Belvo and dLocal Partner to Revolutionize Recurring Payments via Direct Debit in Mexico

Belvo and dLocal have partnered to integrate bank direct debit into the payment infrastructure for businesses in Mexico. This move addresses the critical challenge of failed renewals and high operational friction in recurring billing, offering fintechs and service providers a more reliable alternative to traditional card-based collections in a rapidly maturing digital economy.

What was announced

The partnership focuses on expanding the use of direct debit for businesses that process recurring payments, such as memberships, renewals, and automated charges. By leveraging Belvo’s direct debit infrastructure alongside dLocal’s extensive payments network, the collaboration aims to reduce the failure rates often associated with card-based renewals. This is particularly relevant in Mexico, where the digital ecosystem is scaling in both volume and complexity. According to Banco de México, debit and credit card transactions reached 12,118.9 million between January and December 2025, representing a real value of 6.9 trillion pesos.

Despite this growth, businesses face significant hurdles when transactions fail or when they rely on a single channel for collection. Belvo’s infrastructure is designed specifically for collecting payments directly from bank accounts, which can lower costs compared to other methods. Meanwhile, dLocal brings its global scale to the arrangement; in 2025, the company processed a total payment volume (TPV) of US$41 billion—a 60% increase from the previous year—and generated over US$1 billion in revenue. The joint effort targets merchants and platforms that require robust, automated systems to sustain recurring revenue streams and minimize the friction inherent in monthly billing cycles.

"In Mexico, the conversation around digital payments is entering a more mature phase. The challenge is no longer simply to enable more payment methods, but to build more robust collection systems that are better adapted to users’ actual behavior. This partnership with dLocal responds to that need: providing infrastructure that helps businesses reduce friction, diversify their collection channels, and better sustain recurring revenue,"

Federica Gregorini, Belvo’s General Manager in Mexico.

The companies involved

dLocal is a major player in the cross-border payments space, specializing in emerging markets. The company operates a network that supports more than 1,000 payment methods across more than 60 countries, positioning itself as a bridge for global merchants looking to access consumers in Latin America, Africa, and Asia. Its focus on local payment methods has made it a key partner for international platforms seeking to navigate fragmented financial landscapes. With a focus on high-growth regions, dLocal has established itself as a critical link for companies operating in markets where traditional global payment rails may be insufficient.

Belvo is a leading open finance platform in Latin America, providing the connectivity and infrastructure necessary for businesses to access financial data and initiate payments. In Mexico, it has specifically focused on developing direct debit solutions to streamline how companies collect funds. Unlike traditional card processors, Belvo’s technology emphasizes direct bank-to-bank interaction, which is often more cost-effective and less prone to the expiration or blocking issues that plague card-on-file transactions. Together, these two companies represent a significant force in the Latin American fintech sector, combining dLocal’s global reach with Belvo’s specialized regional infrastructure.

What FF News has reported before

FF News has extensively tracked dLocal’s expansion and its impact on emerging market commerce. The company’s research has previously highlighted the necessity of localized financial tools; a dLocal report found that 71% of emerging market shoppers abandon carts if local payment methods are unavailable. Further data from the firm suggested that local payment methods can boost merchant transactions by up to 55%.

The provider has also been active in high-profile partnerships, such as when dLocal and LinkedIn partnered to enable local currency payments across Latin America. Beyond the Americas, the company has worked to bridge gaps in other regions, recently collaborating with Western Union to launch remittance payouts in Africa.

What this means

This partnership signals a shift in the Mexican fintech market from simple payment access to operational efficiency. For years, the industry focused on getting people into the digital economy; now, the priority is keeping them there through seamless renewals. By prioritizing direct debit, Belvo and dLocal are putting pressure on traditional card networks and banks that have struggled with high decline rates for recurring transactions. It raises a critical question for the sector: will direct bank-to-bank transfers eventually marginalize credit cards for subscription services? As merchants seek to protect their margins from high interchange fees and churn, direct debit is becoming a strategic necessity rather than just an alternative.