Embedded Finance in LATAM: Why APIs are the new financial infrastructure
VelaFi has developed its Payments API in response to the evolving needs of Latin American businesses.
Jay
Jul 22, 2025
As companies expand internationally, managing payments, treasury, and compliance in real-time is no longer optional—it’s a business imperative. Whether operating merchant networks, digital platforms, or business services, companies today don’t just need accounts and banks—they need infrastructure. One that is programmable, flexible, and ready for complexity.
Nowhere is this more evident than in Latin America, a region defined by its economic potential but also by deeply rooted structural challenges in its financial system. Companies operating across multiple countries face a fragmented landscape, with disparate regulatory frameworks, manual banking processes, and heavy reliance on cash in some economies. Even in urban, digital contexts, financial management remains complex, costly, and slow.
In this environment, traditional systems no longer suffice. Operational inefficiency not only hinders innovation, but it also increases costs, raises risks, and reduces competitiveness. In contrast, a game-changing alternative is emerging: financial APIs.
These interfaces allow companies to integrate financial services directly into their own systems—from local currency collections and stablecoin conversions to automated international payments, real-time accounting reconciliation, and embedded compliance.
In other words, APIs turn finance into code. They’re not just tech tools—they are the new rails on which modern financial infrastructure is being built.
Did You Know?
A measurable and expanding infrastructure
The adoption of financial APIs in Latin America is no longer a projection for the future, it's a measurable and rapidly expanding reality. More and more companies, tech platforms, and merchants across the region are using them as a foundation to build more agile, efficient, and secure financial operations.
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Brazil leads with over 4.8 billion monthly API calls, driven by growing integration between financial institutions, fintechs, and consumer and business platforms.
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Over 2,400 active fintechs in the region offer services such as payments, user onboarding, identity verification, alternative credit scoring, and accounting reconciliation through reusable APIs.
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Instant payment infrastructures based on APIs—such as Brazil’s PIX—have proven that digital collection and payment solutions can scale to massive volumes in short timeframes.
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In markets like Mexico, Colombia, Chile, and Peru, banks, fintechs, and digital platforms are incorporating APIs to integrate financial services, facilitate remittances, automate user validation, and optimize operational accounting.
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According to Juniper Research, API call volumes in Latin America will grow by 1,270% between 2023 and 2027, fueling new business models in payments, lending, insurance, payroll automation, and treasury management.
These developments signal that the future of financial services in Latin America won’t be built on traditional banking infrastructure but on programmable, open, and flexible platforms—where APIs act as the invisible engine connecting all economic actors.
Programmable infrastructure for Businesses: VelaFi's Payments API
In an environment where speed, flexibility, and financial control define competitiveness, VelaFi has developed its Payments API in response to the evolving needs of Latin American businesses.
More than just a tech connector, VelaFi’s API is a piece of programmable infrastructure that enables any company—regardless of size or industry—to manage its financial operations dynamically, securely, and at scale.
VelaFi’s Payments API is designed to integrate natively into platforms, ERPs, treasury systems, or custom applications, allowing companies to embed advanced financial capabilities without having to build their own banking infrastructure.
Key features include:
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Local currency collection: Businesses can receive payments in local currencies such as Argentine pesos or Mexican pesos, preserving the user experience and facilitating regional expansion.
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Automatic conversion to stablecoins or strong currencies: Funds can be converted in real-time to assets like USDT, preserving liquidity value against currency volatility or enabling global operations.
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Multi-currency account management: The API supports parallel balances in different currencies, providing real-time visibility and aiding risk diversification strategies.
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Mass payment execution: Businesses can schedule automated payments to suppliers, employees, or partners, in either local currency or stablecoins—streamlining accounts payable processes.
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International transfer automation: Leveraging blockchain and stablecoin-based infrastructure, companies can move value across borders faster, more efficiently, and at lower cost than traditional banking methods.
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Automated accounting reconciliation: Each transaction is precisely recorded with full traceability, enabling instant reconciliation between operational flows and accounting systems—enhancing compliance and audit readiness.
Regional Reach and Ongoing Expansion
The functional reach of VelaFi’s Payments API varies by country, depending on local regulatory frameworks and available solutions.
Currently, the API offers active coverage in several strategic Latin American markets, and the VelaFi team is continuously working to expand its capabilities across the region, aiming to build robust, programmable financial infrastructure accessible to businesses in every LATAM country.
Strategic Advantages of Integrating VelaFi’s API
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Operational flexibility: Companies can quickly adapt to different jurisdictions, currencies, and shifting scenarios.
