How Global Companies Expand into LATAM Payments

Introduction

Latin America is no longer a peripheral market for global companies — it is a strategic growth region. With over 650 million consumers, some of the highest digital adoption rates worldwide, and real-time payment systems like Pix and SPEI, LATAM has become one of the fastest-growing digital economies.

Yet expansion remains complex: each country has its own financial ecosystem, central bank rules, tax and settlement frameworks. Card-only strategies miss most consumers. Succeeding requires a structural approach to local payments — integrating regulation, liquidity, and standardized infrastructure. This is where Local Payment Infrastructure (LPI) changes the game.

Contents

• 1. The Opportunity: LATAM as a High-Growth Payment Region
• 2. Why Traditional Global Payment Models Fail in LATAM
• 3. The Structural Solution: Local Payment Infrastructure (LPI)
• 4. Anatomy of a LATAM Payment Expansion via LPI
• 5. Key Regulatory Insights by Country
• 6. How KRX Scale Enables LATAM Expansion
• 7. Strategic Advantages for Global Companies
• 8. The Future of LATAM Payments
• Conclusion
• FAQ

1. The Opportunity: LATAM as a High-Growth Payment Region

1.1 Market fundamentals

• Over $1.2 trillion in annual digital payments volume (source: Statista, 2024).
• A projected 18% CAGR in online transaction value through 2030.
• Over 60% of users in key markets prefer local payment methods over cards.

1.2 The regional fragmentation problem

Each major LATAM country runs its own local payment network:

• Pix in Brazil (regulated by BACEN)
• SPEI in Mexico (regulated by Banxico)
• PSE in Colombia (operated by ACH Colombia)
• Transfiya in Chile and other smaller rails in Argentina, Peru, and Central America

These systems drive local efficiency but create complexity for international players. Integrating them individually means dealing with multiple regulators, currencies, and FX compliance frameworks.

2. Why Traditional Global Payment Models Fail in LATAM

2.1 Dependence on cards and acquirers

• Card networks cover less than half of LATAM’s active consumers.
• A2A instant rails are the fastest-growing methods.
• Card-only strategies increase cost: FX spreads, interchange, local acquiring margins.

2.2 Regulatory heterogeneity

• Definitions of payment institutions differ per country.
• Rules on who can process domestic payments vary widely.
• FX reporting and remittance obligations are strict under AML laws.

2.3 Currency and remittance bottlenecks

• LATAM currencies are not freely convertible.
• BRL, MXN, COP require FX contracts handled by licensed intermediaries for repatriation.

3. The Structural Solution: Local Payment Infrastructure (LPI)

LPI allows companies to operate across LATAM without setting up entities or bearing direct regulatory exposure. It connects local rails, licensed institutions, and global settlement networks into a unified, programmable layer with compliance and FX automation.

4. Anatomy of a LATAM Payment Expansion via LPI

1. Local collection: Pay via Pix/SPEI/PSE; processed by a licensed local entity.
2. Compliance & FX: Automatic AML/KYC/FX pairing per country rules.
3. Global settlement: USD or stablecoins to the merchant’s account in ~24–48h.
4. Unified reporting: One API with cross-market reconciliation and FX visibility.

5. Key Regulatory Insights by Country

6. How KRX Scale Enables LATAM Expansion

• Local connectivity: Pix/SPEI/PSE via regulated partners.
• Automated FX & compliance: Each payment matched with required documentation.
• Global liquidity: USD or stablecoin settlement with traceability.
• Unified API: One endpoint for all LATAM markets.
• Scalability: Expand to multiple regions without new licensing.

7. Strategic Advantages for Global Companies

8. The Future of LATAM Payments

Real-time, bank-to-bank payments are becoming the default infrastructure. Expect cross-border corridors, stablecoin settlement layers, regulatory sandboxes, and cross-regional APIs that make LATAM operate as a unified payment zone.

Conclusion

Expanding into LATAM payments is a structural challenge. Local Payment Infrastructure provides the foundation: operating across Brazil, Mexico, Colombia and beyond with legal certainty, global liquidity, and a unified API. KRX Scale connects local systems, automates compliance and FX, and enables global companies to scale with precision and speed.

FAQ

1. Why can’t global PSPs like Stripe fully serve LATAM yet?

Most operate on card networks and lack regulatory access to local rails like Pix or SPEI.

2. Is it legal to receive Pix or SPEI payments as a foreign company?

Yes — via a licensed local intermediary that handles compliance and FX.

3. How fast can funds be settled internationally?

Typically within 24–48 hours after payment confirmation.

4. What currencies can be received?

USD and stablecoins, depending on jurisdiction and agreement.

5. Which companies benefit most?

SaaS, marketplaces, digital services, and fintechs entering LATAM.