The Fast Track to sell in Brazil & Mexico in 2022

Latin America is still a cash-first economy, with a large unbanked population. Some consumers don't have easy access to credit cards enabled to make online purchases. This is why cash remains one of the most used payment methods in the region.

With voucher payments, customers can pay in cash for their online purchases. This payment method is part of the Latin Americans' daily routine for both online and offline payments. In Brazil, for example, vouchers represent 13% of the total e-commerce volume, and in Mexico, the share is 16%.

Although credit cards are the first form of payment that comes to mind and are offered by international companies that sell in Latin America, this is not the reality in most countries.

Each country has its own local card environment, and they play an important role in enabling more people to buy online. Companies that want to achieve the region's full potential and improve approval rates must offer credit and debit cards through local acquirers and bank connections.

Installments (parcelas in Brazil, cuotas in Argentina, meses sin interés in Mexico) refer to payment plans that allow consumers to pay for a purchase over the course of months or years without paying interest.

Offering Installments is a game-changer. Many Latin American consumers look to use Installments to fit their big-ticket purchases into their budget. Also, credit card limits are usually very low, so consumers are unable to pay for expensive purchases all at once otherwise they are left without limits for the rest of the month.

Alternative Payments, like bank transfer, instant payments, and digital wallets are gaining traction in Latin America as a result of increased mobile adoption. Latin Americans, specifically younger generations, look to use their mobile phone to make online purchases.

With just one integration, you can allow customers to easily pay for their purchases by using their favorite method and with the bank of their choice.

Digital Wallets are already widely adopted around the world and are starting to gain traction in Latin America. The increase in digitalization is definitely one of the reasons for this since customers are getting more comfortable moving their finances online.

Digital wallets end up being an easy and secure way for people that don’t have access to credit cards, or a bank account, turning into a viable alternative to the traditional financial system.