393,388
Digital Services UOL S.A. - borrowing (e)
166
UOL Cursos Tec. Ed. Ltda. – sales of services (f)
4
Others
2522,5432262,0024563,8624393,778
1,19694,554993102,8772,193203,7241,999186,246

(a)Shared services costs mainly related to payroll costs sharing that are incurred by the parent company UOL and are charged to PagSeguro. Such costs are included in administrative expenses.
(b)Sale of services expenses are related to advertising services from UOL and revenue is related to intermediation fees.
(c)Expenses are related to Certificate of Deposits (CD) from BancoSeguro. UOL Edtech Tecnologia was incorporated in 2023 by Passei Direto S.A..
(d)Expenses related to colocation and cloud services.
(e)Revenue refer to borrowing made from Biva Sec with interest rate of 100% of CDI plus 2.5% per year.
(f)Revenue refer to merchant discount rate.

iii)Key management compensation
Key management compensation includes short and long-term benefits of PagSeguro Brazil's executive officers. The short and long-term compensation related to the executive officers for the three and six-month periods ended June 30, 2023 amounted to R$10,672 and R$19,403 (R$7,693 and R$18,666 for the three and six-month periods ended June 30, 2022).
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
10. Property and equipment

a)Property and equipment are composed as follows:
June 30, 2023
CostAccumulated depreciationNet
Data processing equipment215,595(79,574)136,021
Machinery and equipment (i)3,516,804(1,305,054)2,211,750
Buildings Leasing (ii)151,941(52,536)99,405
Other40,810(14,273)26,537
Total3,925,150(1,451,437)2,473,713
December 31, 2022
CostAccumulated depreciationNet
Data processing equipment214,279(68,274)146,005
Machinery and equipment (i)3,382,067(1,115,120)2,266,947
Buildings Leasing (ii)102,145(43,901)58,244
Other33,692(11,389)22,303
Total3,732,183(1,238,684)2,493,499

b)The changes in cost and accumulated depreciation were as follows:
Data processing equipmentMachinery and equipment (i)Buildings Leasing (ii)OtherTotal
On December 31, 2021     
Cost106,6432,798,82394,04829,9093,029,423
Accumulated depreciation(51,294)(654,360)(26,928)(7,789)(740,371)
Net book value55,3492,144,46367,12022,1202,289,052
On December 31, 2022
Opening balance
Cost107,636583,2448,0973,783702,760
Purchases
109,245981,4628,0975,3521,104,156
Disposals
(1,609)(398,218)-(1,569)(401,396)
Depreciation(16,980)(460,760)(16,973)(3,600)(498,313)
Depreciation
(17,092)(647,318)(16,973)(3,851)(685,234)
Disposals
112186,558-251186,921
Net book value146,0052,266,94758,24422,3032,493,499
 
On December 31, 2022 
Cost214,2793,382,067102,14533,6923,732,183
Accumulated depreciation(68,274)(1,115,120)(43,901)(11,389)(1,238,684)
Net book value146,0052,266,94758,24422,3032,493,499
On June 30, 2023
Opening balance
Cost1,316134,73749,7967,118192,967
Purchases
1,316415,85951,8348,598477,607
Disposals/Provisions (iii)
-(281,122)(2,038)(1,480)(284,640)
Depreciation(11,300)(189,934)(8,635)(2,884)(212,753)
Depreciation
(11,300)(333,670)(9,429)(3,174)(357,573)
Disposals/Provisions (iii)
-143,736794290144,820
Net book value136,0212,211,75099,40526,5372,473,713
 
On June 30, 2023 
Cost215,5953,516,804151,94140,8103,925,150
Accumulated depreciation(79,574)(1,305,054)(52,536)(14,273)(1,451,437)
Net book value136,0212,211,75099,40526,5372,473,713

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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
10.Property and equipment (continued)
(i)Net book value of POS devices is R$2,160,381 (R$2,212,692 as of December 31, 2022), which are depreciated over 5 years, The depreciation of POS in the six-month period ended June 30, 2023, amounted to R$330,130 (R$305,410 in the six-month period ended June 30, 2022), On June 30, 2023. PagSeguro have contractual obligations to acquire POS devices in the amount of R$393,369 (R$860,321 as of December 31, 2022).
(ii)As of June 30, 2023, PagSeguro had a lease liability presented in other current liabilities in the amount of R$15,986 (R$18,704 as of December 31, 2022) and as non-current liability in the amount of R$84,956 (R$39,867 as of December 31, 2022), this increase is mainly related to the extension of leasing agreement for more 4 years. For the six-month ended June 30, 2023, the Company incurred in financial expenses related to these leases of R$8,894 (R$9,775 in the six month period ended June 30, 2022).
(iii)The net book value of disposals is R$139,820 of which R$284,640 are cost and R$144,820 are accumulated depreciation, During the six-month period ended June 30, 2023, the Company revised its business strategy towards a specific group of merchants and observed no future economic benefit is expected from them, resulting in the provision of POS devices allocated to these merchants in the net book value of R$126,323 (R$257,258 are cost and R$130,935 are accumulated depreciation).
11. Intangible assets

