Introduction
Large corporations face significant challenges in international payments, including slow processing times, high costs, and fragmented systems. These issues are particularly problematic for multinational companies moving millions of dollars daily. In this context, fintech companies have emerged as agile actors and key catalysts for transforming the traditional financial sector.
The Challenge of International Payment Standardization
One major obstacle for multinational corporations is the lack of standardization in international payments. Each country has distinct regulatory frameworks and settlement systems, leading to delays, errors, and increased costs. This complexity has discouraged traditional financial institutions from offering effective international payment solutions, according to Keo, a payments infrastructure firm.
The Role of Banks and Fintech Collaboration
“Banks play a crucial role in protecting consumer money and accessing funds at lower costs. To scale financial technology innovations for transactional payments, it’s essential to form alliances with banks. Proven business models enable fintech companies to establish these partnerships, allowing for faster growth,” explained Paolo Fidanza, Keo’s CEO.
Technological Advancements in International Payments
Keo asserts that technology is enabling greater bank participation in international payments. Tools like blockchain and Artificial Intelligence allow banks to fund operations without assuming full risk or directly intervening in each transaction. These technologies are building a more efficient and collaborative payment infrastructure, where banks and fintech work together to enhance the corporate experience.
Benefits of Technology for Financial Institutions and Corporations
“These technologies significantly help financial institutions and corporations process payments more efficiently and access more agile credit options, especially for critical purchases directly related to their revenue generation capacity. As a fintech, my vision has always been to collaborate with banks. This partnership allows us to scale technology much faster globally; we don’t want to compete with banks—we want to collaborate, contribute our technology, and help more companies,” Fidanza stated.
Keo’s Growth and Strategic Partnerships
Keo processed over $500 million in transactions in 2024 and aims to reach $700 million by the end of 2025. In the United States, Keo’s operations have already surpassed $1 trillion in transactions, according to one of its executives.
Case Study: Workeo in Brazil
In Brazil, Keo operates through Workeo, one of its primary platforms, maintaining a strategic alliance with BTG Pactual Bank S.A., Latin America’s largest investment bank. The agreement aims to expand Workeo’s presence in the Brazilian market while enabling the bank to grant credits through the payments system, sharing risk with Keo’s technology.
Ambitious Goals for Brazil
“After the United States, Canada, and Mexico, Brazil is a key market. It’s the largest emerging economy globally. While many fintech companies have focused on small and medium enterprises (SMEs), leaving a gap in the corporate sector, we see an enormous opportunity to transform this market, just like in Mexico,” said the executive.
Key Questions and Answers
- What challenges do large corporations face in international payments? They encounter slow processing times, high costs, and fragmented systems.
- How are fintech companies addressing these challenges? Fintech firms like Keo collaborate with traditional banks to create more efficient and standardized international payment solutions.
- What technologies are enabling this transformation? Blockchain and Artificial Intelligence facilitate collaboration between banks and fintech companies, leading to a more efficient payment infrastructure.
- What are Keo’s growth targets? Keo aims to process $700 million in transactions by the end of 2025 and has already surpassed $1 trillion in transactions in the United States.
- What is Keo’s strategy in Brazil? Keo operates through Workeo, forming a strategic alliance with BTG Pactual Bank S.A. to expand its presence and offer credit solutions in the Brazilian market.
