New Year, New Tools? See what’s coming in the area of payment in the LATAM region
Digitalization continues strong in Latin America, especially after the pandemic and the limitations that this crisis has caused in the whole world, including the region. Growth in sales of cell phones, computers, increased adoption of remote collaboration and communication platforms, distance learning, and much more are clear signs of the rapid adoption of new technologies and a new way of relating in today’s society.
Unsurprisingly, these trends have also reached the financial industry, including payments. With the end of 2021 approaching and companies from all sectors more than ready to resume growth and take advantage of reopening opportunities, it is worth exploring some trends in the industry and preparing for the trends to come.
1. Real-time payments
If there is one payment method that can be considered an undisputed success, it is Pix. Launched in Brazil in November 2020, the system allows payments practically in real time and with no fees, which revolutionized the fund transfer landscape in the country and won over the public, with half the country already adhering to the system.
Now, in addition to the basic instant payment functions, change and withdrawal options are also being made available with Pix, which should further streamline payment and purchase options in the physical and virtual worlds. Similarly, in Mexico there is the system known as Cobro Digital, or CoDi, which also grew exponentially in the pandemic, increasing by 8 times the volume of active users of the system in the country.
It is also worth mentioning a market study by Capgemini, which shows that the markets where digital wallets are growing most are in Africa, the Middle East, and Latin America. This shows how people are increasingly embracing digital options for making payments and purchasing services and products, moving away from traditional, physical ways of doing this.
2. Open Banking
The creation of a transparent, competitive, and customer-centric banking environment is an ambitious project, but it is something that is already in its final stages in Brazil, with the 4th and last stage due to take place by the end of 2021. The implementation of Open Banking in the country will put the customer in control of their data, allowing it to be shared with other institutions, which opens space for more innovative offers of products and services by competitors.
This movement should gain traction in Latin America, making the entire continent more competitive, agile and digital in the medium term.
3. Focus on the customer
As mentioned above, the search for an increasingly personalized and positive experience should intensify, and companies will certainly seek the tools for this in the digital environment. A major differential in this respect is in offering agile and intuitive forms of payment and after-sales service, strengthening the company’s image with its public at all stages of their journey.
In this sense, BoaCompra is a valuable partner for companies looking to expand business in the region, offering robust and easy-to-use checkout solutions, native service teams with 24/7 availability, and great experience with the realities and legislation of each country in the region. BoaCompra also allows for local payouts without the need to establish an entity in the country, and facilitates the remittance of capital to anywhere in the world.
The scenario of broad competitiveness, high digitalization and customer focus generates many opportunities, but makes the market more selective, putting companies that constantly seek innovation and excellence in service ahead of the rest.
Therefore, those who want to grow more in Latin America need to be aware of the trends in payments, counting on a partner that will bring the best of the industry directly into your business. Talk to our specialists right now and see how we can help.