International fintech Airwallex have introduced a number of milestones with its enlargement technique to Latin America: securing a fee establishment license from the Banco Central do Brasil, and finalizing the acquisition of MexPago, a Mexico-based fee service supplier and an Establishment of Digital Fee Funds (IFPE) license-holder. With these two licenses secured, Airwallex will hyperlink its world monetary infrastructure to Latin America’s two largest economies to allow help for corporations in Brazil and Mexico and facilitate worldwide companies’ entry into the area.
“Our infrastructure technique is to attach various and strategically important markets world wide,” stated Ravi Adusumilli, President, Americas at Airwallex. “With licenses in Brazil and Mexico, we will help corporations in Latin America to develop and thrive throughout borders, whereas additionally serving to companies world wide to function extra seamlessly in these two dynamic financial markets.”
Unlocking Brazil’s B2B Fee Market
Brazilian customers have been on the forefront of fee digitization – PIX, Brazil’s on the spot fee community will account for an estimated 40 % of on-line funds in Brazil by 2026. Nevertheless, B2B funds in Brazil have lagged behind in digitization, notably for cross-border transactions, which stays a painful course of for Brazilian companies.
To faucet into Brazil’s B2B fee alternative, Airwallex has obtained a fee establishment license to supply providers to Brazilian companies, together with native accounts, card issuing, and fee buying; in addition to participation within the open banking ecosystem in Brazil. Airwallex plans to launch extra providers for world prospects in 2025, together with entry to a checking account in Brazilian Reais with a novel identification quantity, in addition to fee and assortment strategies like PIX and Boleto.
Driving Cross-Border Alternative in Mexico
Demand for digital monetary instruments is surging in Mexico, pushed by the rising want for environment friendly cross-border fee options. An estimated 85 % of SMEs in Mexico anticipate increasing their worldwide enterprise actions, whereas cross-border transactions already account for 22 % of the nation’s e-commerce exercise. Mexico additionally stands out because the fastest-growing marketplace for cross-border transactions within the area, with a CAGR of 44 %. This development is additional fueled by Mexico’s rising significance as a strategic buying and selling associate to the U.S., just lately overtaking China to change into the highest exporter of products to the U.S. for the primary time in 20 years.
“Mexico performs a pivotal function within the world economic system, serving as a key hyperlink between North and South America and a important hub for cross-border funds,” stated Luis Castillejos Ordaz, CEO and founding father of MexPago. “We’re proud to affix forces with Airwallex to allow seamless and safe cross-border transactions for companies worldwide. MexPago’s home capabilities mixed with Airwallex’s world attain will ship even larger worth to our shared prospects. Collectively we are going to unlock borderless alternatives for companies right here in Latin America and world wide.”
Castillejos will tackle a brand new function as Nation Supervisor for Airwallex, Mexico the place he can be accountable for managing operations, driving development, and serving to Airwallex’s current and potential prospects navigate entry into Mexico.
The enlargement into Brazil and Mexico provides to Airwallex’s current licenses throughout main markets world wide, together with Australia, the European single market, Canada, Malaysia, Hong Kong, New Zealand, Singapore, mainland China, the UK and america.