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FINTECHS

Chinese startup brings cross-border payments to Brazil’s small businesses

For all the world’s advances in financial technology, moving money across borders still poses challenges — especially for small businesses navigating regulatory hurdles and limited access to traditional financial institutions.

XTransfer, a Chinese startup aiming to simplify international payments for small importers and exporters, sees an opportunity in that gap. Founded in 2017 by former Ant Group executives, the company says it now processes roughly 2% of China’s trade volume. It raised USD 138 million in a Series D round in 2021, led by US-based 1D Capital Partners, reaching a valuation north of USD 1 billion.

With operations in roughly 20 countries, XTransfer pitches itself as a kind of “PayPal for small businesses.” It is now entering Brazil and other Latin American markets.

XTransfer offers a platform where businesses can open accounts to send and receive payments abroad. It partners with local banks and fintechs to lower costs and accelerate transactions — cross-border B2B payments can take up to 14 days and involve multiple intermediaries, according to a 2024 report by Ebanx, a Brazilian fintech now working with XTransfer.

The global business-to-business digital payments market is expected to grow by 11% annually through 2027, according to the Capgemini Research Institute. Emerging markets in Latin America, Asia and Africa could account for 40% of global volume by then.

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