World fintech Airwallex have introduced a number of milestones with its enlargement technique to Latin America: securing a cost establishment license from the Banco Central do Brasil, and finalizing the acquisition of MexPago, a Mexico-based cost service supplier and an Establishment of Digital Cost 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 numerous and strategically important markets all over the world,” mentioned Ravi Adusumilli, President, Americas at Airwallex. “With licenses in Brazil and Mexico, we may also help corporations in Latin America to broaden and thrive throughout borders, whereas additionally serving to companies all over the world to function extra seamlessly in these two dynamic financial markets.”
Unlocking Brazil’s B2B Cost Market
Brazilian customers have been on the forefront of cost digitization – PIX, Brazil’s prompt cost community will account for an estimated 40 % of on-line funds in Brazil by 2026. Nonetheless, 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 cost alternative, Airwallex has obtained a cost establishment license to supply companies to Brazilian companies, together with native accounts, card issuing, and cost buying; in addition to participation within the open banking ecosystem in Brazil. Airwallex plans to launch further companies for world prospects in 2025, together with entry to a checking account in Brazilian Reais with a novel identification quantity, in addition to cost 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 cost 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 progress is additional fueled by Mexico’s growing significance as a strategic buying and selling companion to the U.S., not too long ago overtaking China to grow to be the highest exporter of products to the U.S. for the primary time in 20 years.
“Mexico performs a pivotal position within the world financial system, serving as a key hyperlink between North and South America and a essential hub for cross-border funds,” mentioned Luis Castillejos Ordaz, CEO and founding father of MexPago. “We’re proud to hitch 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 higher worth to our shared prospects. Collectively we’ll unlock borderless alternatives for companies right here in Latin America and all over the world.”
Castillejos will tackle a brand new position as Nation Supervisor for Airwallex, Mexico the place he will probably be accountable for managing operations, driving progress, and serving to Airwallex’s present and potential prospects navigate entry into Mexico.
The enlargement into Brazil and Mexico provides to Airwallex’s present licenses throughout main markets all over the world, together with Australia, the European single market, Canada, Malaysia, Hong Kong, New Zealand, Singapore, mainland China, the UK and the USA.
