Global FinTechs Race Into Brazil as Cumbuca Offers a New Back Door

Cumbuca, a Y Combinator-backed FinTech, is betting that global payment players want into Brazil faster than the licensing process allows.

In a Wednesday (Dec. 3) news release, the company said it has launched a “proxy” service that lets international firms initiate payments in Brazil under Cumbuca’s local authorization — a shortcut as Pix and open finance keep pulling new entrants into the market.

Cumbuca framed Brazil as a proving ground for modern payments, citing the central bank’s regulatory posture, the Pix instant-payments rail and a well-established open finance framework. But it said would-be entrants face more than technical work: beyond licensing, firms must also navigate geopolitical strains, including the threat of U.S. tariffs, that could heighten exposure to sudden regulatory changes.

To speed market entry, many companies work with open finance-as-a-service providers that offer prebuilt infrastructure aligned to central bank standards. Cumbuca argued that approach can create a different dependency, tying customers to a provider’s policies and support queues.

Its alternative is direct connectivity and more control. Cumbuca said it offers direct access to the Brazilian Central Bank and allows clients to build their own infrastructure under its payment-initiation license, aiming to improve operational control and help customers manage and optimize costs.

“Right now, they have two choices: wait years for a license or surrender control to third-party providers. We’re offering a third way,” CEO Daniel Ruhman said.

The startup said it previously obtained a payment initiation service provider (PISP) license for a consumer product, then pivoted after seeing the licensing hurdles and the limits of third-party models. Founders Ruhman, Bruno Cury and Pedro Castilho secured a license in 2022 and have since recruited policy, compliance and open finance specialists. Investors include Lightspeed and Supera Capital, and the company said it has also launched on Product Hunt.

PYMNTS’ recent reporting has tracked Brazil’s rapid shift to account-to-account payments. PYMNTS wrote in November that Pix, now five years old, is still accelerating, and has covered Pix Automático’s debut for recurring payments. PYMNTS has also followed the “plumbing” being built around those rails — from dLocal’s certification to initiate Pix payments within the open finance ecosystem to partnerships expanding merchant access to Pix Automático.