Q&A: RS2’s Radi El Haj on tackling the payments complexity crisis and unlocking the LATAM market

The global payments landscape is facing a “complexity crisis.”

For fintechs in mature markets like the UK and US, this crisis manifests as an oversaturated ecosystem of siloed solutions, leading to high operational costs and slow innovation due to technical debt. Conversely, in high-growth emerging markets like Latin America, complexity arises from missing infrastructure, fragmented regulations, and a deep-rooted cash culture. Navigating this dual challenge requires more than just advanced technology; it demands a long-term vision, deep local understanding, and a unified strategic approach.

To explore how payment leaders can master this complexity, Bobsguide spoke with Radi El Haj, CEO of RS2, a global payment technology firm with over 35 years of experience. We discussed the critical success factors for Western fintechs eyeing LATAM, the future of payment infrastructure, and why the region is becoming a hotbed of exportable innovation.

The LATAM Paradox: Beyond Translation to True Localization

Latin America’s impressive growth statistics, rising digital adoption, and tens of millions of underbanked consumers make it an irresistible target for Western fintechs. However, many underestimate the deep structural, cultural, and operational dynamics that define the region.

According to El Haj, success in LATAM is not about simply translating an app into Spanish or Portuguese; it’s about a complete “contextual transformation.”

He warns, “Success here is not really translating your app, but it’s about rethinking your model in order to deeply integrate into the community, integrate into the regulatory landscape, and make sure that you have local partnerships that help you in shaping your products and your market offering.”

This means building products tailored to local norms, where consumers may be mobile savvy but deeply distrustful of financial institutions. It requires integrating with local payment tools like Pix in Brazil or PSE in Colombia and navigating a world where traditional credit scoring mechanisms are scarce. Critically, it demands patience. As a family-run business, RS2 embodies a long-term mindset, which El Haj sees as essential. “In a region like LATAM, where you really need to have a lot of trust and credibility that outweighs any technical specs and flashy solution, this matters immensely,” he states.

“LATAM rewards fintechs with deep cultural intelligence and a commitment to the long term, not those who are chasing a quick win.”

A Proactive Regulator: A Key Differentiator

One of the most profound differences for Western fintechs entering LATAM is the role of the regulator. While regulators in the US and Europe are often seen as reactive rule-makers, their LATAM counterparts are frequently proactive partners in innovation.

El Haj explains that regulators in the region often play a dual or even triple role: “They are rule-makers… they are market-shapers, helping to define what the ecosystem should look like, and innovation catalysts by encouraging solutions to promote inclusion and economic growth.”

This collaborative approach, which includes creating regulatory sandboxes to test new products, is a key reason for the success of many local fintechs. For foreign players, engaging directly and transparently with these bodies is not just recommended; it’s a prerequisite for success.

Solving Complexity with a Unified Platform

Whether dealing with the oversaturation of mature markets or the infrastructure gaps in emerging ones, the solution lies in simplification. RS2’s strategy is built on abstracting away this regional complexity through a single, unified platform that handles everything from issuing and acquiring to clearing and settlement.

“A client joining us or integrating with us, they need to have one single integration irrespective where they are located,” says El Haj. “Through that single integration, they will be able to really expand with us in the different markets.”

This approach allows fintechs to focus on their core business while the platform handles the complexities of local taxes, regulations, and infrastructure challenges—such as intermittent connectivity, which requires offline capabilities unheard of in Europe.

This model also embeds risk management into the architecture from day one. Rather than treating compliance as a final gatekeeper, RS2 builds for it by design, using configurable engines for KYC/AML and swappable fraud models tailored to regional behaviors.

This ensures that speed and innovation do not come at the expense of security and control.

Innovation from the South: Lessons for the West

Far from just catching up, Latin America is producing groundbreaking financial innovations that Western markets should watch closely. Brazil’s instant payment system, Pix, is a prime example, processing over 4 billion transactions a month for everything from retail purchases to tax payments at zero cost to the consumer. El Haj notes, “This kind of state-led infrastructure innovation shows what’s possible when regulators act as ecosystem builders, not just policy enforcers.”

Furthermore, the region is pioneering the development of “super-apps” that embed a wide range of financial services—from micro-loans to insurance—directly into platforms serving the vast informal economy. These models, born out of necessity to serve unbanked and low-literacy populations, offer powerful lessons for the creator and gig economies in the West.

For fintech leaders considering international expansion, El Haj’s advice is clear and concise, built on three pillars: “Listen, adopt, and scale.”

By listening to local needs, adopting their products and models accordingly, and then scaling with a resilient, unified infrastructure, fintechs can turn the global complexity crisis into their greatest strategic advantage.