The Ultimate Guide to Banking Options That Work in Brazil for Mid Market Companies

When your London-based fintech is ready to hire its first Brazilian engineer, or your Manchester SaaS company needs to pay a team of 20 in São Paulo, the banking landscape in Brazil can feel like navigating a maze blindfolded. You're not alone in wondering whether you need a local bank account, how Pix actually works for payroll, or if your UK corporate account can handle Brazilian payments without compliance headaches.

Brazil represents one of Latin America's most sophisticated yet complex banking environments. With over 200 million people, a thriving tech sector, and strict labour laws, getting payments right from day one can mean the difference between seamless scaling and expensive compliance mistakes. This guide walks you through every banking option that works in Brazil, from simple international transfers to full local banking infrastructure, so you can make informed decisions as your team grows.

Key Takeaways For Banking Options In Brazil

Here's what European mid market companies need to know about banking in Brazil:

• Start simple, evolve strategically - A local bank account in Brazil isn't always required initially; international transfers often work for early hires

• Employment model drives payment choices - Whether you use contractors, EOR, or own entities determines your banking options more than specific tools

• Pix and Boleto matter, but not immediately - These local payment methods can be accessed later through partners rather than requiring immediate local banking

• Compliance is strict - Payment choices carry significant tax and misclassification implications under Brazilian labour law

• European companies can often start from home - UK and EU corporate accounts can fund Brazilian payments through proper providers initially

• Scale triggers local banking needs - Around 50+ employees, local bank accounts typically become more efficient than cross-border payments

• Strategic guidance prevents expensive mistakes - Employment model selection and banking timing decisions benefit from expert advisory rather than vendor sales pitches

Banking Options In Brazil For European Mid Market Companies

For European mid market companies funding payments in Brazil for the first time, these are the practical routes before and after opening a bank account in Brazil.

Option 1: International bank transfers from European corporate account

Fund salaries, invoices, and reimbursements via a provider that converts EUR or GBP to Brazilian Real (BRL). Your UK or German corporate account remains the funding source, with conversion happening through your bank or a specialist provider.

Option 2: Global payroll or payment provider

You fund in EUR or GBP; the provider handles all payments in Brazil to employees and vendors. This approach often includes compliance support and local tax handling.

Option 3: Employer of record (EOR)

The EOR uses its own local banking infrastructure in Brazil. You fund from abroad, and they handle payroll, taxes, and compliance. This option suits companies wanting speed and comprehensive compliance coverage.

Option 4: Open a Brazilian corporate bank account

Once a Brazilian entity exists, you can establish direct banking relationships. This provides more control but comes with increased compliance obligations and suits companies with a committed local presence.

Most new entrants start with cross-border EUR or GBP payments converted to BRL by a bank or provider, then move to local banking as scale or regulatory requirements grow. Your Brazilian employees will use local accounts at major banks like Banco do Brasil, Itaú, Bradesco, or Santander, so ensure your chosen route reaches these reliably.

The key is matching your banking approach to your employment strategy rather than rushing into complex local banking infrastructure before it's needed.

Core Payment Methods In Brazil For Salaries And Invoices

Payment methods in Brazil include bank transfers, Pix, Boleto Bancário, cards, and digital wallets, though most salary payments ultimately settle into standard Brazilian bank accounts.

Local bank transfers (TED/DOC)

These are standard account-to-account transfers requiring employee bank details and tax ID numbers. They form the backbone of payroll and invoice payments in Brazil.

Pix

Brazil's Central Bank real-time transfer system using keys like phone numbers, email addresses, or tax IDs, now used by 182 million individuals and 19 million businesses as of early 2025. Increasingly used for reimbursements and some domestic salary payments.

Boleto Bancário

Payment slips primarily for bills and ecommerce transactions. Occasionally used for contractor or vendor payments but not typical for regular salaries.

Cards

Useful for travel and entertainment expenses and some vendor payments, but not a primary payroll mechanism.

Digital wallets and Brazil online banking apps

Individual employees receive Pix and transfers through banking apps, but employers typically interact at the bank-transfer level rather than directly with consumer apps.

Foreign employers typically fund a Brazilian partner or EOR who executes these local payment methods rather than initiating them directly from abroad. This approach provides access to local payment rails while maintaining compliance with Brazilian banking regulations.

Understanding these methods helps you evaluate which banking setup can support your specific payment needs as your Brazilian operations grow.

How Pix Works And When It Suits Mid Market Companies

Pix is a real-time payment system operated by Brazil's Central Bank that enables instant transfers between Brazilian accounts using simple keys like phone numbers, email addresses, or tax identification numbers.

For mid market employers, Pix represents both an opportunity and a constraint. The system is widely adopted for peer-to-peer payments, small merchant transactions, and increasingly for business payments due to its speed and convenience, with Pix accounting for 47% of all non-cash payment transactions in Brazil as of 2024.

