Fintech giant Airwallex is charging into Latin America with a
two-pronged strategy, acquiring Mexpago and reporting record-breaking profits.
Show Me the Money: Airwallex’s Profits Are Skyrocketing
Not only is Airwallex expanding aggressively, but it’s also raking in
serious cash. The company’s year-on-year profits have surged, fueled by a
record-breaking $130B in transactions, up 30% since August, over the past
year. That’s no small feat in a market where fintech competition is fierce. Much of this growth can be attributed to Airwallex’s expansion into new
regions and its ability to offer businesses a compelling alternative to
traditional financial institutions. Since the first quarter of 2024, the
company has achieved a 78% year-over-year increase in gross profit and expanded
its customer base by 50%, now serving over 150,000 businesses worldwide. With
an increasingly globalized economy, businesses need efficient ways to move
money across borders without the usual headaches of high fees, slow processing
times, and outdated banking networks.
💡 Scaling across borders, minus the complexity”With Airwallex’s 60+ licences, we only need 1 account to make payments and track transactions across multiple entities.” — Dominic Ong, CFO, @endowus 🏆 Endowus needed a smarter way to manage global finances—without multiple… pic.twitter.com/GL85MuF6IK
— Airwallex (@airwallex) February 11, 2025
The surge in profits comes as businesses worldwide continue embracing
digital payments. Airwallex’s focus on cross-border transactions has positioned
it as a crucial player in the global fintech space, and its latest LatAm
expansion is set to amplify that success even further.
Airwallex Goes Big in LatAm
If there’s one thing fintech powerhouses love, it’s global domination.
Airwallex is taking a major leap into Latin
America (LatAm), a region buzzing with fintech potential. And it’s not just
dipping a toe—it’s cannonballing in with a dual-market
strategy targeting both Mexico, where it has acquired Mexpago, and Brazil,
where it’s acquired regulatory approval in the form of a payment institution license
from the Banco Central do Brasil.
Latin America has become a hotspot for fintech innovation, with its
underbanked population rapidly adopting digital payments and mobile banking.
Airwallex is capitalizing on this surge, providing businesses with more
efficient, low-cost cross-border payment solutions that traditional banks
struggle to match. Given that LatAm businesses often face high transaction fees
and slow settlement times, Airwallex’s entry is poised to shake up the market.
This is certainly a bold more for Airwallex. As competition in the
digital payments space intensifies, the company is making sure it secures a
front-row seat in one of the fastest-growing fintech markets. With LatAm’s
digital economy on the up, Airwallex is betting big on the region’s
cross-border payment needs.
Or Liban, CEO of Airwallex Israel and the Middle East, said of the expansion, “Airwallex is committed to providing Israeli companies with the ability to expand their businesses into Latin American countries, especially Brazil and Mexico. Through our global financial infrastructure and the licenses we have received in these two major economies, we offer a reliable, efficient, and cost-effective platform for executing cross-border and local payments.”
Two Markets, One Vision: The Airwallex LatAm Playbook
Airwallex is going all in with a dual-market entry strategy, focusing
on Brazil and Mexico, the two largest economies in LatAm. The move is part of
its wider global expansion plan, aimed at making cross-border transactions
seamless for businesses in emerging markets.
🇧🇷🇲🇽 Hello, LATAM! We’ve secured a new licence in Brazil and completed our @MexPago acquisition, paving the way for businesses in the region to operate globally and vice versa. 🌟 As Brazil continues to lead in payment digitisation with innovations like PIX, we’re here to… pic.twitter.com/poCH8XrWeT
— Airwallex (@airwallex) January 16, 2025
Brazil’s fintech ecosystem is already thriving, thanks to regulations
favoring digital payments and the rapid
adoption of PIX, the instant payment system launched by the Central Bank of
Brazil. Meanwhile, Mexico, home to the second-largest economy in LatAm, is
experiencing a fintech boom, driven by increasing e-commerce penetration,
rising smartphone adoption, and a push for financial inclusion.
Airwallex is clearly positioning itself to become a go-to provider in
both nations, offering businesses a borderless financial infrastructure that
allows them to scale faster and manage payments more efficiently.
The Mexpago Power Move: Buying Its Way into Mexico
If you can’t build it fast enough, buy it. That’s exactly what
Airwallex did with its recent
acquisition of Mexpago, a prominent Mexican payments platform. The deal
gives Airwallex a direct entry into Mexico’s digital payments space, allowing
it to leverage Mexpago’s existing infrastructure and customer base.
Mexpago has built a solid reputation in the Mexican market, offering
businesses a streamlined payment processing experience. By integrating Mexpago
into its ecosystem, Airwallex instantly gains access to thousands of merchants
and financial institutions already using the service.
This acquisition isn’t just about market entry—it’s about instant
credibility. Mexpago already has strong merchant relationships and deep local
expertise, making it an ideal launchpad for Airwallex’s broader LatAm
ambitions. Expect a seamless integration of Mexpago’s services into Airwallex’s
ecosystem, bringing international-grade fintech solutions to Mexican
businesses.
Beyond that, Mexico’s cross-border trade connections, particularly with
the U.S., make it a critical market for Airwallex’s global ambitions. With
e-commerce booming and businesses needing faster, more cost-effective ways to
manage international transactions, Airwallex is stepping in at just the right
time.
With big moves in Mexico and Brazil, the Mexpago acquisition, and soaring
revenues, Airwallex is proving that it’s a force to be reckoned with. As the
company continues its expansion, all eyes will be on how it navigates
regulatory challenges, local competition, and the ever-evolving fintech
landscape. But one thing is clear: Airwallex isn’t slowing down anytime soon.
For more stories of international fintech, visit our dedicated archives.
This article was written by Louis Parks at www.financemagnates.com.
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