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SAO PAULO: Latin American corporate card provider Clara has launched cross-border transactions, the company announced on Monday, expecting to move up to US$100 million by the end of the year.
Through the service, clients can now pay bills in major foreign currencies, Clara said in a statement.
The international transfers will first launch in Mexico, where Clara was founded, though the firm plans to later make the service available in Colombia and Brazil, it told Reuters, without giving a timeframe.
The US$100 million expected in cross-border payments through the end of the year is on top of Clara’s domestic transactions in Mexico, which the company told Reuters totalled nearly 8.5 billion Mexican pesos (U$499.58 million) in the first half of the year.
Customers in Mexico will be charged in pesos while the beneficiary will receive payment in their chosen destination currency, the firm said.
The corporate credit provider, which also offers expense management products, said its decision to launch in Mexico was in part to capitalize on the country’s so-called nearshoring boom as US multinationals move operations to the country to bring production closer to customers.
Clients involved in nearshoring requested the service, as they need to acquire services and materials from various parts of the world, requiring payments in different currencies, Clara said.
Earlier this month, Clara announced it was moving its headquarters from Mexico to Brazil, betting on the South American country becoming its largest market by 2024.
Half of the company’s leadership is already based in Brazil, Clara said on Monday.
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