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Cost optimization: Efficiency in conversions, transfers, and cross-border payments helps reduce structural financial costs.
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Comprehensive financial control: Full visibility and traceability of fund flows enable more secure and precise operations.
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Programmable scalability: New financial services can be integrated directly into business operations as the company grows or enters new markets.
With public documentation available at https://docs.velafi.com/ and a specialized technical support team, VelaFi’s Payments API stands out as a key enabler for building modern, resilient, and adaptable financial operations in Latin America.
Success Story: How a retail network in Argentina modernized its Treasury with VelaFi’s Payments API
A concrete example of the potential of VelaFi’s Payments API is a digital retail network in Argentina—one of the region’s most complex financial environments. Prior to integrating programmable solutions, this company faced the typical challenges of a high-inflation economy, strict currency controls, and restrictions on international fund mobility.
These conditions created three major bottlenecks:
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Inefficient management of local currency revenues, with accelerated value loss due to inflation.
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Constant exposure to exchange rate risk, complicating financial planning.
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Operational friction in making international payments, impacting supply chains and business alliances.
The integration of VelaFi’s Payments API transformed their financial operations:
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Digital and centralized ARS collection from affiliate stores.
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Automatic fund accreditation into a payments account controlled via API, with real-time visibility.
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Scheduled conversion to stablecoins (e.g., USDT) to hedge against devaluation and secure international payment capabilities.
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Full automation of payments to suppliers and partners—both in local currency and crypto—eliminating manual processes, delays, and errors.
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Flexible ARS withdrawals without disrupting reserve strategies or business continuity.
The impact was immediate and profound:
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Significant cost reduction in conversions and transfers.
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Elimination of reconciliation and payment delays.
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Real-time, full control over financial flows.
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Greater resilience to monetary market shocks.
This case demonstrates that in volatile economies like Argentina, programmable treasury via APIs is not only viable—it’s essential for competition, scaling, and sustainability. VelaFi provided not only the technology but also the operational model to turn a vulnerable operation into a robust, adaptable platform ready for growth.
Challenges in implementing financial APIs in LATAM
The adoption of financial APIs in Latin America is accelerating rapidly, but implementation faces real hurdles companies cannot ignore:
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Outdated internal systems: Many organizations still run on legacy architectures unfit for efficient API integration. This requires investment in tech modernization, database migration, and workflow redesign.
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Lack of regional standardization: Each country—and often each provider—has unique protocols, integration rules, and security requirements. This adds complexity and costs for companies operating regionally, requiring customized adaptations.
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Cybersecurity risks: Exposure via APIs demands a strong focus on access control, data encryption, regular audits, and regulatory compliance. It’s not just about integrating APIs—it’s about protecting them as critical assets.
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Specialized talent shortage: API integration, monitoring, and scaling require technical expertise in software architecture, microservices, version control, and security frameworks. The scarcity of such talent in the region adds another challenge.
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Significant initial investment: While long-term financial and operational benefits are strong, companies must first navigate a stage of integration investment, training, and internal process redesign to fully capitalize on the API model.
Overcoming these challenges isn’t about quick fixes—it requires deep cultural and organizational change: strategic vision, commitment to digital transformation, careful partner selection, and a strong bet on building flexible, secure, and resilient infrastructure.
In the new financial paradigm, failing to integrate properly will cost more than integrating.
Looking Ahead: The future of financial infrastructure in the region
The traditional financial infrastructure in Latin America—built on manual processes, closed systems, and intermediary reliance—no longer meets the demands of modern commerce and finance.
Global technological acceleration waits for no one: those who don’t evolve will fall irreversibly behind.
Today, financial APIs are not a tactical option—they are a strategic decision for companies looking to compete on equal footing in both local and international markets.
Integrating programmable infrastructure isn’t just about automating processes—it’s about building an operational model that can adapt in real time to regulatory changes, currency fluctuations, tech innovations, and shifting user demands.
In the coming years:
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Companies adopting programmable infrastructure will dominate dynamic markets, build more efficient embedded finance services, and expand quickly into new geographies and verticals.
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Those that don’t will face rising operational costs, lost competitiveness, and declining relevance in the region’s financial and commercial ecosystem.
Transformation is no longer optional.
Latin America’s financial infrastructure of the future won’t be built with paperwork, offices, or bureaucracy.
And in that new architecture, APIs won’t just be invisible—they’ll be the foundation for economic success.