However, only Brazilian financial institutions can connect directly to Pix, meaning UK or EU companies cannot send Pix payments from their home accounts. Access requires a Brazilian bank account, payment partner, EOR, or payroll provider that supports Pix functionality.

When Pix access makes sense:

• You have 50+ staff in Brazil requiring frequent expense reimbursements

• Multiple contractors or vendors specifically request Pix payments

• Local operations require immediate payment capabilities for business needs

When standard bank transfers likely suffice:

• You have only a few Brazilian hires

• An EOR handles all payroll administration

• Reimbursements and local payments are low volume

For contractor payments via Pix, ensure proper classification and tax compliance, as the payment method doesn't change employment law requirements. Salary payments via Pix must maintain the same traceability and compliance standards as traditional bank transfers.

The decision often comes down to operational convenience versus setup complexity. Many mid market companies find that standard local transfers through an EOR or payroll provider meet their needs without requiring immediate Pix access.

Using International Credit Cards Debit Cards And ATMs In Brazil

Brazil credit card acceptance is widespread in major cities, though smaller merchants may prefer cash or Pix payments. Don't rely solely on international cards for business operations.

For corporate travel and expenses, international cards generally work well. Charges typically settle in BRL with your card issuer handling currency conversion at their exchange rate, which affects expense reporting and budgeting.

International debit cards often function at Brazilian ATMs for cash withdrawals, though fees and withdrawal limits apply. Establish clear expense policies for team members traveling to Brazil.

For permanent Brazilian staff:

Consider whether to issue corporate cards or reimburse expenses through payroll into local bank accounts. Local norms often favour reimbursement through salary rather than corporate card programs.

Digital wallets may tokenize international cards but tend to focus on personal spending rather than business expense management.

Relying on foreign cards for ongoing operating costs can increase foreign exchange costs and reduce financial visibility as headcount grows beyond 50 employees. At scale, local banking arrangements typically provide better cost control and operational efficiency.

The key is balancing short-term convenience for occasional use against building robust local payment infrastructure for sustained operations.

Cash In Brazil And When Companies Still Need It

Pix and card payments dominate Brazilian commerce, with Pix forecast to capture 44% of the online payment market by end of 2025, but cash in Brazil still appears in specific business contexts, particularly outside major metropolitan areas.

When companies may need cash:

• Remote business travel where digital payment acceptance is limited

• Small petty cash requirements for local offices with proper controls

• Emergency contingencies when payment terminals or networks fail

When to avoid cash:

• Payroll and recurring contractor payments, as cash is difficult to document for audit purposes and may not meet labour law proof-of-payment requirements

• Any process requiring compliance traceability, where bank transfers or Pix through proper partners provide necessary documentation

Most compliance-conscious companies design expense processes to minimize employee cash handling for both safety and audit trail reasons. Brazilian labour law expects documented payment methods for employment relationships, making cash unsuitable for regular payroll.

For operational expenses, establish clear policies around cash use, including approval processes, receipt requirements, and regular reconciliation. This approach maintains compliance while providing flexibility for legitimate business needs.

The goal is reducing cash dependency while acknowledging that some business situations may still require it as a backup option.

When Mid Market Companies Need A Local Bank Account In Brazil

Opening a bank account in Brazil typically requires a Brazilian legal entity and represents a significant strategic commitment rather than a simple operational step.

Triggers suggesting local banking makes sense:

• Brazil becomes a core operational hub with growing local leadership

• Direct payment of local taxes, social security, and regulatory requirements

• Need for improved control over payment timing, local transfers, and treasury visibility

• Regulatory requirements in sectors like financial services or healthcare demanding local banking relationships

Early-stage alternatives often work better:

Cross-border payments or EOR banking frequently suffice for initial hires or contractor relationships, avoiding premature complexity.

Weighing the trade-offs:

Local banking provides operational control and better integration with Brazilian business practices, but brings compliance responsibilities, anti-money laundering obligations, and ongoing bank relationship management.

A phased approach often works well: start with contractors, move to EOR payroll as headcount grows, then consider entity establishment and local banking once you have dedicated local leadership and strategic commitment to the market.

Decision framework:

You probably don't need local banking yet if Brazil remains exploratory, headcount is minimal, or an EOR adequately covers payroll and compliance needs.

Consider local banking seriously when Brazil becomes strategically important, multiple business functions operate locally, or sector regulations demand direct banking relationships.

The timing decision can significantly impact both costs and operational complexity, making strategic guidance valuable before committing to local banking infrastructure.

Banking And Payment Options For Companies With 50 Plus Employees In Brazil

At approximately 50+ employees in Brazil, payroll and cash flow become material enough that ad hoc payment methods typically start breaking down.

