Understand the difference between cross-border payout and local split payment in Brazil

For foreign entities doing business in Brazil, the cross-border payout solution can be an important factor for the operation’s success 

The development of online services is an undeniable reality, and it just keeps growing and growing. With the increasing offer of digital services, especially through apps with ride-hailing drivers, delivery agents, home rental hosts, freelance service providers, influencers, streamers, gamers, among others, cross-border payments with a focus on disbursement is becoming even more strategic and important for businesses, as an opportunity to scale and deliver a high quality experience to payees. A popular format for this is the so-called payout, where the company makes a payment to a non-employee for services rendered. 

However, for foreign companies that do not have local entities in Brazil, the payment process can be a challenge. This payout process is only possible for companies that have a local presence, which is not always the case for businesses based abroad. It is precisely in these cases that a local partner such as BoaCompra is indispensable, as it acts as the local processor of the cross-border payout transaction, eliminating the need to create a national entity for this.

Nowadays, there are disruptive solutions that solve these challenges in a modern and secure way. Thus, it is worth understanding the difference between two popular methods to know the best way to carry out your processes in Brazil.

Local payouts: split payment

Local payouts is when a company (either a local company or a multi-national with local presence) receives funds from a local payment processor for payment that comes from local customers. Thus, the company can draw upon their locally held funds to make payouts to local payees.

iFood, Rappi, Uber, 99 and other such companies use local payouts – split payments in their business models. By “split payment”, we mean a disbursement where a local processor handles the payment process, splitting each payment between the company, platform, or marketplace and the payee (driver, seller, delivery agent, etc.) according to the agreed upon compensation plan.

Cross-border payouts 

Here, the payment is made by an international company to a supplier in Brazil. This process used to be subjected to many challenges such as remittance of capital, currency volatility, tax complexity, and processing delays, which can delay the distribution of payments to local providers. In addition, this type of payment in traditional methods usually brings other problems such as:

  • For traditional payment methods, such as wire transfers, the cost can exceed US$30 per transaction, which is unfeasible, for example, when it comes to streaming, where the average payment amount is US$5
  • Most global payment providers do not pay in local currency, leaving payees susceptible to exchange rate fluctuations and generating uncertainty about the final amount they will receive, in reais
  • Payees are subject to bank processing fees, which are not always clear, and taxes such as IOF
  • This type of payment is usually not made in real time, sometimes taking up to three days to complete. While this may be adequate for a professional freelance designer, for example, who is used to billing and receiving monthly, it can be complicated for a streamer, who wants to receive small amounts several times a week
  • International players with no local entity in Brazil and paying in dollars or euros may find it difficult to serve their recipient, damaging the relationship 


Looking to solve these questions, there are new alternatives with innovative technology and disruptive solutions being offered by companies such as BoaCompra.

Processing locally: BoaCompra Payout Solution

For those who want to take advantage of the domestic market without having to deal with the well-known national bureaucracy or having to deal with the hindrances of traditional cross-border transfers, BoaCompra has an innovative and ideal payout system for these cases. Our solution acts with precision on the main pain points for international sellers, such as:

  • Instant payment in local currency, speeding up receipt and helping you organize payments to suppliers
  • Payment amount reflected in reais, facilitating revenue visibility in local currency
  • Free of banking taxes: your business is free from traditional international bank fees. You will afford only the transaction fee and your local partner will not defray any additional costs
  • Complete visibility of your funds throughout the transaction flow, which improves your management capability and strengthens your financial management
  • Possibility of conversion into a PagBank account for the person receiving the payout, bringing more processing and control tools to your business and increasing financial inclusion, with the ease of opening an account in the country without bureaucracy

The moment is ideal for those seeking to expand business in the country, with security, speed, and tranquility. Talk to our consultants and find out all that BoaCompra can do to expand your sales in Brazil without the need to create a national entity and with speed when it comes to paying and receiving.