Nu Holdings’ NU 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 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 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nu Holdings Ltd. (NU): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).