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need efficient ways to move money across borders without the usual headaches of high fees, slow processing times, and outdated banking networks.

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.

Airwallex
Or Liban, Airwallex’s Head of Israel and Middle East; Credit: Niv Kantor

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.

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.

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Source: Finance Magnates