Cumbuca, a company backed by Y Combinator, has launched a service aimed at enabling international businesses to more swiftly integrate into Brazil’s financial system.

Operating within the country’s regulated payment framework, Cumbuca acts as an intermediary, offering a payment initiation license that foreign companies can use without the need for them to apply for their own licenses, which could take years.

Brazil’s financial environment, characterized by the Central Bank’s regulatory stance, the extensive use of Pix, and an established Open Finance system, continues to draw global payment providers and tech companies. However, these firms often encounter challenges such as licensing requirements and broader geopolitical factors, including potential trade measures from the United States that introduce uncertainty for cross-border operations.

To mitigate delays, many organizations seek assistance from Open Finance-as-a-Service providers. These suppliers offer ready-made infrastructure for data sharing and payment initiation but can also impose certain operational constraints due to their reliance on external support functions and internal policies.

Cumbuca’s Regulatory Authorization Model

Cumbuca positions itself as a model that allows companies to maintain greater control over their systems while operating under the firm’s regulatory authorization. The company representatives highlighted how they aim to provide an alternative to lengthy licensing processes or dependency on third-party platforms, enabling clients to build their own infrastructure with Cumbuca managing the regulatory oversight.

Initially, Cumbuca secured a payment initiation service provider license when it operated its consumer-focused product. After navigating through the authorization process and encountering limitations of third-party providers, its leadership redirected the business to act as an intermediary for other organizations seeking market access.

Officials from Cumbuca emphasized that their experience on both the consumer and infrastructure sides influenced this decision, arguing that it supports companies in aligning with regulation while focusing on product development.