a)Intangible assets are composed as follows:
June 30, 2023
CostAccumulated amortizationNet
Expenditures related to software and technology (i)3,399,830(1,435,600)1,964,230
Software licenses274,378(123,266)151,112
Goodwill209,908209,908
Other67,768(33,871)33,897
3,951,884(1,592,737)2,359,147
December 31, 2022
CostAccumulated amortizationNet
Expenditures related to software and technology (i)2,904,505(1,155,187)1,749,318
Software licenses257,096(97,698)159,398
Goodwill209,908209,908
Other67,768(27,619)40,149
3,439,277(1,280,504)2,158,773
(i)The PagSeguro Group capitalizes expenses incurred with the development of platforms, which are amortized over their useful lives of approximately five years.
The goodwill is allocated to the Cash Generating Units (CGUs) in each of the acquired companies that generated the goodwill and is demonstrated below:
June 30, 2023December 31, 2022
Moip148,218148,218
Concil20,73120,731
Biva Serviços14,62714,627
Banco Seguro12,61212,612
Pagseguro Tecnologia6,5706,570
Zygo5,7685,768
Yami1,3821,382
Total209,908209,908
The recoverable amount of a CGU is determined based on value-in-use calculations, Company tested the recoverability of these assets for the year ended December 31, 2022 and concluded that the book balances of goodwill recorded are recoverable, for June 30, 2023 the Company evaluated and no new indicatives are came, therefore, no provision for impairment of was accounted for.
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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
11. Intangible assets (continued)
The changes in cost and accumulated amortization were as follows:
Expenditures with software and technologySoftware licensesGoodwillOtherTotal
On December 31, 2021
Cost2,016,541 196,854 209,908 67,768 2,491,071 
Accumulated amortization(772,804)(53,129)— (14,962)(840,895)
Net book value1,243,737 143,725 209,908 52,806 1,650,176 
On December 31, 2022
Cost887,964 60,242 — — 948,206 
Additions (i)
979,734 60,603 — — 1,040,337 
Disposals (ii)
(91,770)(361)— — (92,131)
Amortization(382,383)(44,569)— (12,657)(439,609)
Amortization
(430,358)(44,903)— (12,657)(487,918)
Disposals (ii)
47,975 334 — — 48,309 
Net book value1,749,318 159,398 209,908 40,149 2,158,773 
On December 31, 2022
Cost2,904,505 257,096 209,908 67,768 3,439,277 
Accumulated amortization(1,155,187)(97,698)— (27,619)(1,280,504)
Net book value1,749,318 159,398 209,908 40,149 2,158,773 
On June 30, 2023
Cost495,325 17,282   512,607 
Additions (i)
495,454 17,282 — — 512,736 
Disposals
(129)— — — (129)
Amortization(280,413)(25,568) (6,252)(312,233)
Amortization
(280,487)(25,568)— (6,252)(312,307)
Disposals
74 — — — 74 
Net book value1,964,230 151,112 209,908 33,897 2,359,147 
On June 30, 2023
Cost3,399,830 274,378 209,908 67,768 3,951,884 
Accumulated amortization(1,435,600)(123,266) (33,871)(1,592,737)
Net book value1,964,230 151,112 209,908 33,897 2,359,147 
(i)Refers to several and diverse expenditures with software and technology, mainly related to customer experience functionalities, such as digital payment and digital banking account.
12. Payables to third parties

June 30, 2023December 31, 2022
Payables to merchants (i)8,501,3189,405,429
Banking accounts (ii)7,496,1497,470,978
Merchant's payment account (iii)761,6201,196,491
16,759,08718,072,898
Current16,631,63717,988,139
Non - Current127,45084,759

(i)Refers mainly to transactions of sales and services to settle to merchants’ net of PagSeguro’s revenue.
(ii)Refers to the balance of the clients maintained in their banking accounts that are invested by the client in Certificate of Deposits with 30 days of maturity and interest average rate of 73% of CDI (69% of CDI in December 31, 2022).
(iii)Refers to mechant’s payment account that PagSeguro acquire treasury bonds to comply with certain requirements as mentioned in note 6.
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investors.pagseguro.com

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PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of June 30, 2023 and for the six-month periods ended June 30, 2023 and 2022
(All amounts in thousands of reais unless otherwise stated)
13. Deposits

June 30, 2023December 31, 2022
Certificate of Deposit (i)8,273,4029,806,062
Interbank deposits (ii)1,759,1002,101,152
Corporate securities88,074
10,032,50211,995,288
Current7,813,09710,100,599
Non – Current2,219,4051,894,689
(i)The average return is 112% of CDI (117% of CDI in December 31, 2022). From the total amount, R$1,361,589 (R$2,080,779 in December 31, 2022) refer to certificate of deposits with interest rates correlated to the IPCA (Brazilian inflation rates) and fixed rates. For these certificates of deposit, the Company entered into derivative financial instruments (“Swaps”) with the specific objective of protecting deposit from fluctuations arising from inflation, changing IPCA and fixed rates for CDI rates. In June 2023, the Company recorded liabilities of Swaps in the amount of R$11,366 (R$22,289 in December 31, 2022).
(ii)The average return is 111% of CDI (111% of CDI in December 31, 2022).
The maturity analysis of deposits based on due date of the agreements (disregarding that some can be withdrawn at any time, which is limited to the contracts with a due date of less than 360 days) is as follows:
June 30, 2023December 31, 2022
Due within 30 days516,874864,864
Due within 31 to 120 days2,602,2373,253,826
Due within 121 to 180 days855,050