A new report from Mastercard, developed in collaboration with Payments and Commerce Market Intelligence (PCMI) and K2, highlights significant challenges faced by small and medium-sized enterprises (SMEs) in Latin America regarding international payments. The study, titled “Small businesses, big opportunity: Unlocking SME potential in Latin America’s cross-border space,” indicates that the current global payment system, primarily designed for large corporations, does not adequately serve the needs of SMEs, leading to disproportionate costs, delays, and a lack of transaction visibility.
The research reveals that three out of five SMEs in the region currently engage with international suppliers. In markets such as Mexico and Brazil, 75% of SMEs plan to expand their global partnerships. However, these businesses encounter high fees, uncompetitive exchange rates, and lengthy processing times. For example, in Brazil, 80% of international payments take more than four days to settle, with one in five exceeding ten days. Sending just $250 can incur average fees of 23.3%, escalating to as much as 30% depending on the destination country.
These inefficiencies are critical given that SMEs constitute 98% of the business landscape and account for 60% of employment in Latin America. Such payment hurdles can disrupt supply chains and result in lost business opportunities. While banks currently manage 75% of these payment flows, the report suggests they must adapt to technological advancements to maintain their market position.
Mastercard Move, Mastercard’s suite of money movement capabilities, is presented as a solution to these obstacles, aiming to enhance the international payment experience for SMEs. Mastercard Move offers more cost-efficient payments by reducing intermediaries and hidden fees, ensures total transparency with real-time traceability of costs and delivery times, and provides faster settlements, including same-day or real-time options in over 150 markets.
Walter Pimenta, Executive Vice President, Commercial and New Payment Flows at Mastercard for Latin America and the Caribbean, commented on the findings. “Small and medium-sized businesses are the silent engine of Latin America. They innovate, generate employment, and keep our economies alive. To reach their true potential, they need more than resilience: they need a financial infrastructure that accompanies them on their global journey,” Pimenta stated. He added, “We are reimagining how international payments should work for SMEs: simply, securely, and adapted to their realities. With Mastercard Move, we help banks lead this transformation, providing them with tools to offer comprehensive solutions that impact where it matters most: liquidity, agility, and trust. Today’s SMEs are tomorrow’s multinationals. And together, we can build the infrastructure they deserve.”
Mastercard plans to continue collaborating with financial institutions to modernize payment infrastructure across Latin America. The comprehensive report is available for download.
The research was conducted between January and March 2025 through a partnership between Mastercard, PCMI (a payments industry market intelligence firm), and K2 (a business development consulting firm). The methodology included a Cost & Service Assessment by K2, which tracked 70 transactions across eight origination and eight destination countries to evaluate costs, exchange rates, fees, and processing times. Additionally, 36 in-depth interviews were conducted with key industry stakeholders, including 18 SMEs, 14 financial institutions, and 4 Mastercard representatives. The study also incorporated an analysis of publicly available data concerning SME challenges in cross-border payments.
