Imagine a US based company that just started working with freelancers in Mexico, Brazil, and Argentina. They’re excited to tap into this vibrant talent pool until they run into endless headaches trying to pay their salaries. Between slow transfers, sky-high fees, and confusing regulations in each country, sending a simple paycheck becomes a major stepback. But there’s a powerful tool changing the game: stablecoins. As more companies across Latin America embrace these pegged-value coins as a currency, they will transform international payroll; making it faster, cheaper, and more reliable.

Latin America has adopted stablecoins pretty quickly with the need for better, faster payments.By the end of 2024, stablecoin transactions in the region reached $168 billion a 42.5% year-over-year increase that even surpassed growth rates in Europe and North America, according to Chainalysis. Brazil, Mexico, and Argentina are leading this wave of adoption. Remittances have played a major role in this shift: a report by Lumx showed that remittances to Latin America totaled $156 billion, with 30% of U.S.-Mexico transfers using stablecoins reducing transaction costs from 6% to under 1%.

Today the biggest use case for stablecoins in LATAM is cross-border payments. In fact, 71% of people in the region say that’s their main use case, far ahead of the global average of 49%. Latin American institutions are deploying stablecoins to meet urgent, day-to-day needs in the B2B and retail spaces. As well as US based companies are using stablecoins for payouts. As mentioned in a recent report by Bitso, Latin America’s B2B cross-border payments market is growing rapidly with a revenue market range between US$25 billion and US$133 billion (2023 and 2030). This shows that Latin America’s B2B cross-border market, currently valued at US$600 billion in transaction volume, could reach approximately US$1.37 trillion by 2030. 

Bitso alone processed about $8 billion in remittances in 2023, including $4.3 billion between the U.S. and Mexico. This shows just how big of a role the Mexican market plays in adopting stablecoins for everything from remittances to salary payments.

For businesses looking to expand into Latin America, there’s a massive opportunity here especially with the region’s growing talent pool and emerging markets. But what’s holding them back? The reality is, managing international payroll in Latin America can feel like an uphill battle. Between sky-high costs and regulatory headaches, it’s enough to make any business think twice.

Here’s why it’s so tough:

• Each country has its own rules, regulations and tax implications.

• Volatility and fluctuation of currencies can cause employees to receive less.

• Companies need systems that can handle different currencies and mass-automated payments.

• International transfers and payment processing take time and cost a lot.

• Local requirements make it hard to scale smoothly.

• All of this adds up to more work and more chances for mistakes.

Put simply, handling international payroll in Latin America isn’t just a financial challenge, it’s a logistical, legal, and operational puzzle. Without local know-how, companies face constant risks.

The solution

When it comes to paying teams across Latin America, stablecoins are emerging as a real game-changer. These digital assets are helping businesses sidestep the high fees and long delays of traditional cross-border payments. 

Ramps like Capa are making this easier than ever. Capa acts as the bridge between crypto and traditional banking, turning the promise of stablecoins into practical solutions for real-world payroll. By removing the friction of outdated payment systems, Capa helps businesses expand faster and manage their operations more smoothly.

Companies hiring freelancers or establishing payroll structures can leverage Capa’s infrastructure and capital tailored to LATAM markets. We provide a simpler way to send salaries internationally so that employees can receive it in their local currency, ensuring convenient and versatile payment options. Companies can manage payouts across multiple countries without worrying about fluctuating exchange rates or liquidity issues.

This approach is great news for marketplaces, agencies, and payroll providers who need to pay people in different LATAM countries. They can use stablecoins in the main market and then quickly disburse local currency payments straight to bank accounts, no extra steps required. The result? Faster payments, easier FX management, and happier teams.

Here’s what stablecoin payroll means for businesses:

• Cost Efficiency: Cut fees by up to 40%, avoid international wires, and keep more money in your team’s pockets.

• Speed: Payments that normally take days now arrive in minutes, helping cash flow and onboarding.

• Currency Stability: Convert USD-denominated stablecoins to Local currency with optimal FX. 

• Simplicity: No need for local entities or bank accounts.

• Transparency: Blockchain-based payments offer clear tracking for audits and compliance.

• Security: Reduce fraud risk with secure, blockchain-based transfers.

• Scalability: Easily expand across LATAM without customizing each country’s banking systems.

Capa serves as a crucial bridge in cross-border payroll processes for companies operating in Mexico and other Latin American markets. The flow begins with global payroll companies seeking local expertise and partners to help provide their clients with the liquidity and currencies to pay employees and freelancers internationally. These salaries are transferred to Capa, which acts as the intermediary platform and FX conversion layer. Converting the received stablecoins to Mexican pesos ($MXN), enabling the disbursement of local currency payouts. Finally, the converted pesos are delivered directly to employees, freelancers, and contractors in Mexico, eliminating the friction of complex rates or liquidity challenges for businesses and providing seamless payouts for recipients. 

The full workflow extends to companies with international employees and payroll, who often partner with global payroll providers to ensure compliance and global coverage. However these players also look externally for expertise in markets like Mexico. They can rely on Capa’s specialized infrastructure and capital to manage local FX conversion and payout logistics, guaranteeing collaborators receive payments consistently and at competitive rates.

In short, Capa is a ramp built to scale, delivering real-time, low-cost, and a payroll infrastructure beyond borders. Through the platform & API, businesses can send payrolls across LATAM in seconds with stablecoins as currency. On the receiving end, employees instantly receive their salaries in their local currency at the best rate. 

Summarizing…

• Pay contractors, freelancers, and full-time staff across LATAM.

• Cut processing time from days to minutes.

• Eliminate wire fees and FX markups.

• Keep employees and freelancers happy with quicker, fairer payments.

Pioneers in International Payroll

Here’s a snapshot of companies that are setting the example for international payroll. These innovative platforms simplify cross-border transactions, streamline payouts, and ensure freelancers and remote workers in Latin America get paid fairly and on time—no matter where they live.

DolarApp

• Context: Mexican freelancers and remote workers face issues with peso volatility and restrictions on holding US dollars directly.

• Solution: DolarApp lets users open a digital account in USDC, receive payments without extra fees, and spend using a card that converts dollars to pesos at the real exchange rate.

• Impact:

  • Growing presence in Mexico, Argentina, and Colombia.

  • First in Mexico to offer USDC purchases without extra commissions.

  • Attractive for freelancers working with international clients.

Payoneer 

• Context: Global companies struggle with outdated payment systems and fiscal complexities when paying remote teams in Latin America.
  Solution: Payoneer offers a robust mass payment platform with tax compliance features and flexible withdrawal options.

• Impact:

  • Works with platforms like Linio, Hotmart, Workana, and Airbnb for seamless payments.

  • Expanded in Latin America, Africa, and South Asia to serve freelancers and SMEs.

  • Partnered with Skuad for EOR services in Latin America.

Stablecoins and digital assets are a solution to payroll systems across the region. With Capa businesses gain a secure and efficient grip into a payroll infrastructure and unlock the LATAM market.