Nium ramps up expansion plans in Latin America

Nium, a specialist in real-time cross-border payments has announced it is bolstering its presence in Latin America.

According to the firm, it applied for a Payment Institution Licence in Brazil, this month, so it can provide payment services to clients including managing funds locally in BRL and real-time payments through Pix.

Additionally, Nium said it is seeking FX authorization in Brazil to enhance its foreign exchange transaction capabilities. By applying for essential licenses, joining key fintech associations, expanding its employee presence, and signing new customers the company has been ramping up efforts in the region.

This includes a recently announced partnership with BS2, a digital bank in Brazil specializing in fintech solutions for businesses. Nium has also 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.

Speaking on the expansion, Christina Hutchinson, VP of Business Development LATAM at Nium the company has been building and scaling local payout rails across the entire region to primarily to serve 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,” she said.

A Growing Market

The moves made in the region support significant growth anticipated in Latin America. According to a report by McKinsey & Company, 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, R$11.8 trillion in transactions were processed, a 60% increase compared to the same period in 2023.

Earlier this year, Seamless Xtra Editor, Mark Dowdall spoke with with Nium’s Anupam Pahuja about the B2B digital payments market, a new deal with Emirates NBD and why real-time money transfer could be the next big thing.