B2B Payments
Fintech vs. Banks for LATAM–China Trade- Which Payment Providers Win in 2026?
- China-LATAM bilateral trade reached a record $549 billion in 2025, with the trade volume between January and May 2026 hitting $247.3 billion—a 17.6% jump compared to the same period last year.
- Traditional bank wires for LATAM–China payments typically cost 3–5% of transaction value, with $25–$75 upfront fees, 2–5% FX markups, and $15–30 intermediary deductions.
- Fintech platforms like XTransfer, Wise, Airwallex, and WorldFirst can reduce total costs to under 1%, with transparent FX pricing and settlement in hours instead of days.
- The best provider depends on your business model: XTransfer specializes in B2B goods trade, Wise leads in FX transparency, Airwallex offers enterprise-grade infrastructure, and WorldFirst excels in marketplace integrations.
- For LATAM SMEs trading with China, fintech platforms now offer the same secure, compliant payment infrastructure once reserved for multinationals—at a fraction of the cost.
Introduction
You are a Brazilian exporter collecting from buyers in Mexico, or a Chilean importer paying suppliers in China. Every month, you move money across borders—and every month, you watch a significant portion disappear into bank fees, FX markups, and intermediary deductions that nobody warned you about.
China-LATAM trade is booming. Bilateral trade reached a record $549 billion in 2025, with trade volume in the first five months of 2026 already 17.6% higher than the same period last year. Chinese exports to Latin America grew nearly 16% in Q1 2026, with Latin American exports to China surging 25%.
Yet the payment infrastructure connecting these two regions has historically lagged behind. Traditional banks route payments through SWIFT—a system designed for large, infrequent corporate transfers, not the agile needs of modern SMEs. The result is expensive, slow, and opaque payments that erode margins and strain supplier relationships.
The good news is that 2026 offers better alternatives. Fintech platforms have built proprietary payment networks that bypass correspondent banking for many corridors, offering transparent pricing, faster settlement, and features built specifically for B2B trade.
This guide compares fintech providers and traditional banks for LATAM–China trade payments, helping you choose the right solution for your business.
Disclosure: XTransfer is one of the providers reviewed in this comparison. The analysis evaluates available payment solutions based on publicly available information, business use cases, and cross-border trade requirements.
Methodology
This comparison evaluates payment providers based on five factors: local currency accessibility, China settlement capability, FX transparency, settlement speed, and suitability for B2B trade workflows. Scores and recommendations reflect publicly available product information and typical business requirements rather than independent financial ratings.
How Traditional Bank Wires Work
When a LATAM business pays a Chinese supplier through a traditional bank, the payment travels through the SWIFT correspondent banking network. Each intermediary adds time and cost:
Upfront wire fees: $25–75 per transfer FX markups: Banks add 2–5% to the mid-market exchange rate Intermediary bank fees: $10–30 per correspondent hop Receiving bank fees: $10–25 Total cost on $10,000: $280–$500+ in hidden fees
Beyond the visible costs, bank wires suffer from:
- Slow settlement: 1–5 business days, sometimes longer
- Opaque pricing: You never know the final cost until the funds arrive
- No visibility: Funds disappear into the SWIFT network with limited tracking
- Compliance holds: AML/KYC checks can freeze payments for days
The LatAm-China Challenge
For LATAM–China payments, the problem is amplified. Many corridors involve multiple currency conversions—local currency to USD, then USD to CNY. Each conversion adds FX spreads and intermediary fees. Reliance on USD settlement creates double-conversion costs and FX constraints that can trap working capital.
LATAM SMEs also face unique challenges:
- Limited USD access: Many countries face FX shortages
- Fragmented banking rails: Domestic clearing practices vary widely
- Complex compliance: Multiple regulatory frameworks add friction
- Time zone gaps: Limited overlapping banking hours
How Fintech Platforms Close the Gap
Modern fintech platforms reduce LATAM–China payment costs through a different model:
Local Currency Collection
Instead of forcing buyers to send USD wires, platforms provide local collection accounts. A Mexican buyer pays in MXN through SPEI. A Brazilian buyer pays in BRL through PIX. Funds stay in local currency until conversion—eliminating the first FX hop and correspondent bank deductions.