Operational shifts at this scale:

• Standardized monthly payroll cycles with comprehensive benefits administration

• Greater need for audit trails, payment forecasting, and financial governance

• Increased scrutiny from Brazilian authorities on employment classification and tax compliance

Banking structures that often work:

Consolidate staff under a single EOR or local payroll provider to reduce vendor fragmentation and improve operational consistency. Consider entity establishment and local bank accounts when Brazil represents a core operating hub rather than an experimental market.

Standardizing salaries in BRL paid into local bank accounts typically improves employee experience and simplifies compliance compared to mixed-currency arrangements.

Risks of maintaining starter setups too long:

Payment errors, reconciliation gaps, higher foreign exchange friction, and increased compliance exposure often emerge as volume grows.

European examples in practice:

A French fintech with 50 support staff in Brazil moved from individual contractor payments to consolidated EOR payroll, reducing administrative overhead by 60%. A UK healthtech company with 70 engineers in São Paulo established a local entity after 18 months of EOR operations to improve operational control.

The transition timing depends on your strategic commitment to Brazil, regulatory requirements in your sector, and tolerance for operational complexity versus control.

How EOR Contractors And Owned Entities Affect Payments In Brazil

Your employment model choice directly determines banking options and compliance obligations in Brazil.

Contractors (self-employed individuals):

Invoice your company directly. Can be paid from abroad in EUR or GBP via international transfer or payment partner. However, misclassification risk exists if contractors function as employees. Don't let banking convenience drive employment classification decisions.

Employer of record (EOR):

Third-party becomes the legal employer. EOR's Brazilian bank accounts handle salaries, taxes, and social security. You fund the EOR cross-border, simplifying banking requirements before establishing local entities.

Owned entity:

Your Brazilian company manages local bank accounts, payroll, taxes, and vendor relationships. Provides maximum control but requires full compliance responsibility and local banking infrastructure.

Practical considerations:

Control, cost visibility, and compliance risk vary significantly by model. Plan transitions deliberately rather than reacting to immediate pressures.

Mixed models are common in practice. You might have core staff on EOR, genuine freelancers as contractors, and an early-stage entity for regulated activities. Coordinate banking approaches to avoid operational fragmentation.

The key is sequencing these models based on business strategy and compliance requirements rather than vendor recommendations or short-term cost considerations.

Each model change affects banking requirements, so plan transitions with sufficient lead time to avoid payment disruptions or compliance gaps.

Compliance Considerations For Paying Employees And Contractors In Brazil

Brazil's protective labour laws and active tax authorities mean payment methods, currency choices, and account structures affect legal risk and employee rights.

For employees:

Mandatory benefits, social security contributions, and payroll filings often require EOR or local entity payroll infrastructure. Paying salaries in BRL into local accounts provides cleaner compliance and better employee experience than foreign currency arrangements.

For contractors:

Misclassification risk exists if contractors work like employees regardless of payment method. Document scope, deliverables, and independence clearly. Repeated high-value international payments to individuals may trigger banking or tax authority scrutiny. Recognized payroll channels provide more defensible documentation.

For regulated industries:

Data protection and banking secrecy requirements across borders add compliance layers. Financial services, healthcare, and defense companies may need formal local structures sooner than other sectors.

Practical guidance:

Payment tools and methods are infrastructure; compliance depends on employment model documentation, proper classification, and accurate reporting, particularly important given security risks where hackers diverted over 540 million reais from Brazil's banking systems via PIX in 2025. Avoid informal workarounds like paying salaries into foreign accounts or using personal payment apps.

As one example, many mid market CFOs are surprised by how quickly Brazilian authorities expect formal payroll structures once headcount grows beyond initial experimental hiring.

The goal is building defensible employment and payment practices from the start rather than retrofitting compliance after problems emerge.

Using Brazil Payment Gateways And Local Partners For Payments In Brazil

A Brazil payment gateway or local payment partner connects you to multiple payment methods in Brazil including cards, Boleto, and Pix, and can support bulk payouts and invoice settlement.

When payment gateways or local partners make sense:

• High-volume contractor or vendor payouts requiring multiple payment rails

• Need for operational support, reconciliation improvements, and payment method flexibility

• Desire for consolidated reporting across different payment types

When payroll or EOR routes are simpler:

• Primarily paying employees where compliance and benefits administration matter more than payment rail variety

• Low to moderate payout volumes where standard provider flows suffice

Important considerations:

Payment gateways require additional vendor due diligence around compliance standards, data security, and exit planning. These partners optimize payment execution but don't replace employment model decisions or tax compliance requirements.

The choice often comes down to operational complexity versus control. Many mid market companies find that straightforward payroll or EOR arrangements meet their needs without requiring specialized payment gateway relationships.

Evaluation framework:

Assess whether gateway capabilities add genuine value over simpler approaches. Consider integration effort, ongoing vendor management, and alignment with your employment strategy rather than just payment method variety.

