How Can Businesses Send Money From LatAm to Europe?

Moving money across borders is at the heart of global business, yet for many companies operating between Latin America and Europe, this process is far from simple. Both regions are deeply interconnected through trade, services, and investment flows, but transferring funds efficiently across these geographies remains a persistent challenge.

Traditional payment rails are often slow, costly, and filled with regulatory hurdles. Businesses face high FX fees, unpredictable settlement times, and a lack of transparency. In emerging markets, these issues are amplified by limited access to reliable banking infrastructure and currency volatility. For companies that rely on regular transactions across continents, inefficiencies in the financial system can directly impact competitiveness and growth.

What do businesses need?

Cross-border trade highlights the importance of reliable financial infrastructure. Businesses require more than just access to payment systems. They need solutions that align with their operational realities. Four key requirements stand out:

Speed and certainty: When transfers take several days to complete, it can disrupt cash flow, delay supplier payments, and create uncertainty for partners on both sides of the Atlantic. Predictability is often just as important as speed.
Cost efficiency: Every transaction involves multiple layers of fees, from intermediary bank charges to FX spreads. For companies operating on tight margins, reducing these costs can make a meaningful difference.
Regulatory clarity: Compliance with local and international rules is critical. A lack of clear frameworks increases the risk of penalties or payment rejections. Businesses want transparent, reliable processes that safeguard both parties.
Access and flexibility: Companies trading in multiple markets need systems that handle different currencies and payment types. Relying solely on traditional banks can be limiting, particularly in countries where banking penetration is lower.

Using traditional methods

The most common method for international transfers between Latin America and Europe is through wire transfers using the SWIFT network. While widespread and trusted, this system is far from seamless.

A single transfer may pass through several correspondent banks, each charging a fee and adding processing time. Currency conversion can introduce additional costs, particularly in markets where liquidity in foreign exchange is limited. The result is that businesses often wait several days for payments to clear, while absorbing higher-than-expected costs.

These inefficiencies are magnified when companies need to make regular or high-volume transfers. For example, exporters may have to wait weeks before receiving funds, tying up working capital and slowing reinvestment. Smaller businesses and freelancers, who may not have strong relationships with international banks, often face even higher costs and longer delays.

New approaches emerging

To address these long-standing challenges, businesses are increasingly exploring alternative ways to move money across borders. Several solutions are gaining traction:

Digital assets and stablecoins: One of the most discussed innovations is the use of blockchain-based settlement. Stablecoins pegged to major currencies, such as the US dollar or euro, allow for near-instant cross-border transfers while avoiding the volatility associated with other digital assets. Once received, these can be converted into local currencies through licensed exchanges or payment platforms. This can be achieved by utilising a crypto payment gateway.
Payment platforms and fintechs: Specialist providers have built infrastructure that bypasses the traditional correspondent banking system, allowing for faster settlement and reduced costs. By leveraging technology and direct local integrations, these platforms provide a more seamless experience for businesses.
Local payout networks: Bridging the gap between digital transfers and local currency access is crucial. Local payout systems enable businesses to receive funds in their home currency without the friction of multiple conversions or intermediary banks. This makes global transfers more accessible to small and mid-sized enterprises.

Real-world use cases bridging LatAm and Europe

The benefits of adopting new methods for cross-border payments become clearer when looking at practical applications:

Export businesses: A Colombian coffee exporter receiving payments from European distributors can avoid lengthy bank delays and high FX fees by settling in digital assets and converting to local currency instantly.
Freelancers and digital agencies: A creative agency in Argentina working with European clients can reduce the impact of local currency volatility and gain faster access to funds.
E-commerce platforms: Latin American merchants selling into European markets can streamline settlements and reduce chargeback risks by integrating alternative payment methods.
Corporate treasury operations: Enterprises with subsidiaries across LatAm and Europe can use new settlement options for internal transfers, improving liquidity and cash flow management.

Looking ahead

Cross-border trade between Latin America and Europe is expected to grow significantly in the coming years. Strong demand for agricultural exports, the rise of digital services, and increasing consumer connections through e-commerce are creating more payment flows than ever before.

For businesses, the ability to move money efficiently is no longer just an operational issue – it is a strategic advantage. Companies that embrace more efficient, transparent, and cost-effective payment methods will not only reduce friction in day-to-day operations but also position themselves as reliable partners in the global marketplace.

As financial technology continues to evolve, the choice of cross-border settlement methods will expand further. The businesses that actively explore and adopt these innovations will be better prepared to navigate currency volatility, regulatory complexity, and the fast-changing demands of international trade.