I would now like to hand the conference over to dLocal. You may begin.
Good afternoon, everyone, and thank you for joining the third quarter 2024 earnings call today. If you have not seen the earnings release, a copy is posted in the financials section of the Investor Relations website. On the call today, you have Pedro Arnt, Chief Executive Officer, Mark Ortiz, Chief Financial Officer, Soledad Noceto , SVP of Corporate Development, Strategy and Investor Relations, and Mirele Aragao, Head of Investor Relations. A slide presentation has been provided to accompany the prepared remarks. This event is being broadcast live via webcast, and both the webcast and the presentation may be accessed through dLocal's website at investor.dlocal.com. The recording will be available shortly after the event is concluded. Before proceeding, let me mention that any forward-looking statements included in the presentation or mentioned in this conference call are based on the currently available information and dLocal's current assumptions, expectations, and projections about future events.
While the company believes that our assumptions, expectations, and projections are reasonable given currently available information, you are cautioned not to place undue reliance on those forward-looking statements. Actual results may differ materially from those included in dLocal's presentation or discussed in this conference call for a variety of reasons, including those described in the forward-looking statements and risk factors section of dLocal's filing with the Securities and Exchange Commission, which are available on dLocal's Investor Relations website. I will now turn the conference over to dLocal. Thank you.
Thanks, everyone, for joining us today. Let me begin with a quick overview of our main highlights for the quarter. We're encouraged by how we see the business evolving. After an admittedly soft first quarter, we see ourselves consistently gaining momentum. Despite a tough 2023 comparison driven by extraordinary gains in Argentina, we've once again returned to delivering a quarter of record results in both TPV and gross profit. Our margins, cash position, and cash conversion have all improved quarter after quarter throughout 2024. A year that started off admittedly weak has gained positive momentum. Let me go into greater detail now, starting off with our top-line results.
We continue to deliver significant growth, with total payment volume re-accelerating to over 40% year- over- year, driven by our continued ability to expand our share of wallet of our existing global merchant base, as well as onboard new merchants, both things underscoring our position as a trusted partner for global companies seeking to do business across emerging markets. Our performance this quarter was strong across diverse verticals, countries, and products. Notably, we ramped up operations in more countries, offered more payment methods, and gained share of wallet across important logos in the financial services, software as a service, on-demand delivery, advertising, ride-hailing, and commercial verticals. We increased payment volume in Argentina, Mexico, Egypt, and Other Latin America, mainly in Colombia and Peru, as well as in Other Africa and Asia, with very strong performance in South Africa.
We reported record volume in our higher take rate cross-border business, surpassing the $3 billion quarterly mark in cross-border flows for the first time ever. Our pipeline remains robust, including both growth opportunities with existing merchants as well as new merchants. During the period, we successfully integrated major players, including MoneyGram, one of the largest global providers of money transfer and payment services, and other significant remittance companies, to serve them across Latin America, Africa, and Asia. We also continued to ramp up volumes with one of the main Asian commerce players, expanding the regions in which we serve them, and have now gone live in Brazil with one of the largest global fintech companies, also out of Asia. Moving on to profitability, this quarter's results showcase the resilience of our business model.
We reached record gross profit of $78 million, with net take rates stable at 1.2% since Q1 2024. This is a consequence of our differentiated value proposition, continuous pursuit of cost efficiencies, such as renegotiating with processors, and the real value in solving complexities across emerging markets for our global merchants, which grants us pricing power and differentiates from more commoditized payments offerings that we see in the developed world. We achieved those results despite weaknesses in most emerging market currencies. From a currency perspective, applying constant currency growth rates across our main markets, Brazil, Mexico, Argentina, Egypt, and Nigeria, our gross profit would have been approximately 6% higher during the third quarter 2024, or over 18% Q on Q growth, and TPV growth would have been 14% quarter- over- quarter.
Our adjusted EBITDA reached $52 million, despite continued investments in our engineering team, back office capabilities, and our licensed portfolio, all crucial for our long-term success. Although adjusted EBITDA was down year- over- year, this represents the second consecutive quarter of increased operational leverage, with adjusted EBITDA over gross profit margin now at 67%. This demonstrates the operational leverage inherent in our business model, general philosophy of expense control, and disciplined investment to deliver our long-term growth ambitions. Cash generation, another strength in our financial model, was also solid. During the past three months, we had net cash from operating activities, excluding merchant funds, minus CapEx, accounting to $26 million, a cash conversion of practically 100% to net income. I'd now like to cover some technology and product development deployments during the quarter that shed further light on what our core offering is and how we differentiate from competitors.
Some context: always remember that the backdrop of where we operate is an emerging market landscape where payments are still characterized by three main factors: they're fragmented, they're costly, and they have lower performance. During the quarter, we launched our Smart Requests functionality, boosting our transaction performance and therefore improving conversion rates by an average of 1.22 percentage points across the board. It may sound minor, but it isn't. It actually represents, in practical terms, 1.2% additional revenue to our merchants. Smart Requests rely on per-country machine learning models that optimize routing and chaining so as to maximize authorization rates for our merchants. We've also continued to develop increasingly advanced real-time cost calculation models to optimize processing costs, which also contributed to our gross profit achievement and stable net take rate. A third area of innovation has been our launch of new and promising alternative payment methods.