Brazil, Mexico, Argentina Capture 64.7% of LatAm Cross-Border Payment Revenue in 2024
E-commerce dominance and digital payment adoption fuel concentration, but regulatory and inclusion gaps persist.
By Priya Sharma·March 13, 2025·5 min readOrionmano Industries
E-commerce dominance and digital payment adoption fuel concentration, but regulatory and inclusion gaps persist.
The Big Three Dominate LatAm Cross-Border Payments
Brazil, Mexico, and Argentina collectively accounted for 64.7% of Latin America's cross-border payment revenue in 2024, according to industry research compiled from FXC Intelligence, PCMI, OpenFX, Statista, and other sources. The concentration reflects the region's uneven digital landscape, where Brazil’s e-commerce scale, Mexico’s market depth, and Argentina’s distinctive mix of trade and cryptocurrency-driven flows together represent nearly two-thirds of total revenue.
Mexico and Brazil, the region’s two largest economies, are the clear leaders in this industry, driven by e-commerce activity. Argentina’s high cryptocurrency adoption and substantial trade flows contribute significantly to cross-border payment volumes, cementing its position as the third pillar.
Exhibit
Share of Latin America Cross-Border Payment Revenue by Country Group, 2024
Brazil, Mexico, and Argentina collectively account for nearly two-thirds of the region's cross-border payment revenue.
Brazil accounts for 55% of total e-commerce sales in Latin America, making it the undisputed regional leader. E-commerce volume in Brazil reached US$346 billion in 2024, with projections of US$586 billion by 2027, representing a 19% compound annual growth rate (CAGR). E-commerce penetration has reached 90% among Brazilian adults, a remarkably high figure that underscores the market's maturity.
Domestic e-commerce still commands the lion's share, making up 92% of sales. However, cross-border activity is expected to expand by 32% in 2025, outpacing the 20% growth forecast for domestic sales. This acceleration is supported by the proliferation of local payment methods such as Pix and Boleto, which have become deeply embedded in Brazilian consumer behavior and are now being adopted by international merchants entering the market.
International fintechs are taking note. Airwallex, a B2B payments player from Australia, secured a payments license in Brazil in 2024 and 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. dLocal, a regional payments champion, reported a 67% year-over-year increase in cross-border total payment volume in 2024, reaching a record US$26 billion.
Mexico: The Second Pillar of Cross-Border Growth
Mexico is the region's second-largest e-commerce market, with 2024 volume of US$97 billion, according to Payments and Commerce Market Intelligence (PCMI). Adult e-commerce penetration stands at 74%, reflecting deep integration of digital commerce into Mexican consumers' lives.
Cross-border activity is rising in Mexico, supported by the same digital payment innovations driving growth in Brazil. Regulatory sandboxes in Mexico enable fintechs to test new payment solutions, fostering an environment where alternative payment methods can gain traction. The combination of a large consumer base, growing internet penetration, and increasing comfort with digital transactions positions Mexico to maintain its role as the second-largest contributor to cross-border payment revenue in the region.
Argentina’s Distinctive Role: Trade, Crypto, and Digital Payments
Argentina’s contribution to cross-border payment revenue stems from a unique combination of trade flows and cryptocurrency adoption that distinguishes it from its neighbors.
The e-commerce sector generated US$26.7 billion in 2023 and experienced 248% revenue growth in 2024. Digital wallets are on track to make up 59% of e-commerce payments by 2027, with mobile devices already accounting for 70% of online purchases. Mobile wallets like Mercado Pago dominate everyday spending; the central bank’s Transferencias 3.0 system, which makes QR payments interoperable across banks and wallets, reached 62.6 million transactions in December 2024 and continues to rise.
Argentina has the highest cryptocurrency adoption rate globally: 30% of the population owns digital assets in 2024. The country processes US$91.1 billion in crypto volume—over 61% of Latin America’s entire stablecoin market. This adoption is driven by macroeconomic instability and currency volatility, as Argentines use stablecoins to preserve value and facilitate cross-border transactions.
Trade flows further amplify cross-border payment volumes. Brazil is Argentina's top export destination (US$13.62 billion, 17.1% of total) and top import source (US$14.35 billion, 23.6%). The United States is the second-largest export market (US$8.1 billion). These bilateral trade corridors generate substantial B2B cross-border payment activity.
Regulatory and Digital Adoption Challenges Remain Key Hurdles
Despite the growth, significant barriers prevent faster, cheaper cross-border payments across the region. Regulatory complexity and widely varied macroeconomic conditions and currency volatility hinder progress toward faster, more cost-effective and transparent cross-border payments, according to FXC Intelligence.
Latin American retail payment costs remain significantly above G20 targets, and remittance pricing is well above United Nations sustainable development goals. The region sees higher costs on sends to and from Latin America and the Caribbean, and remittance corridors within the region remain expensive relative to global benchmarks.
Over 200 million adults in Latin America remain unbanked, limiting access to digital payment systems and constraining the potential market for cross-border services. While mobile-first services are helping to fill gaps, the scale of financial exclusion remains a structural challenge.
More than 180 central banks globally are exploring digital currencies; in Latin America, central bank digital currency (CBDC) initiatives are ramping up but face implementation hurdles. Regulatory sandboxes in Brazil and Mexico are encouraging innovation, but the uneven pace of regulatory development across the region complicates cross-border interoperability.
As Brazil, Mexico, and Argentina deepen their lead through regulatory innovation, CBDC adoption, and expanding digital payment infrastructure, bridging the unbanked gap and lowering remittance costs will be essential for sustained regional growth. Without addressing these structural barriers, the revenue concentration in three economies may widen further, leaving smaller markets disconnected from the benefits of digital cross-border payments.
