Focus on the region includes new customers, license applications and strategic partnerships
SÃO PAULO, Aug. 12, 2024 /PRNewswire/ -- Nium, the global leader in real-time cross-border payments, is strengthening its presence in Latin America by applying for essential licenses, joining key fintech associations, expanding its employee presence, and signing new customers. This continued expansion is a step towards Nium's commitment to revolutionizing the global payments landscape in this strategic region.
This month Nium applied for a Payment Institution License in Brazil, which will enable the company to provide payment services to clients including managing funds locally in BRL and real-time payments through Pix. Additionally, Nium is seeking FX authorization in Brazil to enhance its foreign exchange transaction capabilities. These licenses will elevate clients' trust in Nium's industry-leading risk and compliance processes, ensuring secure and efficient transactions.
"Latin America has established itself as a frontrunner in numerous cross-border use cases, particularly in global marketplaces where its e-commerce economy thrives in supplier corridors with Asia and Europe," said Prajit Nanu, Founder and CEO of Nium. "Recognizing this potential, we have been strategically investing in Latin America for years, securing major clients and expanding our operations. This ongoing growth empowers us to further bolster the region's vibrant and dynamic landscape."
Nium continues to expand its customer and partner footprint in Latin America. The company recently announced a partnership with BS2, a digital bank in Brazil specializing in fintech solutions for businesses. BS2 leverages Nium's Global FX product to reduce FX costs and enable real-time payouts between Brazil and key trading corridors like China and the UAE. BS2 also joined Nium's network of partner banks, acting as Nium's Brazilian Real (BRL) Correspondent Bank and assisting real-time payment settlement for cross-border Pix transfers.
Nium has been present in the region dating back to 2017. Recent customer wins, include Ouribank, Treviso, OZ Cambio, and Frente. Nium and Ebury, a leading fintech company specializing in SME transactions, also expanded their partnership to launch a groundbreaking global remittance service in Brazil. This collaboration allows businesses to send and receive fast, reliable, and affordable cross-border payments to and from Brazil.
In addition, Nium has joined ABRACAM (Associação Brasileira de Câmbio - Brazilian Exchange Association), an association representing institutions authorized by the Central Bank of Brazil (BCB) to conduct foreign exchange operations. This membership was strategically chosen as part of Nium's commitment to be part of and contribute to the Brazilian financial and cross-border market. This membership has numerous benefits, including regulatory advocacy, knowledge sharing, and enhanced market credibility. Nium now has access to industry insights, exclusive resources, and collaboration opportunities with key stakeholders, with the ability to influence policies and foster a supportive ecosystem for banking in Brazil.
"We've made significant strides this year in expanding our presence in LATAM," said Christina Hutchinson, VP of Business Development LATAM at Nium. "Nium is rapidly building and scaling local payout rails across the entire region to help better serve our target verticals, which are primarily banks, FIs, and platforms. We're also working to bring our travel offering and card issuance to the region, once our new licences are in place. Brazil specifically has the potential to be a global leader in digital payment innovation and our advancements in cross-border payment solutions are creating meaningful impacts on millions of lives worldwide."
Nium plans to grow its physical presence in the region, hiring strategic roles in business development and partnerships.
The moves made in the region support significant growth anticipated in Latin America. According to a report by McKinsey & Company issued in late 2023, both commercial and consumer-based cross-border payment transactions in Latin America grew by double-digit figures between 2021 and 2022. In 2020, the Central Bank of Brazil launched Pix, a real-time payment system that has rapidly become a key model in the region. Pix offers instant, account-to-account payments, is available 24/7 and has been widely adopted, with around ~800 direct and indirect participants. According to the Central Bank of Brazil, in the first six months of 2024, an astounding R$11.8 trillion in transactions were processed, a 60% increase compared to the same period in 2023. July 5th, 2024 was the network's highest transaction day on record with 224 million transactions processed. Nium provides direct global connections into Pix as part of its extensive global payments infrastructure.
Nium's report, "Navigating B2B Cross-Border Payments in Latin America," dives deeper into the opportunities in the region.
About Nium
Nium, the global leader in real-time, cross-border payments, was founded on the mission to deliver the global payments infrastructure of tomorrow, today. With the onset of the global economy, its payments infrastructure is shaping how banks, fintechs, and businesses everywhere collect, convert, and disburse funds instantly across borders. Its payout network supports 100 currencies and spans 220+ markets, 100 of which in real-time. Funds can be disbursed to accounts, wallets, and cards and collected locally in 40 markets. Nium's growing card issuance business is already available in 34 countries. Nium holds regulatory licenses and authorisations in more than 40 countries, enabling seamless onboarding, rapid integration, and compliance - independent of geography. The company is co-headquartered in San Francisco and Singapore.
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