Cross-Border Fintech: LATAM’s Next Big Opportunity
Latin America has long been a testing ground for financial innovation. First came neobanks, bringing millions of consumers into the formal financial system. Today, the region is entering a new phase: cross-border fintech. This wave is tackling one of the region’s most urgent financial challenges, how to access and move U.S. dollars quickly, cheaply, and securely.
Why This Opportunity Is Real
Remittances remain a lifeline for many economies in the region. In 2023, Latin America received more than $160 billion USD in remittances, yet fees and settlement times remain among the highest globally (Mastercard). For freelancers and SMEs that work with international clients, the pain is similar: slow transfers, poor FX rates, and opaque fees. These inefficiencies create fertile ground for disruption.
Crypto and stablecoin volume is exploding. Between July 2022 and June 2025, Latin America recorded nearly $1.5 trillion USD in crypto transaction volume, with many flows tied to cross-border transfers and currency hedging (Chainalysis).
Also, there is a high level of adoption driven by macro conditions. In countries with high inflation or currency volatility (Argentina, Venezuela, etc.), stablecoins increasingly act as dollar proxies. In Argentina, stablecoin transaction volume exceeded local alternatives: 61.8% of crypto volume is stablecoin (Chainalysis).
Startups building the future
Several Latin American startups are building solutions around this opportunity:
Belo in Argentina has turned stablecoins into everyday money, offering a wallet and prepaid Mastercard that allows users to pay or send money seamlessly.
EFEX provides a platform and APIs to help startups and SMEs move capital across borders efficiently: opening global accounts, holding funds in USD, and converting them into local currencies using instant or forward payments. Their offering supports up to 140 countries, embedded product integration, and reduced FX costs.
Pomelo, based in Argentina, is building card issuance and compliance infrastructure for fintechs across the region.
And Global66, a Chilean platform for international transfers and multi-currency accounts, surpassed $1 billion USD in transaction volume as early as 2021.
Challenges to Overcome
The opportunity is massive, but so are the obstacles. Regulation remains fragmented: Brazil has advanced frameworks for digital assets, while Mexico takes a far more cautious stance. Liquidity and trust are recurring issues, users need confidence that digital dollars can be easily cashed out or spent locally. And pure payment rails risk becoming commoditized. The real defensibility will come from distribution, regulatory readiness, and integration into the financial workflows of SMEs and consumers.
Conclusion
Cross-border fintech in Latin America is no longer a niche reserved for crypto enthusiasts. It is becoming essential infrastructure for millions navigating inflation, remittances, and globalized work. Startups that combine innovation with compliance, pair intuitive user experience with trust, and understand the local nuances of each market will shape the financial backbone of the region in the decade ahead.
Portfolio Companies
News about our Portfolio Companies
Koywe: Pioneer in regulatory compliance and leader in Financial Intelligence.
Cashea projects $200 million USD in revenue this year and accounts for 90% of consumer credit.
Portfolio companies currently raising investment rounds
EFEX: A cross-border payment infrastructure platform that enables businesses to open global accounts, send and receive transfers in 140+ countries, and embed payments with minimal integration.
Qurable: An AI-powered platform that unifies customer data, integrates payments, and enables scalable personalized experienceshelping brands, creators, and audiences build relationships beyond transactions.
Wisecricket: A platform that automates financial audits using AI: monitoring invoices, contracts, and fiscal compliance in real time.
Supervisor AI: A platform to convert every business conversation generated into growth opportunities and actionable insights. Currently raising a $750k USD investment round.
Please don’t hesitate to contact us in case you are interested in connecting with any of these amazing companies.
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