Cross-border payments in Latin America: Master localization without losing scalability

As the payments industry evolves, companies must rethink their cross-border transaction strategy to align with the growing demand for digital solutions and an efficient regional payments infrastructure.

What are cross-border payments?

Cross-border payments refer to transactions between parties based in different countries. In Latin American countries, these flows are primarily driven by regional retail transactions and remittances—a vital source of income for millions of families.

The region is shifting rapidly toward real-time infrastructure. Brazil leads this evolution with Pix, the most adopted real-time payment system across Latin America. Countries like Colombia and Peru are also gaining momentum, with some of the fastest-growing RTP adoption rates worldwide.

As digital payment systems scale, the cross-border payments market across the region is expected to grow steadily, driven by rising financial inclusion, expanding smartphone access, and a growing demand for faster, seamless ways to send money across borders.

Common cross-border payment methods in Latam

Across the region, cross-border payments are executed through a wide range of methods reflecting both traditional infrastructure and fintech-driven innovation. Credit cards and bank transfers still dominate, but a growing proportion is now executed through real-time payment systems such as Pix.

Payment players and consumers alike leverage these systems to send money, settle transactions and access regional payment solutions, although efficiency and accessibility vary. From traditional wire transfers to blockchain technology and open finance integrations, the cross-border payments landscape is increasingly diverse and shaped by regulatory dynamics and user preferences.

The following are some of the most common methods used to make cross-border payments in Latin America:

Traditional electronic transfers (wire transfers)

Processed through networks such as SWIFT, they are typically used for larger B2B transactions. They are secure, but slow and generally expensive.

Electronic Funds Transfers (EFT/EFT)

Digital bank transfers processed through local infrastructure. Faster than traditional transfers, but still limited by country-specific systems.

Credit card payments

Widely used for international purchases, they allow payment in local currencies but often involve conversion fees and risk of chargebacks.

Online payment platforms

Services such as PayPal and Wise allow real-time transfers with transparent fees. They are ideal for early-stage startups or one-off payments, although less flexible on a large scale.

Cryptocurrencies

An emerging method for efficient cross-border payments. Offers low cost and speed, but faces volatility and adoption hurdles. Blockchain technology is being explored as infrastructure for regional payment rails.

International money transfers

Still in use for small amounts where digital access is limited, although its popularity is declining due to long processing times.

Cross-border payments with local expertise (Rebill model)

Rebill allows users to pay in their local currency using cards, bank transfers, wallets or cash, without appearing as an international transaction.

Funds are collected locally, converted to USD and sent to the country of trade, enabling efficient cross-border payments without the need to open local entities.

How do cross-border payments work?

Traditional bank transfers involve multiple intermediaries, which increases delays and costs. If the recipient does not have an account at the same institution as the sender, central bank rules and correspondent banking networks are involved.

Platforms like Rebill simplify this. With a single integration, companies can manage payments in multiple markets, handling local regulations, currency conversion and funds transfers in a single streamlined workflow.

Opportunities and challenges in cross-border payments

Implementing the right infrastructure for cross-border payments is both a strategic advantage and a complex task, with challenges and opportunities to seize. In Latin America, this involves addressing fragmented systems, complying with changing central bank regulations and providing a frictionless user experience across markets. At the same time, it opens up significant opportunities to optimize payment processing, expand access to local methods, and build resilient and scalable solutions that support international trade and the payments ecosystem in general.

Opportunities:

• Unlocking new sources of revenue through international trade
• Access to local payment preferences for a better user experience
• Expansion without local entities thanks to integrated payment processing
• Leveraging digitization to improve efficiency and automation
• Gaining resilience by diversifying operations in different markets
  

Challenges:

• Fragmented payment infrastructure among countries
• Compliance with changing regulations and central bank mandates
• Multi-currency reconciliation management and transparency
• Balancing cost control with local user experience
• Ensuring security in the face of increased global payment fraud risks
  

The rise of fintech in Latam's payments ecosystem

Fintechs are entering the cross-border payments space to address long-standing inefficiencies, building frictionless payment flows that allow SMEs, SaaS companies, EdTech platforms and e-commerce businesses to scale in Latin America and the Caribbean without the cost overruns and long implementation times reserved for large corporations. However, in terms of localization, not all API-first cross-border payment solutions are the same.

Major fintech players shaping the future of payments in Latin America:

Rebill

A startup created specifically for the region, Rebill enables merchants to accept payments in local currencies and settle in USD, integrating multiple payment systems, open finance tools and local fulfillment on a single platform.

Wise

UK platform offering multicurrency accounts and transparent transfers, with open APIs for integrations.

PayPal

One of the most recognized global brands. Offers cross-border services including remittances via Xoom, although fees can be high.

Stripe

Developer-oriented payment platform with robust international tools, especially for SaaS and marketplaces.

Payoneer

Focused on freelancers and B2B services, allowing frictionless fund transfers and access to working capital.

The future of cross-border payments in Latin America

As digital infrastructure matures and central banks drive modernization, cross-border payments in Latin America will become faster, cheaper and more inclusive. Fintech innovation, the regulatory evolution towards open finance and the rise in smartphone usage are shaping a new era in the region.

With Rebill, you can seamlessly make cross-border payments while scaling your business in Latin America. Contact us to learn how our infrastructure supports your growth in the future of payments.

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