While it's still profitable overall, the margin compression seems to show PagSeguro can't quite pass on all of its higher costs to its merchants, so it may lack pricing power to offset inflation. Brazilian inflation relative to the U.S. dollar could hurt the value of PagSeguro's profits for foreign investors; furthermore, Brazil has a consequential presidential election later this year, between the current far right administration and its leftist rival. What happened Shares of Brazilian fintech PagSeguro Digital (NYSE: PAGS) plummeted today, down 19.2% as of 12:52 p.m.