A software company in Berlin has signed its first customers in São Paulo and Mexico City, and the board wants a LatAm payments plan for next year. Each market has its own currency, payment habits and rules, and the team cannot build them all at once. Why do companies expanding into Latin America often start with Brazil?
Brazil is the region's largest economy and runs instant payments at national scale through Pix, with a defined framework for FX and virtual assets. Starting there means building BRL collection, payouts and compliance once, then extending the same setup to other corridors.
What makes Brazil different from other Latin American markets?
Size comes first. In 2025, Brazil's GDP was about USD 2.28 trillion, ahead of Mexico at USD 1.83 trillion and every other economy in the region, according to World Bank data. That scale lets a company test pricing, demand and operations in one market before adding others. Customers also expect to pay in reals through methods they already use, so a local offer usually starts with local collection.
Payments are already digital. Pix, the instant payment system created by the Central Bank of Brazil (BCB) under BCB Resolution No. 1, of August 12, 2020, runs 24/7 and credits accounts in seconds. In September 2026, Pix processed about 7.2 billion transactions worth BRL 3.2 trillion, according to the BCB's Pix statistics.
The rules are written down. FX operations follow Law 14,286, of December 29, 2021, and the BCB's FX regulation. Virtual asset service providers (PSAVs, the Brazilian term for VASPs) have had their own authorization rules since February 2, 2026, under BCB Resolution 520, of November 10, 2025.
What payment setup does Brazil require?
Most companies entering Brazil need four pieces in place before launch:
BRL collection from customers, mostly through Pix
BRL payouts to suppliers, contractors or users
An FX operation with an authorized institution to bring money in or send it abroad
Know-your-customer (KYC) and anti-money laundering checks on customers and counterparties
The step-by-step version is in the payments checklist for entering the Brazilian market, and the main payment methods are covered in payments in Brazil for foreign companies.
These pieces can come from one provider or from several. Fewer providers mean fewer integrations and reconciliations, but each provider's licenses and coverage then define what the company can do in Brazil.
Which challenges should you expect?
1. FX and IOF
Every movement between BRL and another currency is an FX operation, and Brazil charges IOF on it. Under art. 15-B of Decree 6,306, of December 14, 2007, inflows pay 0.38% as a rule, export revenue pays zero, and outflows not covered by a specific rule pay 3.5%. The classification of each flow defines the rate, so it belongs in the business plan.
2. Local entity or partner
A company can open a Brazilian subsidiary with its own banking relationships, or work with a licensed partner that provides accounts and payment rails. A subsidiary gives full control but takes time and local structure. A partner shortens the path, and its licenses and coverage become part of the operation. Some companies start with a partner and revisit the subsidiary decision once volume grows.
3. Settlement in BRL and repatriation
Revenue arrives in reals. Moving it abroad means converting BRL into another currency through an FX operation, with documentation that matches the nature of the flow, such as payment for services or dividends. How often to convert, and in what amounts, affects both cost and treasury planning. Until it is converted, the BRL balance is also exposed to exchange rate moves.
How do you extend LatAm payments from Brazil to the rest of the region?
Once BRL collection, payouts and compliance work, the same integration can serve other corridors, if the provider covers them. The questions shift from building rails to choosing routes: which currencies, which local payout methods and how each corridor settles.
Brazil also tests the operating model: onboarding and KYC flows, reconciliation, customer support in Portuguese and treasury in a currency that moves against the euro and the dollar. Getting these right in one large market makes each next country faster to add.
Stablecoins can act as a bridge between corridors, moving value 24/7 between providers in different countries. In Brazil, buying, selling or exchanging stablecoins and making international payments with virtual assets are FX market operations since February 2, 2026, under BCB Resolution 521, of November 10, 2025, so FX rules apply to them.
What does a Brazil-first launch look like in practice?
A European SaaS company sells subscriptions to Brazilian customers and bills about BRL 400,000 a month. The figures are illustrative.
Customers pay in reals through Pix, and the BRL collected is credited to the company's account with its provider.
Once a month, the company converts the balance into euros. At an illustrative rate of BRL 6.20 per euro, BRL 400,000 is about EUR 64,500 before spreads and fees.
The conversion is an FX outflow from Brazil. If it falls under the general 3.5% rate, IOF is BRL 14,000; the rate depends on how the flow is classified.
The euros reach the company's account in Europe, and the same setup can later pay contractors in BRL or collect in other currencies.
Planning your Latin America launch? See how to collect and pay out in BRL without a local entity.
How does Transfero support companies entering Brazil?
Transfero's Banking as a Service (BaaS) lets companies move money in Brazil without becoming a bank, with banking rails that do not require setting up a local entity or obtaining a local license. Companies collect and send BRL funds through Pix, and most clients can launch within a few weeks. Beyond Brazil, the Transfero Payments Network (TPN) connects banking rails, blockchain networks and liquidity providers through a single API.
Banking as a Service: digital accounts in BRL on a licensed payment institution structure, with collection and payouts through Pix.
99.999% uptime on the BaaS platform.
Cross-border payments with predictable 24/7 payouts across multiple countries and more than 180 payout markets.
More than 9.8 million transactions processed in 2025.
Questions to ask before choosing your entry setup in Latin America
Which Latin American markets matter in the next two years, and in what order?
Will you collect, pay out or both in Brazil, and in what volume?
Do you need a local entity, or can a licensed partner provide the rails?
How will each flow be classified for FX and IOF?
How often will you convert and repatriate BRL?
Which corridors beyond Brazil should the same integration cover?
Where can stablecoins help, and under which rules in each country?
Talk to our team about starting your LatAm expansion in Brazil: contact Transfero.
Frequently asked questions
Do I need a Brazilian entity to collect payments in Brazil?
Not always. A company can set up a subsidiary or work with a licensed partner that provides accounts and payment rails in Brazil. The choice depends on volume, the products sold and how the company wants to handle FX and taxes, which should be reviewed with local advisors before launch.
What is Pix and why does it matter for foreign companies?
Pix is the instant payment system created by the Central Bank of Brazil. It runs 24/7, credits accounts in seconds and processed about 7.2 billion transactions in September 2026. For foreign companies, it is a direct way to collect from Brazilian customers and pay out in reals, through an institution that offers Pix.
How long does it take to set up payments in Brazil?
It depends on the model. Opening a subsidiary and its bank accounts takes longer than working with a licensed partner that already has the rails. Integration time also depends on volume, compliance reviews and the flows needed, such as collections, payouts and FX, so it helps to define them before talking to providers.
Can the same integration pay out to other countries?
It can, when the provider covers those corridors. Networks that connect banking rails, local payout partners and blockchain networks let a company add countries without a new integration for each one. Before signing, check which corridors and currencies the provider supports, how each one settles and what documentation each country requires.
