Nium, the global real-time cross-border payments provider, is looking to strengthen its presence in Latin America by applying for new payment licenses, joining fintech associations, growing its team, and signing new customers.
Earlier in August 2024, Nium applied for a Payment Institution Licence in Brazil, which would enable it to provide payment services to clients including managing funds locally in Brazilian Real (BRL) and real-time payments through real-time payment system Pix.
Anticipating significant growth in Latin America, Nium also plans to grow its physical presence in the region, hiring strategic roles in business development and partnerships. Commercial and consumer-based cross-border payment transactions in Latin America grew by double-digit figures between 2021 and 2022, according to a McKinsey & Company report in 2023.
Prajit Nanu, founder and CEO of Nium
“Latin America has established itself as a frontrunner in numerous cross-border use cases, particularly in global marketplaces where its e-commerce economy thrives in supplier corridors with Asia and Europe,” explained Prajit Nanu, founder and CEO of Nium. “Recognising this potential, we have been strategically investing in Latin America for years, securing major clients and expanding our operations. This ongoing growth empowers us to further bolster the region’s vibrant and dynamic landscape.”
Nium is also seeking FX authorisation in Brazil to enhance its foreign exchange transaction capabilities. It hopes that obtaining these licences will encourage greater levels of trust from clients in Nium’s risk and compliance processes.
Key partnerships
Nium also recently partnered with Brazilian digital bank BS2, which specialises in fintech solutions for businesses. BS2 leverages Nium’s Global FX product to reduce FX costs and enable real-time payouts between Brazil and key trading corridors like China and the UAE. BS2 has also joined Nium’s network of partner banks, acting as Nium’s BRL Correspondent Bank and assisting in real-time payment settlement for cross-border Pix transfers.
Nium and Ebury, the fintech firm specialising in SME transactions, also expanded their partnership to launch a groundbreaking global remittance service in Brazil, enabling businesses to send and receive cross-border payments to and from Brazil.
In addition, Nium has joined Associação Brasileira de Câmbio – Brazilian Exchange Association (ABRACAM), an association representing institutions authorised by the Central Bank of Brazil (BCB) to conduct foreign exchange operations.
This membership offers numerous benefits, including regulatory advocacy, knowledge sharing, and enhanced market credibility. Nium now has access to industry insights, exclusive resources, and collaboration opportunities with key stakeholders, with the ability to influence policies and foster a supportive ecosystem for banking in Brazil.
“We’ve made significant strides this year in expanding our presence in LATAM,” said Christina Hutchinson, VP of business development LATAM at Nium. “Nium is rapidly building and scaling local payout rails across the entire region to help better serve our target verticals, which are primarily banks, FIs, and platforms.
“We’re also working to bring our travel offering and card issuance to the region, once our new licences are in place. Brazil specifically has the potential to be a global leader in digital payment innovation and our advancements in cross-border payment solutions are creating meaningful impacts on millions of lives worldwide.”
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