Cross-Border Payments Explained: How They Work, Key Benefits, and Common Challenges

What Are Cross-Border or International Payments?

Cross-border payments—also known as international payments—are financial transactions between two parties located in different countries.

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

Whether your business operates regionally or globally, it's key to understand the most common methods for managing cross-border payments. These are the main ones:

Traditional electronic transfers (wire transfers)

Processed through networks like SWIFT, these are typically used for larger B2B transactions. Secure but slow and often expensive.

Electronic funds transfers (EFT)

These are international bank-to-bank transfers processed through networks like SWIFT or SEPA. Often used for high-value B2B transactions, they’re secure but tend to have slower settlement times and higher transaction fees. 

Credit card payments

It's one of the most widely used electronic payments for global sales, especially in e-commerce. Payments can be made in different currencies, but they often include conversion fees and the risk of chargebacks.

Online payment platforms

Solutions like PayPal, Wise, and similar allow you to send and receive money in multiple currencies in real time, quickly, and with competitive fees. They're ideal for one-time transactions or early-stage small businesses.

However, as you scale, these platforms can limit checkout customization, create friction in reconciliation, and impact your margin.

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 orders

Still in use for small amounts where digital access is limited, though declining in popularity due to slow processing times.

Cross-border payments with local expertise (Rebill model)

Rebill allows users to pay in their local currency via cards, bank transfers, digital wallets, or cashwithout seeing an international transaction.

Rebill receives those funds in local currency, converts them to USD, and makes an international transfer to the merchant's country , simplifying the experience for both the buyer and the seller.

This setup enables businesses to scale across multiple countries without opening local entities, while maintaining a seamless, market-adapted payment experience.

How do cross-border payments work?

When using a traditional bank, the payment process involves several entities before reaching the recipient. If the seller doesn't have a bank account at the receiving bank, the funds must be processed by intermediary banks, which adds delays and additional costs.

With Rebill, you can manage payments across several countries through a single integration. The platform handles currency conversion, local compliance, and direct fund transfers—eliminating operational friction.

Advantages of cross-border payments 

For companies

• Global Expansion Without Barriers: Enter new markets smoothly by accessing international customers, partners, and suppliers with a unified payment system.
• New Revenue Streams Selling abroad boosts business opportunities and accelerates growth. Diversifying markets strengthens income stability.
• Local risk reduction: By diversifying markets and currencies, exposure to national economic crises is mitigated. This helps maintain stable cash flow, even in unstable environments.
• Cost optimization: Some international payment methods are more affordable than traditional banking channels. In addition, hidden conversion and intermediation fees are eliminated.
• True financial flexibility: Businesses can choose the best payment method based on currency, country, or payment type. This improves the payer experience and better adapts to the type of transactions performed.
• More efficient operations: Advanced platforms automate accounting conversions, reconciliations, and reporting. This way, your finance team can focus on strategic, not operational, tasks.
• Hassle-free global payments: Facilitate transfers to suppliers or freelancers in any country from a single system. This streamlines contracting and collaboration processes without administrative friction.
• Resilience in adverse scenarios: Having revenue in different regions helps sustain operations in the face of local crises. A global revenue network protects your business against sudden declines in a single market.

For customers

• Global access from any country: You can easily purchase products and services from international brands. This expands your options and improves your digital shopping experience.
• Payments in their own currency: They choose to pay in their local currency, even if the merchant operates from another country, without any surprises at the end. This reduces friction and improves conversion at checkout.
• Security and trust: Using familiar methods like local cards, PayPal, or digital wallets improves the shopping experience. Trust in the payment method is key to completing the transaction.
• Experience tailored to the local market: Companies that operate well internationally tailor prices, messaging, and payment methods to each country. This creates proximity, greater loyalty, and a sense of local purchasing, even for businesses operating in the global market.

Challenges of cross-border payments 

Learn about the main challenges and some tips to optimize your cross-border payment management in Latin America.

• Local regulations: Each country has its own regulations regarding payments, data protection, and AML (anti-money laundering). Complying with these regulations can be costly if you don't have a solution that already operates within these frameworks.
• Currency risks: Exchange rate fluctuations can affect revenue. Multi-currency reconciliation and transparent rates allow for financial control.
• High transaction costs: Conversion and intermediary fees increase the cost of each sale.
• Variable fees depending on method and country: Additional charges vary depending on the payment method and source. Having clear rates improves your planning and user experience.
• Operational complexity: Processing international payments involves reconciliations, validations, and local adaptations. Centralizing everything under a single infrastructure saves time and effort.
• Fraud and cybersecurity risks: Cross-border payments can be more vulnerable. Using a PCI DSS-certified platform with anti-fraud software significantly reduces this risk.

Key Players in Cross-Border Payments in Latin America

These are the most relevant cross-border payment providers in the Latin American market.

Rebill

Rebill is a payments and subscription platform designed specifically for Latin America. It allows businesses to charge in local currency and manage currency conversions, offering a comprehensive payment solution for cross-border transactions in the region, without the need to open local entities in each country. 

It also offers immediate human support, unified reconciliation, automatic invoice issuance, and a transparent structure.

Ideal for SaaS, Edtech, Healthtech, and global platforms that need to operate in multiple countries without losing control or scaling operational complexity. We operate in the region's key markets.

Wise (formerly TransferWise)

Wise is a British fintech that offers fast, low-cost international transfers for individuals and businesses. Its platform allows for money transfers in multiple currencies with transparent fees and no hidden markups. It also offers multi-currency accounts and integrates with banks and businesses through its Wise Platform.

PayPal

PayPal is one of the most well-known digital payment services worldwide. It offers services like Xoom for remittances and facilitates international payments for consumers and businesses, although with fees that include a surcharge on the mid-market exchange rate.

Stripe

Stripe provides payment infrastructure for digital businesses and e-commerce, enabling companies to accept online payments and manage international transactions. Its platform supports multiple payment methods and currencies, and offers tools to simplify the complexities of cross-border payments.

Payoneer

Payoneer is a financial services company that facilitates cross-border payments for businesses and professionals worldwide. It offers accounts that allow sending and receiving funds in various currencies and provides solutions for managing B2B payments, freelance services, and access to working capital.

The future of cross-border payments in Latin America

As digital infrastructure matures and central banks push modernization, cross-border payments across Latin America will become faster, cheaper, and more inclusive.

Fintech innovation, regulatory shifts toward open finance, and increasing smartphone use are shaping a new era for the region.

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