Essential local payment preferences in Latin America

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Latin America is proving to be an entirely new opportunity for digital payments.

In the Latin American Payments Digitization Playbook, a collaboration between PYMNTS and Kushki, double-digit growth rates are in place across the region, and are expected to last for the next several years. There are an estimated 267 million online consumers in the region, served by a growing number of FinTechs, as well as legacy financial institutions (FIs).

Cross-border trade remains of course a lure. For example, as noted in the November report, the Guatemalan FI Banco Industrial recently announced a partnership with the money transfer and remittance service Western Union that will allow its users to make and receive money transfers. from over 200 countries. Between 7% and 10% of Guatemalans live abroad, as we noted, “which means that it is essential that customers inside and outside the country have easy access to payments. digital fast ”.

In Latin America, as in other markets, meeting local payment preferences is essential. As PYMNTS and Kushki noted, recent reports in 14 global markets – including eight Latin American countries – found that local payment methods accounted for 83% of ecommerce spend.

Meanwhile, cash still accounts for up to a quarter, if not more, of e-commerce transactions in Latin America. The use of plastic credit and debit cards, QR code tools, and mobile wallets have gained traction.

As shown in the tracker, 56% of e-commerce purchases in Latin America were made with credit cards in 2020, for example, while 14% of those purchases were made with debit cards. Additionally, 66% of Latin American consumers say they plan to use the (relatively newer technological advancements) of mobile wallets and QR codes in the next few years.

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NEW REPORT: TECHREG â„¢ CHRONICLE – DECEMBER 2021

On: This report represents the inaugural edition of the TechREG â„¢ Chronicle. The regulation of digital companies appears to be one of the key issues of our time. Through this new publication, we seek to contribute to the debate and discussion about when, how and when not to regulate digital businesses and the key technologies they use.


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