In the final quarter of 2024, Aleph, the technology-driven solutions provider enabling the growth of global digital marketing, announced the acquisition of LocalPayment, a fast-growing payment service provider (PSP) in Latin America (LatAm), to bring together local payment capabilities with digital advertising solutions. In our exclusive interview with Aleph, we explore why the fusion of digital advertising and payments might just be the secret ingredient for success.
The LocalPayment acquisition has enabled Aleph to expand into LatAm and expand its portfolio of digital advertising platforms already present in over 130 emerging and high-growth markets. This has created a huge opportunity for the firm, as by 2028, the fintech ecosystem in LatAm is set to grow to $1.4trillion.
Payments make up a huge part of the fintech sector, and during the holiday season, many customers turn to fintech offerings to help them afford their purchases. As a result, it is crucial for organisations utilising Aleph’s offerings to have its infrastructure integrated during the holiday spending season.
Why is a good integration between payments and media so important?
For digital platforms, processing pay-ins (customer payments) and pay-outs (disbursements to creators, merchants, or partners) comes with transaction fees that impact margins and cash flow.
Aleph + LocalPayment offers a unique solution combining media and payments: instead of paying these fees in cash, platforms can offset payment processing costs with unsold ad inventory — a model that creates savings for platforms while unlocking new monetisation opportunities for Aleph.
By allocating a portion of their unsold ad inventory to cover transaction fees, platforms reduce direct expenses, freeing up capital for user acquisition, product development, or market expansion. At the same time, Aleph monetises the ad inventory, ensuring that what would have been a payment processing cost now becomes a revenue-generating asset.
This self-sustaining cycle gives platforms greater financial flexibility while allowing them to scale without the burden of high payment processing fees. No other PSP (payment service provider) can offer this model, making it a one-of-a-kind advantage for platforms looking to optimise costs and maximise growth.
How will the expansion into Asia, and the Middle East and Africa differ from LatAm?
Aleph already operates in 150+ markets across Latin America, Asia, the Middle East, and Africa, managing the complexities of billing, collections, credit underwriting, FX, tax, and treasury in emerging economies. With its recent acquisition of LocalPayment, a PSP active in 17 Latin American countries, global expansion is the next logical step — whether through organic growth, acquisitions, or both.
Latin America has served as a proven model for integrating payments and media, offering localised payment solutions and regulatory expertise. Expanding into Asia, MENA, and Africa will require tailoring payment solutions to local market dynamics, integrating alternative payment methods, and ensuring regulatory compliance in each region.
Unlike other PSPs, Aleph already has deep market presence and expertise in these regions, making expansion a natural and strategic move. By leveraging its existing FX, treasury, and cross-border payment capabilities, Aleph is uniquely positioned to scale payments globally while maximising its media monetisation model.
What are some common misconceptions surrounding cross-border payments and how is LocalPayment by Aleph addressing these?
A common misconception is that cross-border payments are expensive and slow, but Local payment by Aleph reduces fees and settlement times through efficient payment processing. Many also assume one payment method works everywhere, when in reality, markets favor local alternatives. LocalPayment by Aleph integrates 540+ local payment methods to ensure seamless transactions. Another myth is that FX rates are fixed and transparent, but hidden costs can add up — Aleph provides real-time FX optimisation with competitive, transparent rates.
Compliance is another challenge, as businesses often underestimate regional regulatory differences — Aleph handles tax, compliance, and reporting across 150+ markets to ensure businesses stay compliant. Finally, cross-border payments aren’t just about moving money. LocalPayment by Aleph’s unique payments + media model lets platforms offset payment fees using ad inventory, turning costs into a growth engine rather than just an expense.
Does seasonal spending make it more difficult for merchants as they are more likely to get more orders from different countries/payment methods? How can LocalPayment by Aleph help with this?
Absolutely. Peak shopping seasons like Black Friday, Cyber Monday, and Christmas are a prime opportunity for increasing business revenue – but they can be challenging for merchants due to the surge in orders and the diversity of payment methods used by international customers.
Aleph’s LocalPayment platform simplifies this by offering a single API integration that supports over 640 local payment methods, ensuring that merchants can seamlessly process transactions from anywhere in the world. This allows businesses to focus on fulfilling orders and providing excellent customer service, even during the busiest periods.
What are some previous holiday spending trends that have emerged and how will cross-border payments firms be able to capitalise on this?
Thanks to the strength and effectiveness of digital marketing, we’ve seen a significant increase in cross-border shopping during holiday seasons, with consumers seeking unique gifts and deals from international retailers. But not only in the FMCG area, also generally speaking the volume of business kicks into high gear as the holiday season closes in.
With an experienced payment service provider as partner, businesses can capitalise on this trend by providing seamless and secure payment solutions that cater to the specific needs of both merchants and consumers. This includes offering a wide range of local payment methods, fast pay-in and payout processing to minimise operational costs.
With increased fraud and more demand from consumer shopping on the rise this holiday season, how can Localpayment by Aleph ensure merchants’ systems can cope?
We understand that security is paramount, especially during peak shopping seasons. Aleph’s LocalPayment platform prioritises security and is constantly working towards adhering to the highest KYC, data protection and most stringent compliance standards, such as PCI level 1 and local data protection rules.
We also leverage advanced fraud detection and prevention technologies to protect our partners from fraudulent activities. Our robust infrastructure is designed to handle increased transaction volumes, ensuring that our partners’ systems can cope with the holiday rush and provide a smooth and secure experience for their customers.