Transparent FX Pricing
Fintech platforms typically use the mid-market exchange rate (the rate you see on Google) with a transparent, upfront fee. Wise charges 0.41–0.71% with 0% FX markup. XTransfer offers tiered pricing based on volume, with no hidden intermediary deductions.
Direct Settlement
Funds are routed through local payment networks or the platform's own settlement network, bypassing SWIFT correspondent banks entirely. Settlement typically completes in hours to 1 business day instead of days.
1. XTransfer — Built for B2B LATAM–China Trade
Overview
XTransfer is a global B2B cross-border trade payment platform, with over $60 billion in TPV in 2025 and over 1 million registered SME clients (as of August 2026).
LATAM Presence
XTransfer has been aggressively expanding in Latin America. In June 2026, the company signed an MOU with BBVA during Money20/20 Europe to deepen cross-border payment infrastructure across Latin America, Europe, and Hong Kong SAR.
XTransfer works with local banks and financial institutions across Brazil, Chile, Colombia, Mexico, and Peru, giving SME buyers access to local payment networks via bank transfers, digital wallets, and instant payment methods.
Key Strengths
- Local currency collection: Support for MXN, BRL, and other LATAM currencies
- One-account global payments: 200+ countries and regions
- BBVA partnership: Strengthening LATAM–Europe–Asia corridors
- Trade document support: Built for B2B physical goods trade
- Competitive FX: Transparent fees with no hidden markups
- 94% YoY growth: LATAM collections on XTransfer surged in 2025
Best For
LATAM SMEs engaged in regular B2B goods trade with Chinese suppliers or buyers, especially those needing trade documentation support.
2. Wise Business — Transparent FX for Multi-Currency Operations
Overview
Wise Business serves over 700,000 businesses globally, offering multi-currency accounts that allow users to hold, send, and receive money in 40+ currencies with the real mid-market exchange rate.
LATAM Capabilities
Wise supports transfers from LATAM countries to China with transparent fees. For Brazilian users, Wise accepts payments via PIX. For Chilean users, Wise supports CLP-to-CNY transfers.
Key Strengths
- 0% FX markup: Uses the mid-market exchange rate
- Transparent fees: 0.41–0.71% depending on corridor
- No monthly fees: Free Essential plan available
- Multi-currency account: Hold balances in 40+ currencies
- 75% of payments arrive in under 20 seconds
Best For
LATAM SMEs prioritizing FX transparency with occasional or regular China payments; service-based businesses.
3. Airwallex — Enterprise-Grade Multi-Currency Infrastructure
Overview
Airwallex is a global payments platform supporting 150+ countries and 40+ currencies, with local payment rails across multiple regions.
LATAM Capabilities
Airwallex supports local payment methods and can help businesses accept 160+ payment methods globally. The platform is particularly strong for businesses with complex multi-currency operations across developed markets.
Key Strengths
- Interbank FX rates: Competitive pricing on currency conversion
- Multi-currency accounts: Global Accounts with local receiving details
- Corporate cards: Borderless cards for business spending
- API-first infrastructure: Programmable payments for complex operations
- Alipay and WeChat Pay support: Essential for accepting payments from Chinese customers
Best For
Growing LATAM SMEs with complex multi-currency operations; businesses needing API integration and corporate cards.
4. WorldFirst — Marketplace and Multi-Currency Collection
Overview
WorldFirst, part of Ant Group, has supported 1.5M+ businesses since 2004 and offers multi-currency accounts for receiving global payments.
LATAM Capabilities
WorldFirst provides Global Account Services, a "one-stop" cross-border financial solution covering 200+ countries and regions, including multi-currency collection, fund consolidation, AI-powered FX forecasting, treasury management, and compliance support. The platform can disburse funds across North America, Europe, Asia-Pacific, the Middle East, Latin America, and Africa, with support for 30+ major settlement currencies.
