According to Statista, fintech in Latin America (LatAm) suffered in 2023, with less than $2billion invested in fintech ventures – a drastic drop from 2021’s value of $6billion. Nonetheless, in the face of this hardship, fintechs have still continued to emerge and find success in the region, and across 2024, investment levels surged back up over $2billion again. With the future of fintech looking optimistic in 2025, Em Conversa looks to explore how the LatAm region can prosper once more.
In mid-January, the global paytech originating from Australia, Airwallex announced that it had completed the next step in its global expansion by entering two prominent markets in Latin America. Looking to facilitate international businesses’ entry into the region, Airwallex acquired a payment institution licence from the Banco Central do Brasil, and finalised the acquisition of MexPago, a Mexico-based payment service provider and an Institution of electronic payment funds (IFPE) licence-holder.
Ravi Adusumilli, executive general manager of Americas at Airwallex
To understand why Airwallex has taken an interest in the LatAm market and why it believes it has potential, we sat down with Ravi Adusumilli, president, of Americas at Airwallex.
Can you tell me more about the company and your role within it?
Airwallex, founded in 2015, is a leading global financial platform for modern businesses, offering trusted solutions to manage everything from payments, treasury, card issuing and spend management to embedded finance.
With our proprietary global infrastructure, Airwallex takes the friction out of payments and financial operations, empowering businesses of all sizes to unlock new opportunities and grow beyond borders. Proudly founded in Melbourne, Airwallex supports over 150,000 businesses globally and is trusted by brands such as Bill, Brex, Rippling, Navan, Qantasand many more.
As the president of the Americas at Airwallex, I oversee the company’s strategy and operations across the US, Canada, and Latin America, identifying opportunities to drive Airwallex’s rapid regional growth. I also play a key role in supporting the company’s global strategy as a member of Airwallex’s global leadership team.
What are some payments trends we’re seeing in Mexico and Brazil?
In Brazil, PIX, the instant payment network introduced by the central bank, is rapidly transforming the payments landscape. By 2026, PIX is projected to account for 40 per cent of online payments, demonstrating its widespread adoption among consumers. However, despite this progress, B2B payments in Brazil have lagged in digitisation, particularly for cross-border transactions, which remain cumbersome for many businesses.
This gap presents a significant opportunity to innovate and simplify B2B payment processes.
In Mexico, the demand for digital financial tools is growing at an impressive rate, driven by the increasing globalization of small and medium-sized enterprises (SMEs). Around 85 per cent of Mexican SMEs anticipate expanding their international business activities, reflecting a clear need for efficient cross-border payment solutions.
Cross-border transactions already account for 22 per cent of the country’s e-commerce activity, emphasising the importance of integrating seamless financial infrastructure. The fintech sector is capitalising on these trends, especially given the region’s younger, digitally native population and Mexico’s status as a key trading partner to the US. Both markets are ripe for digital transformation, offering enormous potential to reshape the cross-border payments landscape.
What is Airwallex doing to improve the payments sector in LatAm?
Airwallex is making substantial strides to improve the payments ecosystem in Latin America by linking our global financial infrastructure with local economies.
In Brazil, we recently secured licensing which will offer Brazilian businesses and global businesses looking to operate in Brazil services like local accounts, card issuing, and participation in open banking, alongside plans to launch PIX and Boleto payment capabilities.
In Mexico, the acquisition of MexPago will enable Airwallex to provide a robust suite of offerings, including a wallet, integration with local payment methods, card issuing, and POS solutions for brick-and-mortar businesses. These efforts aim to address long-standing inefficiencies in cross-border payments and drive regional economic growth.
How do the latest announcements impact Airwallex’s standing in the space?
Our expansion into Brazil and Mexico significantly strengthens our position as a global leader in cross-border payments. By securing licenses in Latin America’s two largest economies and integrating with local payment systems, we are adapting in local markets while maintaining our global reach.
This dual-market entry enhances Airwallex’s infrastructure, making it a go-to solution for businesses seeking seamless cross-border payment capabilities. These developments allow us to support both international companies entering the region and local businesses expanding globally.
How does the LatAm payments sector compare to that of the rest of the world?
The LatAm payments sector is characterized by rapid digital transformation, particularly among consumers, but faces unique challenges compared to other regions.
In Brazil, instant payment systems like PIX have driven consumer innovation and are starting to expand to other regions, but B2B cross-border transactions remain underdeveloped.
In Mexico, regulatory frameworks for fintech are evolving more slowly, and many businesses still struggle with traditional payment processes. However, both countries show significant growth potential for their high smartphone adoption rates, younger tech-savvy populations, and growing demand for digital financial tools – making it a high-growth region with potential for significant disruption.
What are some unique challenges associated with the region in the payments space?
Brazil has a straightforward regulatory framework, enabling fintechs to navigate licensing relatively easily. However, the B2B payments space has been slow to digitize. In Mexico, fintech regulation has been slower to implement, necessitating acquisitions like MexPago to secure market entry.
Serving the underbanked population and addressing fragmented payment infrastructures are ongoing challenges. To address these, we are leveraging local payment methods like PIX, SPEI, and OXXO while integrating MexPago’s POS acquiring solutions to enhance omnichannel capabilities and expand access to digital financial tools across underserved markets.
Plans for the future
Our immediate focus in Brazil and Mexico is to enable payment capabilities for customers, allowing them to operate more seamlessly within these markets. Long-term, we’re always looking for more opportunities in markets across Latin and South America, while continuing to strengthen our infrastructure and drive economic opportunities for SMEs and enterprises alike.
Final thoughts
The expansion into Brazil and Mexico is a major step for Airwallex, not only in terms of market reach but also revenue growth. Last year, we announced Airwallex was approaching $500M ARR – a testament to the company’s strong product-market fit, ubiquitous global infrastructure, and continued market expansion. Now, we have reached $600M ARR as of the end of 2024, and our annual processing volume has surpassed $120 billion.
The acquisition of MexPago and the new license in Brazil will bring new opportunities for these businesses while granting global customers seamless access to these markets. These developments reinforce Airwallex’s position as a leader in the global payments space, driving both innovation and growth.
The post Em Conversa: Supporting LatAm Expansions With Airwallex appeared first on The Fintech Times.
