Cumbuca launches to help international firms enter Brazilian payments market

Brazil has emerged as a significant player in the fintech sector, with a large young, digitally savvy but underbanked population. Its central bank-run Pix instant payments system has proven hugely popular, while local digital players such as Nubank have won millions of customers.

However, Cumbuca notes that, apart from securing appropriate licenses, international firms looking to enter Brazil must also navigate ongoing global diplomatic strains, such as the threat of US tariffs, which increases the exposure to potentially ruinous regulatory changes.

Some international players are turning to so-called Open Finance-as-a-Service providers, companies offering ready-made infrastructure that allows customers to access, share and use financial data without building it themselves.

However, says Cumbuca, this leaves international businesses reliant on a supplier’s technical support team and at the mercy of individual providers’ policies and processes, which impacts operational effectiveness.

In contrast, it acts as a proxy for Brazil’s regulated payments ecosystem offering direct access to the central bank, enabling financial services firms to build their own infrastructure under its payment initiation license, improving operational control which allows them to better manage and optimise costs.

Daniel Ruhman, CEO, Cumbuca, says: “There is immense opportunity for forward-thinking businesses here in Brazil, but they need to access the market. Right now, they have two choices: wait years for a license or surrender control to third-party providers.

“We’re offering a third way: our customers can build the business they want in Brazil, while we handle license compliance. We’re acting as a bridge between total control of their operations and regulatory peace of mind.”