February 28, 2021
The banking situation in Latin America is rather poor. More than 65% of people don't use financial services at all. Besides, the economic system in this area is unstable. Nevertheless, this area is worth paying attention to. The local market is promising, as there has been a significant growth of the middle class. Countries in this area are in different stages of development, so we'll discuss several to get a better understanding of the situation.
While in some developed countries online banking and credit cards are widely used, in Latin America bank deposits and mobile payments prevail. By adding these options, you will be able to reach more customers. Each person can pay the bill in cash in a small shop, so most of these options are based on this. So, online payments are available even for those who do not have an account in a bank. About 250 million residents of Latin American countries don't have one. If you want to know more about payment methods that are popular in this area, keep reading. We'll summarize the payment methods available to understand their potential for your business.
The biggest e-commerce market in Latin America is Brazil. If you want to reach more consumers, consider offering them Boleto Bancário. It's a barcode that can be issued online and paid for in numerous stores and ATMs offline. This option is considered one of the most convenient for locals. Besides, it is regulated by the Brazilian Federation of Banks.
Local e-wallets, such as PagSecuro and MercadoPago are also widely utilized. They can be replenished via different methods, like debit cards, bank transfers, etc. Hipercard and Elo (local credit cards) are also widespread in this area.
After Brazil, goes Mexico. This market is the second-large. According to specialists' opinions, the local market is constantly developing, so an increase in e-commerce sales is expected. Understandably, if you are interested in developing a business in this area, paying attention to local payment methods is essential. We'd recommend you add cash options. Toditocash and OXXO are the most popular in this area.
In Argentina, your options are quite similar to what we have already discussed. Speaking about cash payments, Pago Fácil and RapiPago are popular. The procedure is simple. All you have to do is print the voucher and bring it to a shop. With the help of local bank transfers, the offer will be completed.
We have discussed the countries whose e-commerce sales markets are considered the biggest. Speaking about other countries in this area, some of them can boast of their own payment methods. For instance, in Colombia, there are PSE, Baloto, Efecty. In Peru, Efectivo is used. Redcompra is widespread in Chile and Redpagos - in Uruguay.