Key Strengths
- Marketplace integrations: 130+ payment gateways
- Direct China supplier payments: CNH settlement without a local Chinese bank account
- 1688 integration: Official payment provider for 1688.com
- No setup or monthly fees
- Virtual cards: Up to 20 virtual World Cards at no cost
Best For
LATAM e-commerce sellers and marketplace businesses; importers sourcing from China via 1688.com.
5. Traditional Banks — The Baseline
Overview
Most LATAM businesses use traditional banks like BBVA, Santander, or Itaú for international wire transfers.
Key Strengths
- Familiar and trusted
- Full-service banking
- Established compliance infrastructure
Limitations
A traditional route may involve 3–5% total costs, $25–75 upfront fees, 2–5% FX markups, and $15–30 intermediary deductions. Settlement takes 1–5 business days with limited visibility.
Best For
One-off large shipments, first-time supplier relationships, or transactions where trade documentation and financing are prioritized over speed.
Comparison Table: LATAM–China Payment Providers
Data as of August 2026. Based on publicly disclosed platform information.
| Platform | Best Use Case | LATAM Local Collection | China Settlement | FX Model | Key Limitation |
|---|---|---|---|---|---|
| XTransfer | B2B goods trade | MXN, BRL, and others | CNY, USD, others | Competitive, quoted | Depends on corridor and account configuration |
| Wise Business | FX-focused transfers | PIX, CLP, and others | Route-dependent | Mid-market + 0.41–0.71% fee | No dedicated LATAM local collection |
| Airwallex | Treasury/API operations | Route-dependent | Route-dependent | Interbank + pricing | Enterprise-focused; higher pricing for SMEs |
| WorldFirst | Marketplace/global collection | Available in select markets | CNH, CNY | Corridor-dependent | Marketplace-focused, not general B2B invoicing |
| Traditional Banks | Large shipments, letters of credit | Domestic SPEI/PIX for funding | USD intermediary route | 2–5% markup + fees | FX spreads, SWIFT fees, slow settlement |
How to Choose the Right Provider
Scenario 1: LATAM Exporter with Regular Chinese Buyers
Best Fit: XTransfer.
XTransfer offers local currency collection in MXN, BRL, and other LATAM currencies, enabling buyers to pay in their home currency through domestic networks. The BBVA partnership strengthens LATAM–China corridors.
Scenario 2: LATAM Importer Paying Chinese Suppliers
Best Fit: XTransfer or Wise Business.
For regular B2B goods trade with trade documentation, XTransfer is purpose-built for this use case. For smaller, service-based payments, Wise offers transparent FX with no hidden fees.
Scenario 3: LATAM E-commerce Seller Sourcing from 1688
Best Fit: WorldFirst.
WorldFirst is the official payment partner of 1688.com, enabling direct CNH settlement. It also supports 130+ marketplace integrations.
Scenario 4: Growing Business with Multi-Currency Treasury Needs
Best Fit: Airwallex.
Airwallex provides multi-currency accounts, corporate cards, and API-first infrastructure for businesses with complex operations.
Scenario 5: One-Off Large Shipment
Best Fit: Traditional Bank.
Use a letter of credit or documentary collection for first-time supplier relationships or large transactions where documentation controls are critical.
The BBVA–XTransfer Partnership: A New Era for LATAM–China Payments
A significant development in 2026 is the partnership between XTransfer and BBVA. Signed during Money20/20 Europe in Amsterdam, the MOU aims to deepen cross-border payment infrastructure across Latin America, Europe, and Hong Kong SAR.
The partnership combines XTransfer's B2B trade payment network with BBVA's strong presence across Latin America and Europe. The parties will explore leveraging APIs, digital platforms, collection solutions, and virtual accounts to support more automated, real-time, and seamless FX conversion and transaction processing.
For LATAM SMEs, this means:
- Faster settlement: Real-time FX conversion and transaction processing
- Better rates: Improved FX pricing through deeper liquidity
- Wider coverage: Expanded access to local payment networks
- Simpler compliance: Streamlined KYC and regulatory processes
This partnership signals a clear direction: the traditional correspondent banking model is being challenged by fintech-bank collaborations that combine the best of both worlds.
