As emerging market economies continue to grow and consumer purchasing power strengthens, numerous global cross-border payment institutions are accelerating their efforts to tap into this blue ocean market.
Since last year, the large Brazilian cross-border payment platform EBANX has been particularly active. In 2025, EBANX obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) and launched operations in the Philippines. In early 2026, EBANX established its Asia-Pacific headquarters and appointed a regional CEO in Singapore.
João Del Valle, Co-founder and Global CEO of EBANX, recently stated that over the next decade, emerging markets are expected to add over 1 billion new consumers, compared to just 28 million new consumers in developed economies. This surge is projected to drive a 32% increase in the global consumer base. This indicates that for cross-border payment institutions to sustain rapid business growth, they must firmly grasp the opportunities presented by emerging markets.
EBANX is not alone in this pursuit. In recent years, companies like dLocal, PayerMax, and Antom have also been vigorously expanding their presence in emerging markets, focusing on cross-border e-commerce and B2B trade.
According to EBANX's research report "Beyond Borders 2026," over the next ten years, consumer growth rates in India (62%), the Philippines (55%), Kenya (52%), Indonesia (42%), Nigeria (40%), and Egypt (36%) are all expected to exceed the average growth rate for emerging markets (32%). These regions are becoming key areas for cross-border payment institutions expanding into emerging markets.
However, establishing a foothold in these markets presents three major challenges. First, payment ecosystems are fragmented and vary by country, requiring payment institutions to use effective financial technology to integrate mainstream local payment methods and build comprehensive localized payment services. Second, differing financial regulations and complex compliance requirements necessitate dedicated teams to ensure all payment operations fully meet regulatory standards. Third, significant variations in consumer payment preferences mean institutions must deeply understand local user habits to build payment networks that enhance user experience, efficiently connect users with merchants, and drive sustained consumption growth.
"The success of cross-border payment institutions in capturing emerging market opportunities largely depends on their ability to create an excellent user payment service experience," emphasized João Del Valle. He noted that the proliferation of artificial intelligence (AI) technology is intensifying competition centered on payment service quality.
Currently, an increasing number of cross-border payment institutions are integrating AI into their payment systems. They are using AI to identify payment routes that maximize fund settlement efficiency and minimize operational costs for consumers and merchants, while also leveraging AI to enhance efficiency in tasks like bank reconciliation, thereby simplifying numerous payment processes.
However, the widespread application of AI also presents a double-edged sword. Payment institutions now face growing risks, such as "AI fraud," representing a new challenge that must be addressed as they use AI to deepen their presence in emerging markets.
**Addressing Payment Fragmentation**
Overall, the rapid growth of the consumer base in emerging markets is driven by three main factors: sustained economic growth leading to increased wealth and purchasing power; the rapid adoption of smartphones, enabling more people to purchase goods and services via online platforms; and the rise of new payment methods like mobile payments, e-wallets, and instant payments, which make transactions more convenient. This convenience has helped push daily consumer spending above $13, leading many research institutions to classify these individuals as "consumers."
The "Beyond Borders 2026" report indicates that, driven by these factors, consumption growth in emerging markets will accelerate over the next decade. Consumer spending in Southeast Asia and India, Sub-Saharan Africa, and Latin America is projected to grow by 147%, 122%, and 66% respectively, all exceeding the 49% growth expected in Europe, the US, and Canada.
"This is one of the key reasons we upgraded Singapore to our Asia-Pacific headquarters, building on our existing global funds settlement center there," João Del Valle explained. He stated that the Asia-Pacific headquarters will serve as a pivotal point for strengthening EBANX's regional presence, focusing on three primary tasks: fostering merchant growth in the region, integrating more localized payment methods to enhance payment capabilities, and deepening cooperation with more fintech ecosystem partners.
In his view, the rapid growth in both consumers and consumer spending in emerging markets brings not only business opportunities but also profound changes in payment methods and service experiences.
Unlike developed economies, where credit card penetration is extremely high (91%), credit card ownership is significantly lower in emerging markets. For instance, in Brazil, Argentina, Peru, Malaysia, South Africa, Egypt, India, and Indonesia, the percentages of adults owning credit cards are only 44%, 30%, 13%, 13%, 10%, 6%, 6%, and 6% respectively. Consequently, payment habits in these markets have largely skipped the credit card phase, transitioning directly from cash to e-wallets, account-to-account (A2A) transfers, instant payments, and mobile payments.
It is important to note that online payment behaviors vary significantly across emerging markets, exhibiting a clear pattern of fragmentation. For example, digital wallets are most prevalent in the Philippines; mobile money dominates in Kenya; Brazil utilizes a mix of Pix (the national instant payment system), bank cards, vouchers, and local wallets; and India's digital payment ecosystem is led by the instant payment system UPI.
