If you have ever had to make a payment to individuals in Brazil, you might know that this is not an easy country to move money into, and you might want to know the best payment method. The Brazilian Real (BRL) is a restricted currency, meaning it doesn’t leave the shores of Brazil, and it can be difficult to send money into Brazil without using an intermediary. Also, the routes to Brazil are challenging because of the fluctuating currency with BRL. If there are any delays in payment, oftentimes, the FX trade will affect the actual amount that an individual receives. There are also many regulatory, language, and banking barriers to making payments quickly to Brazil. Luckily, the team at Payment Labs, made up of quite a few Brazilian payment experts, has created a solution that makes it easy to make a payment to anyone in Brazil. Making payments to a Brazilian can now be as easy as paying a Bostonian. Should you make lots of payments in Brazil, this may call for a round of caipirinhas, Brazil’s national drink, at a Brazilian restaurant near you! Let’s dive into the details to learn why Payment Labs is best suited for all your payments to those in Brazil.
To set the stage, let’s begin with why Brazil can be a trickier place to pay without using the Payment Labs platform. If you are sending an international wire to Brazil, it is going to cost a decent amount of money for both the sender and the recipient. The conversion of USD to BRL is not a typical exchange pair without high FX rates. Additionally, there are different risk factors involved on the compliance end to fulfill the payment. The risk points are factored into a high FX rate, and the cost of sending an international wire with an intermediary is expensive. Couple this with all the compliance information needed and the recipient’s personal information, and you have to do a lot of work on top of all the different fees to make the payment successful. So, if you’re frequently trying to pay someone in Brazil, redoing all of this work on a per-payment basis is a very time-consuming and expensive process.
The customary action to pay someone in Brazil is to use USD-to-USD wires and then let the recipient bank handle the rest of the payment process. This is usually done via a SWIFT payment, and then the fees and compliance part comes next, as described above. So, for example, having to send payroll payments to Brazil, even if it’s only monthly, will be a costly transaction.
The receiving bank will also request compliance information to fulfill the payment and avoid financing fraud, money laundering, and tax evasion by receiving foreign currency into a Brazilian bank account. The first intermediary bank that touches the money in Brazil will ask for all the compliance information. Then, the recipient’s bank will also ask for the same information or sometimes more information. This process requires a lot of steps and can make paying any of the 214.3 million people in Brazil difficult.
Enter the Payment Labs platform, built to simplify global payments and enable any business to pay anyone worldwide compliantly and efficiently. Payment Labs makes it easy to make payments to those in Brazil because Payment Labs did the legwork to get the routes and relationships needed to send money into Brazil without using an intermediary and to achieve this in a compliant manner. As a bonus, Payment Labs also has great FX rates, so the recipients get more money. Payment Labs also has low-cost, effective pricing, which means that regardless of the size of your payment, it will be a flat price to make the payment.
So, how did Payment Labs create this industry-best solution that makes it so easy to pay someone in Brazil?
Before founding Payment Labs, CEO Han Park was President of Turtle Entertainment America, a subsidiary of ESL Gaming – the world’s largest esports company, having sold for over $1 billion in 2022. The roots of Payment Labs are in paying gamers who won prize payouts after competitions, as this was a challenge Han faced while leading this industry. Han and his team then built the Payment Labs platform to make esports payouts easy and compliant worldwide. As a result, Payment Labs has many esports companies that utilize the platform, and many initial customers had a lot of payments to make to gamers in Brazil. The Brazilian game market is the largest in Latin America and the 10th largest worldwide, so many gamers compete in esports competitions, and the Payment Labs platform needed to quickly and compliantly pay these gamers.
To make all the payments to the winners in Brazil quickly and compliantly, Payment Labs made it a mission to unravel the complex nature of the Brazilian payments space and figure out the best payment method to efficiently make payments from the US or Europe or anywhere outside Brazil into Brazil. Hiring Brazilian developers on the ground in Brazil to reverse engineer some of the payment compliance process and determine what is needed to make the payment successful was one step in the process as was partnering with good banking partners with specific Brazilian routes. Then, the team proactively ensured that the payment would succeed by knowing everything that needed to be done to make quick, easy, and compliant payments. They then created an efficient process with the most optimized route to pay individuals in Brazil. Additionally, Payment Labs employs a payment support team in Brazil to handle any customer questions. Check out the LiquidDogs Case Study for more information on this use case.
These days, the Payment Labs team employs talented Brazilian team members, which other companies might only be able to do as quickly with a nearshore account or a firm in between, such as a staffing agency. If other companies want to hire Brazilians directly and eliminate the intermediary, they can use the Payment Labs platform to make payments, whether it is gamers, athletes, creators, or anyone in between. The Payment Labs platform is the industry best for payments to Brazil, making it easy to make payments with fewer complications, a win for all of the talented people in Brazil who need quick and compliant payments.
Interested in making payments to Brazil an easy process with the industry’s best payment platform to Brazil? Reach out to our team today to get started!