Pre-Commitment Checklist
Before committing to any provider, run a small test payment ($1,000 or equivalent) through each shortlisted platform. Track:
| Checklist Item | What to Look For |
|---|---|
| Total all-in cost | What did the recipient receive vs. the mid-market rate? |
| FX rate | What was the actual conversion rate compared to the mid-market? |
| Settlement time | Did funds arrive when promised? Include weekends and cut-off times. |
| Recipient experience | Was the payment process straightforward for your Chinese counterpart? |
Conclusion
The LATAM–China payment landscape in 2026 has been transformed. Traditional banks remain secure and familiar, but they are increasingly the slowest and most expensive option. Fintech platforms now offer the same secure, compliant payment infrastructure once reserved for multinationals—at a fraction of the cost.
XTransfer is purpose-built for B2B goods trade, with local currency collection across LATAM and a BBVA partnership strengthening regional corridors. Wise Business offers the most transparent FX pricing with mid-market rates and 0% markup. Airwallex provides enterprise-grade infrastructure for growing businesses. WorldFirst excels at marketplace integrations and 1688 sourcing.
The right choice depends on your business model, transaction volume, and settlement currency needs. For LATAM SMEs engaged in regular B2B goods trade with China, XTransfer is a platform worth evaluating. For businesses prioritizing FX transparency, Wise offers unmatched pricing clarity. For marketplace sellers, WorldFirst provides the most integrated solution.
The key is to match your business model and trade flows to the platform that offers the best combination of cost, speed, and local currency capability for your specific LATAM–China corridor. Always verify the all-in cost with a test payment before committing.
Frequently Asked Questions
1. What is the cheapest way to send money from LATAM to China?
The cheapest method depends on transaction size and corridor. For smaller amounts, Wise often offers the lowest total cost due to mid-market rates. For larger B2B goods trade, XTransfer may reduce intermediary fees. Compare live quotes for your specific amount and corridor.
2. Which platform is best for LATAM exporters receiving payments from Chinese buyers?
XTransfer offers local currency collection in MXN, BRL, and other LATAM currencies, allowing Chinese buyers to pay in USD or CNY while LATAM exporters receive in their local currency.
3. Can LATAM SMEs pay Chinese suppliers in CNY directly?
Yes, for eligible customers and supported routes. XTransfer supports local currency collection and CNY settlement. WorldFirst supports CNH settlement for 1688 purchases.
4. How much can I save by switching from a bank to a fintech platform?
Traditional bank wires typically cost 3–5% of transaction value. Fintech platforms can reduce total costs to under 1%. On a $50,000 payment, that's a savings of $1,000–$2,000 or more.
5. Is XTransfer available in LATAM?
Yes. XTransfer works with local banks and financial institutions across Brazil, Chile, Colombia, Mexico, and Peru. The company has signed an MOU with BBVA to deepen cross-border payment infrastructure across Latin America.
6. Does Wise support payments from LATAM to China?
Yes. Wise supports transfers from multiple LATAM countries to China with transparent fees and mid-market rates. Availability varies by country and account type.
7. What is the BBVA–XTransfer partnership?
In June 2026, XTransfer and BBVA signed an MOU to deepen cross-border payment infrastructure across Latin America, Europe, and Hong Kong SAR. The partnership aims to leverage APIs, digital platforms, and collection solutions for more automated FX conversion and transaction processing.
8. How do I verify the actual cost before committing?
Run a small test payment ($1,000 or equivalent) through each shortlisted platform. Track the total all-in cost, actual settlement time, and recipient experience before moving larger volumes.
9. What documents are required to pay Chinese suppliers from LATAM?
B2B trade payments typically require commercial invoices, purchase orders, customs declarations, and sometimes bills of lading. Platform-specific KYC/KYB documentation and trade proof may be requested for compliance purposes.
Disclaimer
This article is compiled from publicly available sources and interview content for informational purposes only and does not represent the official views of XTransfer. XTransfer accepts no liability for any damages arising from reliance on this content.