The goal is matching payment infrastructure to actual business needs rather than building maximum optionality before it's required.

Banking Options In Brazil For UK And European Finance Teams

Translating Brazilian banking into practical treasury, foreign exchange, and reconciliation processes requires coordination between your European headquarters and Brazilian operations.

Funding flows:

Typically send consolidated EUR or GBP from head office to an EOR, payroll provider, or Brazilian entity. They handle local disbursement in BRL to employees and vendors.

Foreign exchange decisions:

Determine where EUR/GBP to BRL conversion occurs. Options include your headquarters bank, payment provider, or locally in Brazil. Balance cost visibility and budgeting control against employee payment timing and satisfaction.

Reconciliation and reporting:

Define what statements and data you'll receive from Brazilian accounts or providers. Align payment cutoffs with European working hours where possible. Maintain clear audit trails for compliance and financial reporting.

Cash management:

Decide whether Brazil is funded just-in-time or maintains its own cash pool. Define responsibilities for local bank relationship management and day-to-day treasury operations.

Cross-functional alignment:

Ensure HR, Finance, and Legal teams share a unified Brazil banking strategy so payroll, benefits, and tax reporting use consistent data flows and timing.

Example flow:

Head office EUR account → Brazilian payroll provider/EOR → Employee local accounts, with local taxes and vendors paid directly by the provider.

This approach maintains European financial control while ensuring Brazilian compliance and employee satisfaction.

How Mid Market Leaders Can Build A Practical Banking Strategy For Brazil

A pragmatic Brazil banking strategy evolves gradually from simple international payments for initial hires toward local banking infrastructure as operations mature and strategic commitment deepens.

Strategic sequence:

First, clarify your business goals and timeline in Brazil. Are you testing the market, building a core hub, or responding to specific regulatory requirements?

Second, choose an employment model aligned to your goals and risk tolerance. Contractors suit exploration, EOR works for committed hiring without entity complexity, and owned entities provide maximum control for strategic markets.

Third, assess payment volumes, reimbursement needs, and compliance requirements. Select the minimum viable banking setup that supports these needs without over-engineering.

Fourth, plan foreign exchange and funding flows for payments in Brazil. Define reconciliation processes and audit data requirements that align with your European financial systems.

Fifth, establish triggers for transitioning to local banking, such as Brazil becoming an operational hub, hiring local leadership, or entering regulated activities requiring direct banking relationships.

Guiding principles:

Avoid both under-building (risking payment failures and compliance issues) and over-building (creating premature complexity and costs). Use a single strategic partner for coherent legal, payroll, and banking guidance rather than piecing together advice from vendors with different incentives.

The goal is building sustainable infrastructure that supports your growth without creating unnecessary operational burden or compliance risk.

Talk to the experts for tailored advice on structuring your Brazil banking strategy to match your specific business goals and growth timeline.

FAQs About Banking Options That Work In Brazil

How long does it take for a UK or European company to open a corporate bank account in Brazil?

Opening a corporate bank account in Brazil requires a structured approach after entity registration. Timelines vary by bank and company profile, typically taking several weeks to months rather than days. The process involves documentation, compliance checks, and relationship establishment rather than simple account opening.

Can we pay Brazilian employees in euros or pounds instead of Brazilian real?

Employment contracts can reference foreign currencies for calculation purposes, but salaries are typically paid in BRL into local Brazilian accounts for compliance and employee experience reasons. This approach aligns with local labour law expectations and banking infrastructure.

How should mid market companies handle currency risk when paying staff in Brazil?

Most mid market companies manage currency risk through budgeting policies and funding decisions rather than complex hedging instruments. The key is determining where EUR/GBP to BRL conversion occurs and building exchange rate assumptions into financial planning.

What are the banking implications of switching from contractors to employees in Brazil?

Moving from contractors to employees typically requires transitioning to structured payroll via EOR or local entity, changing payment routing and often strengthening the business case for local banking or specialized payroll providers.

How do banking and payments in Brazil compare to other Latin American markets for mid market companies?

Brazil has more sophisticated local payment methods like Pix and Boleto, plus specific regulatory expectations that require more tailored planning than one-size-fits-all Latin American approaches. The market's size and complexity demand country-specific strategies.

Do we need a Brazil payment gateway for paying employees and contractors in Brazil?

Usually not for standard payroll. EORs, payroll providers, or direct bank transfers typically suffice for employee payments. Payment gateways are better suited for ecommerce, customer payments, or high-volume contractor payouts rather than regular employment payments.

What is mid market in the context of global banking and employment decisions?

Mid market typically refers to companies with 200 to 2,000 employees or roughly £10 million to £1 billion in annual revenue. These companies face complex international decisions without enterprise-scale internal teams, making strategic guidance particularly valuable.or