In recent years, the growth of international e-commerce, digital platforms, and global companies has driven a growing demand for payment solutions that go beyond borders, these are known as cross-border payments.
The market, expected to reach USD 320 trillion by 2032 (FXC Intelligence), is driven by companies operating across multiple countries, dealing with different currencies, and serving an increasingly connected population that expects fast, accessible, and secure payment experiences.
However, the landscape is not without its challenges. Each country has its own systems, regulatory requirements, currency exchange processes, and consumer behaviors. Companies that don’t understand this complexity risk facing inefficiencies and regulatory penalties. That’s why it’s essential to understand what cross-border payments are, how they work in practice, and why companies operating in Latin America are increasingly turning to specialized infrastructure partners.
What are cross-border payments?
Cross-border payments are financial transactions between parties in different countries, where funds are sent, received, or converted between currencies. They connect global markets and enable international operations, usually processed through banks, fintechs, platforms, or digital wallets.
These transactions can be initiated by businesses or individuals and are processed using different mechanisms: international transfers (SWIFT), cards, instant payments (like Pix, SPEI, or PSE), digital wallets, and even stablecoins. The method chosen directly impacts the cost, speed, and complexity of the operation.
A real-world example is Webull, a US-based investment platform that decided to expand into Brazil. To win over the local market, it needed to offer payment methods familiar to Brazilian users, such as Pix. Integrating this local payment method into a global infrastructure requires more than technology, it requires local expertise. That’s exactly what Webull found in FacilitaPay, using a customizable and unified API that connects the platform seamlessly to the Brazilian financial system.
How do cross-border payments work in practice?
Behind the “send” or “pay” button, there’s a complex and often bureaucratic system that makes the transaction possible. Most cross-border payments still rely on a network of financial intermediaries. Each one handles a critical part of the process: data verification, compliance, currency conversion, routing, and settlement.
Each step requires strong tech integration, regulatory knowledge, and local operational capability. That’s where companies like FacilitaPay come in, offering end-to-end infrastructure to simplify the entire process, from incoming funds (Pay In) to final payouts (Pay Out).
Main types of cross-border payments
There are several ways to send and receive money internationally. Choosing the right method is a strategic decision, depending on the type of transaction, for example, business-to-person or business-to-business, as well as the country, currency, regulatory framework, and the speed required for settlement.
Below are some of the most common types used by global companies:
- International bank transfers: One of the most traditional and secure methods, like SWIFT, but typically high-cost and slow to settle;
- Local payment rails with direct integration: Customers pay using local methods such as Pix, SPEI, or PSE, and the funds are converted and delivered to the international business;
- Credit and debit cards: Widely accepted worldwide, they are convenient for online and in-person purchases but often come with currency conversion fees and other charges;
- Online payment platforms (digital wallets and apps): These typically operate with local banking networks in multiple countries, offering competitive rates, faster transactions, and user-friendly interfaces;
- Stablecoins and crypto assets: Allow for fast and near-instant settlement via blockchain, but require attention to local crypto regulations;
- Buy Now, Pay Later (BNPL): Enables consumers in one country to purchase from merchants in another and pay in installments;
Each method has its own characteristics in terms of cost, speed, security, and geographic reach. The best option depends on the specific needs of the transaction.
The future of payments goes beyond borders
With business digitization and financial technology evolving rapidly, cross-border payments are becoming a vital part of global operations, helping connect countries, platforms, and people across the world. In 2024 alone, this market processed over USD 190 trillion, with forecasts projecting growth to USD 320 trillion by 2032 (FXC Intelligence).
Still, challenges remain. Each country has its own infrastructure, compliance standards, consumer behaviors, and currency exchange mechanisms. Businesses that fail to navigate these complexities may face inefficiencies, penalties, and friction in scaling.
That’s why partnering with a provider like FacilitaPay makes all the difference. With robust infrastructure and proprietary technology, we help global companies stay compliant, integrate local payment methods, convert currencies, and access expert support, all through a single, customizable API.
Talk to our specialists and discover how FacilitaPay can help your business cross borders with confidence and unlock new growth opportunities.
