Latin America Cross-Border Payments Market Accelerates Amid E-Commerce Growth, Digital Push

Latin America (LatAm)’s cross-border payments space is undergoing a profound transformation, driven by the explosive growth of e-commerce, increasing adoption of digital payments, and digitalization efforts by governments.

An in-depth analysis by FXC Intelligence, a financial data company specializing in payments and e-commerce, explores the key trends shaping this evolving space, highlighting the growth drivers of the sector and the dynamic opportunities across industries including remittances, international trade, and online commerce.

According to the report, LatAm is seeing significant developments across the cross-border sphere. In particular, Mexico and Brazil, the region’s two biggest economies, are leaders in this industry, driven by e-commerce activity.

Brazil dominates LatAm’s e-commerce market, accounting for a staggering 55% of total e-commerce sales in the region. According to Payments and Commerce Market Intelligence (PCMI), e-commerce penetration in Brazil has reached 90% among adults.

In 2024, Brazil’s e-commerce volume hit US$346 billion, with projections reaching US$586 billion by 2027, growing at a 19% compound annual growth rate (CAGR). The domestic market still commands the lion’s share, making up 92% of e-commerce sales. However, cross-border activity is on the rise, expecting to expand by 32% in 2025, outpacing the 20% growth forecast for domestic sales.

Mexico, meanwhile, is the region’s second-largest e-commerce market, with 2024 volume of US$97 billion, according to PCMI. Like for Brazil, e-commerce has become deeply integrated into Mexican consumers’ lives, with a 74% penetration rate among adults.

Though domestic stores currently account for 79% of total e-commerce sales in Mexico, the cross-border market is projected to grow at a remarkable 41% rate in 2025, underscoring the rapid expansion of cross-border online commerce.

In more volatile countries like Venezuela, innovation is taking different forms, with cryptocurrency remittances emerging as a vital alternative. According to a Bloomberg July 2024 report, crypto remittances now amount to around 9% of the overall remittances to the country, hovering around US$461 million.

Cross-border payment developments across major Latin American markets, Source: FXC Intelligence, Apr 2025

Government-led digital initiatives

The surge in cross-border payments and commerce across LatAm coincides with a growing wave of digitalization efforts driven by proactive governments.

In countries like Colombia and Chile, open finance regulations are being implemented to drive financial innovation and boost financial inclusion. These rules aims to streamline digital transactions, paving the way for more seamless digital payments, and ultimately, facilitating cross-border transactions.

Governments are also working on connecting their instant payment systems. Pix, for example, Brazil’s instant payment system, has expanded its reach to Argentina and Uruguay, allowing Brazilians to make payments abroad through local businesses supporting the payment method.

Peru is also stepping into the real-time payments arena. Last year, the central bank announced a partnership with NPCI International Payments Limited (NIPL) to introduce a cutting-edge real-time payments system in Peru modeled after India’s successful Unified Payment Interface (UPI).

Besides real-time payment initiatives, which are now widespread across the region, LatAm governments are also ramping up central bank digital currency initiatives.

Drex, for example, is Brazil’s CBDC initiative. It aims to issue a digital version of Brazil’s sovereign currency that operates within a distributed ledger technology (DLT) ecosystem, aiming to promote financial inclusion. reduce transaction costs, and encourage innovation. Drex is currently in the second phase of its pilot program, with Banco do Brasil enlisting Giesecke+Devrient to test the system.

Latin America’s cross-border payments landscape

Booming cross-border commerce and rapid digital adoption have given rise to a dynamic cross-border payments landscape, which now comprises a blend of traditional incumbents, and disruptive fintech startups.

Legacy players such as Western Union, MoneyGram, and Ria leverage expansive payout networks across the region. These companies are now shifting towards digital solutions to keep up with technological advancements and changing customer expectations.

Meanwhile, homegrown innovators including dLocal and Ebanx, have emerged to tap into the opportunity. Specifically, these companies offer localized solutions for payment processing and e-commerce, helping merchants navigate the local intricacies of payments across different LatAm countries.

Ebanx, a Brazil-based global payment service provider, specializes in cross-border transactions, connecting global companies with consumers in emerging markets across Latin America, Africa, and Asia. The company collaborates with over 1,600 global merchants, including notable names like Spotify, Uber, SHEIN, and Shopee.

Similarly, dLocal, headquartered in Uruguay and listed on Nasdaq, enables local payments in emerging markets by connecting global enterprise merchants with consumers across LatAm, Asia-Pacific (APAC), the Middle East, and Africa.

In 2024, dLocal recorded significant growth, with cross-border total payment volume (TPV) increasing by a staggering 67% year-over-year (YoY). The company reported a record TPV of US$26 billion, representing a 45% YoY increase, and a gross profit of $84 million.

In addition to regional champions, international fintech giants are also increasingly establishing a foothold in LatAm, recognizing the cross-border payment opportunity in the region.

Airwallex, a business-to-business (B2B) payments player originally from Australia, secured earlier this year a payments license in Brazil. The company plans to launch services in 2025, including access to a bank account in Brazilian reais with a unique identification number, as well as payment and collection methods like Pix and Boleto.

Meanwhile, Wise, a UK-based international money transfer specialist, expanded in January 2025 its services to Mexico, offering Mexican nationals a transparent, fast and seamless method to send money aboard.