Xendit plans to expand operations in Latin America

Xendit, an Indonesian fintech firm that offers digital payments infrastructure, plans to launch in Mexico and Colombia by the end of 2025, with further expansion to Chile, Argentina, and Brazil set for 2026.

Xendit will compete with regional players such as Uruguay’s Dlocal and Brazil’s EBANX in Latin America’s fragmented payments sector.

The company aims to simplify cross-border payments for international businesses by offering a single API for multiple payment methods and countries.

Xendit’s entry comes as Latin America faces regulatory fragmentation and stricter anti-money laundering rules, which have led to tighter bank controls on cross-border transactions.

The company also plans to start operations in the US and Australia in Q2 2026.

The company processes over US$70 billion in payments annually across seven Asian markets and serves clients including Meta, Starbucks, Samsung, TikTok, and Shopee.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Xendit’s Latin America licenses remain undisclosed before its announced launch

Xendit holds licenses across Southeast Asia for payment gateway, funds transfer, remittance, plus electronic money services 1. Covered markets are Indonesia/Philippines/Singapore/Malaysia/Thailand/Vietnam/Hong Kong.
Nuvei, a Canadian processor, had its unit secure permits from Mexico’s National Banking and Securities Commission (CNBV) plus Banco de México to operate locally 2. Xendit has not provided similar clarity, so it may need licensed partners to offer cross-border payments 3, disbursements, or multi-currency balances 4.
Licenses in Latin America often require local infrastructure, compliance controls, plus capital. Requirements differ by country and by service type.

Software-as-a-Service (SaaS) vendors can step in as banks tighten Asia to Latin America corridors

US Treasury enforcement pushed Mexican banks to apply stricter Anti-Money Laundering (AML) checks on some Asia-related payments, driving demand for Know Your Customer (KYC) plus identity verification that meets local rules.
Mexico’s KYC and AML market will grow from $66.1 million in 2024 to $159.1 million by 2030 5. The 2019 Federal Law for the Prevention and Identification of Transactions with Illicit Funds requires checks on beneficial ownership and transaction origins 5. IDmission has integrated mobile biometrics, document capture, plus digital signatures into Mexican banks 6.
B2B SaaS compliance vendors can partner with incoming Asian processors that need local identity stacks. Digital identity is fragmented across Latin America, with Colombia/Chile/Mexico/Argentina/Brazil using different systems at varied maturity 7, which lets unified onboarding tools charge more for regional and multinational processors.