João Del Valle pointed out that in Brazil and India, Pix and UPI, known for their speed, low cost, and accessibility, are widely used for personal transfers and e-commerce payments, reshaping the local digital payment landscape.
He believes the future development of the payment industry in emerging markets will be characterized by a mobile-first approach and the increasing maturation of localized payment ecosystems. In Nigeria, the local card scheme Verve has increased debit card penetration from 35% to 48% over the past three years. In Egypt, the government-backed local card payment system Meeza is expanding financial service coverage. In Mexico, digital wallets like Mercado Pago are gaining ground in B2C payments, while B2B payments are shifting towards A2A transfers. In Brazil, driven by the widespread adoption of Pix, both B2B and B2C payments are becoming highly concentrated in A2A transfers.
"Under this new trend, global companies in various digital economy sectors—such as e-commerce, mobility services, online gaming, and streaming—must first establish localized payment service systems tailored to local user preferences to achieve better revenue growth when expanding into these markets," João Del Valle stated. He noted that EBANX first partnered with Chinese merchants to enter the Brazilian market in 2012 and established an office in Shanghai in 2019. To date, EBANX has helped numerous Chinese e-commerce companies expanding overseas to integrate with localized payment systems in various emerging markets and build positive user payment experiences, assisting them in achieving growth. In the future, EBANX plans to collaborate with more Chinese companies in SaaS, mobility services, streaming, and online gaming to support their successful expansion abroad.
He also predicted that leading Chinese mobility service providers, who already hold significant market share in Latin America, could achieve even greater success by establishing more comprehensive localized payment systems to further enhance the user payment experience.
**AI Engine Shaping a New Payment Paradigm**
With the increasing application of AI technology in e-commerce and payments, João Del Valle also highlighted another significant trend: the rise of AI-driven automated transactions in emerging market payment industries.
"AI is already beginning to reshape how consumers in emerging markets shop online," he said. Driven by large language models and AI agents, consumer habits are shifting from "browsing-based shopping" to "conversational commerce," with more AI agents deeply involved in assisting consumers with purchase decisions and transaction execution.
Research from institutions like McKinsey and Deloitte indicates that 10% of consumers have already started their online shopping journey using AI, and 20% are willing to let AI make purchases on their behalf. It is projected that by 2030, approximately 30% of global e-commerce transaction value will be influenced by AI agents, potentially driving $17.5 trillion in global transaction volume through automated operations.
In light of this trend, cross-border payment institutions need to deeply embed their payment service systems within the AI-driven e-commerce shopping process to further enhance the user payment experience.
João Del Valle revealed that the growing prevalence of AI-driven automated transactions is also transforming the payment settlement processes of these institutions. For instance, in processing e-commerce payments and fund settlements, institutions must use AI to quickly identify the most efficient and lowest-cost payment routes for consumers and merchants. In bank reconciliation operations, AI-powered payment systems need to automatically generate payment documents for e-commerce transactions to facilitate bank reviews for anti-money laundering purposes.
He also noted an interesting phenomenon: an increasing number of businesses in emerging markets want to replicate the fast and convenient experience of B2C e-commerce payments in B2B trade. For example, companies seek to use AI and other technologies for rapid fund transfers and automated compliance checks during procurement.
"However, this also brings challenges. If an AI system malfunctions during a consumer's purchase or a company's procurement, who is responsible?" João Del Valle pointed out. A more severe issue is the proliferation of AI-powered payment fraud, requiring payment institutions to build stronger firewalls to combat these threats.
Simultaneously, the rapid growth of digital currencies in emerging market payments has captured the attention of many cross-border payment institutions. The "Beyond Borders 2026" report shows that in countries like Brazil, Argentina, Thailand, and Vietnam, over 15% of the population holds digital currencies, with this figure reaching around 20% in Turkey.
João Del Valle believes that the transfer speed and global accessibility of digital currencies are making them an increasingly popular payment choice for e-commerce in emerging markets. However, robust anti-money laundering frameworks for digital currency payment settlements still need development. Additionally, the fee structure for digital currency transfers could impact their future adoption.
To build strong competitive advantages in the forthcoming "AI + payments" era, several cross-border payment institutions have sought new funding rounds since last year to increase R&D investment in this area.
When asked if EBANX would pursue a new funding round, João Del Valle stated that following a $430 million equity financing round in 2021, EBANX has sufficient capital reserves to support its investments in "AI + payments" R&D. However, he indicated that EBANX might formulate an IPO plan within the next two years. By going public, the company aims to enhance its business influence in emerging markets and better capitalize on opportunities in this blue ocean market.
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