Unlocking local markets: how investment companies can expand in Latin America

The global investment market is more accessible than ever, but companies looking to expand into new territories face specific challenges, especially in regions like Latin America. While the demand for global assets is growing rapidly, barriers such as incompatible payment methods, regulatory differences, and insufficient infrastructure continue to limit many local investors access to international markets.

By offering financial solutions tailored to the regional reality, investment companies not only facilitate new client acquisition but also position themselves strategically in one of the world’s fastest-growing regions.

Why expanding into local markets is a smart growth strategy

The growing demand for financial diversification has driven Latin American investors to explore opportunities outside their domestic markets. The rise of digital investment platforms and the increasing popularity of innovative financial technologies are reshaping investor behavior.

Recent data highlights this transformation:

• The digital ecosystem in Latin America is expanding rapidly, with a strong adoption of digital platforms among local investors. Reports from Statista confirm a steady increase in the number of users engaging with financial services in the region. (Source: Statista)
• The fintech sector in Latin America is growing at an average annual rate of 28%, consolidating the region as one of the world’s leading financial innovation hubs. (Source: Insper)
• Reports from McKinsey highlight that digitalization is opening new opportunities in the financial market, with fintechs expected to grow at a double-digit annual rate through 2028. (Source: Statista)

This combination of digital transformation and growing access to financial solutions makes Latin America one of the most promising markets for investments. However, success in this region requires adopting strategies that cater to local specifics, particularly when it comes to integrating payment methods that investors already know and trust.

Digital transformation in Latin America: a landscape of new opportunities

Accelerated digitalization has turned this region into one of the most dynamic markets for tech and innovation. This growth is supported by a thriving fintech ecosystem that is constantly expanding. According to the Inter-American Development Bank (IDB), the region is now home to more than 3,000 fintech companies, making it one of the largest fintech ecosystems in the world.

Additionally, a study by Mordor Intelligence reveals that the digital transformation market in the region is expected to grow from USD 107.23 billion in 2025 to USD 242.10 billion in 2030, with a compound annual growth rate (CAGR) of 17.69%.

This digital expansion is opening the door to new services, such as open banking, instant payments, and digital lending platforms, integrating more of the population into the digital financial ecosystem. This movement not only facilitates access to financial services but also fosters a more competitive and innovative business environment.

Overcoming barriers: strategies for sustainable expansion

Expanding into local markets presents exponential opportunities but requires a strategic approach to overcome specific challenges. Among the most common obstacles faced by investment companies are:

Fragmented and regional payment methods

• Unlike more homogenous markets, Latin America offers a diverse range of preferred payment methods among local investors. Regional solutions such as Pix in Brazil, SPEI in Mexico, and PSE in Colombia dominate the landscape, while international cards face resistance due to high fees and low familiarity. Companies that integrate local methods see significant improvements in customer conversion and user experience.

Regulatory complexity

• Each country in the region has specific capital movement rules and financial regulations, making it essential for companies to understand the local regulatory landscape to operate safely and sustainably. Combining in-depth regional knowledge with advanced technology enables businesses to navigate this complexity and mitigate compliance risks effectively.

User experience

• Transaction abandonment due to payment difficulties is a recurring problem for investment platforms. Offering a seamless, locally adapted payment experience is critical for boosting conversion and retention. Studies show that platforms integrating local payment methods experience an average 20% increase in conversion rates. (Source: E-commerce Brazil)

Operational efficiency and cost reduction

• Relying on international intermediaries for payment processing raises costs and reduces operational efficiency. Companies that adopt local payment solutions can reduce these costs by up to 30%, optimizing financial flows. (Source: Deloitte)

A real-world example is our partner, Webull, a leading investment platform, which identified Brazil as a strategic growth opportunity. To ensure an efficient market entry, we helped integrate Pix, Brazil’s primary local payment method. This move eliminated entry barriers and simplified the process for local investors, improving the overall experience.

Scaling with efficiency and security

Latin America’s investment market offers a strategic opportunity for global companies seeking growth, provided they adopt solutions tailored to local realities. Integrating regional payment methods, navigating regulatory complexity, and delivering a seamless user experience are the pillars of success.

FacilitaPay plays a crucial role in this process: helping companies expand securely and at scale. With cutting-edge payment solutions and strategic insights, we empower businesses to overcome barriers and thrive in this fast-growing market.

Ready to explore these opportunities? Get in touch with our specialists!