Rapid surge in top Latin American payment companies over a five-year period by a staggering 150%
In the latest Cross-Border Payments 100, published by our platform, five Latin American companies have made it onto the list, marking a significant increase since 2019 when only two companies from the region were represented. The region continues to be a key area in the cross-border payments space, attracting more and more payment companies that are setting up shop and partnering with larger international companies.
The five Latin American companies in the top 100 are Mercado Pago, EBANX, dLocal, Monex, and Banorte. These companies have headquarters or were founded in one of the following countries: Argentina, Brazil, or Mexico.
Daniel Webber, CEO and founder of the platform, expects the region to continue to grow in importance. He notes, "The region's appeal for payment companies lies in its openness to new technology and affinity for digital payment solutions."
One of the key drivers of this growth is the rise in remittance corridors, particularly the U.S.-Mexico corridor, which is the largest in the world. The commercial segment of cross-border payments has grown faster than consumer-led transactions in North America, benefiting Latin America indirectly.
Another factor fueling this growth is the increase in e-commerce and digital penetration. Countries like Mexico have shown fast revenue growth in online shopping, presenting untapped potential for digital cross-border payment firms.
Brazil stands out in Latin America for its crypto-friendly regulation and innovation in digital assets. This regulatory clarity encourages fintech companies, including those offering cross-border payment services leveraging blockchain technologies, to expand and innovate.
The fintech ecosystem in Latin America has also expanded, backed by venture capital and partnerships, leading to more specialized cross-border payment solutions to serve B2B, B2C, and consumer-to-business (C2B) segments.
However, comprehensive regional quantitative data specifically measuring the number of companies is limited in the current sources. Available data mainly focuses on North America as a whole without country-by-country separation or detailed figures for Latin America specifically. Indirect indicators, such as remittance flows, e-commerce growth, and crypto regulation, confirm a substantial increase in cross-border payment activity and company formation since 2019.
Immigrants based in the US are sending money home to help families tackle the rising cost of living in Latin America, further driving the need for cross-border payment solutions. As the job market recovers post-pandemic, the region continues to be a strong area for remittances.
In conclusion, cross-border payment companies in Latin America have increased significantly since 2019 due to expanding remittance corridors, growing e-commerce markets, favorable crypto regulatory environments (especially in Brazil), and a maturing fintech ecosystem. Despite data limitations, the trends suggest a promising future for the region in the cross-border payments industry.
[1] North American Cross-Border Payments Report, 2020 [2] Latin America E-Commerce Market Report, 2021 [3] Brazil Central Bank Digital Currency (CBDC) Launch, 2021
- The growth in cross-border payment companies in Latin America can be attributed to the region's affinity for digital payment solutions and openness to new technology, as highlighted by Daniel Webber, the CEO and founder of the platform.
- The increase in e-commerce and digital penetration, coupled with favorable crypto regulatory environments, particularly in Brazil, has fueled the expansion of fintech ecosystems in Latin America, leading to more specialized cross-border payment solutions.
