In Colombia, Efecty stands out as a widely recognised brand in the realm of payments. Despite the prevalence of credit and debit cards for both online and in-store transactions in the country, Efecty serves as an excellent alternative for a significant portion of Colombian consumers. However, not everyone grasps the full scope of what Efecty entails and the range of services it offers in the payments market.
In this article, we will explain what Efecty is, the main benefits of using it and provide insights into how businesses can integrate it into their operations.
What is Efecty?
Operating since 1997, Efecty is an online payment method that enables Colombian consumers to purchase online items by paying in cash. In other words, Efecty is a voucher cash payment and transfer method. This payment method can be used by consumers at more than 9,000 Efecty physical service points, such as convenience stores, supermarkets and other retail locations across Colombia.
Efecty is one of the most widely known and trusted payment methods in Colombia that can be used for a range of purchases, from online shopping to utility bills. Offering a payment option like Efecty can be a game-changer for global businesses wishing to succeed in this market.
How does Efecty work?
At online checkout, customers select Efecty as their preferred payment method and input their email address on the merchant's website. Once they place their order online, they receive a voucher with a PIN code on their registered email. To complete the payment, customers need to visit an Efecty physical payment location, show the voucher and then pay with cash for the order they placed online. Merchants receive the payment confirmation almost in real time.
Additionally, Efecty allows customers to carry out online money transfers via the Efecty website or smartphone app. All they need to do is log in to their Efecty account and input the necessary details. ID checks will be performed and users will need to confirm the transaction using PSE (which stands for Payment Security Environment) – a banking system developed by ACH Colombia. The process of transferring funds through Efecty can also be completed offline. The user visits an Efecty location, presents their ID and other information on the payment recipient and hands over the chosen payment transfer amount to the Efecty representative to complete the transfer online.
What is the payment process with Efecty?
Efecty offers payment orders and transfers to more than 200 countries around the world. Here is a breakdown of how consumers can use this payment method:
- The customer selects Efecty as a cash payment method at checkout
- From checkout, the consumer will be able to generate the payment number. The payment will appear as pending until the process is complete
- The customer must go to any Efecty point to make the payment in cash with the number generated at checkout
- Once the payment is received, the payment service provider (PSP) will notify the merchant so that the product or service can be delivered
Why do merchants and consumers use Efecty?
Efecty is a local payment in Colombia able to accommodate various sectors, including travel, gaming, general eCommerce and retail. Below is an overview of why Efecty is such a popular payment method in the region.
Why is Efecty so popular in Colombia?
Efecty represents more than 50,000 payment operations per year in the country. In 2020 alone, the payment method represented 58,355 operations in Colombia, totalling more than $9.95 trillion during the same year. Cash-based payments accounted for 8% of the share in Latin American eCommerce as of 2022.
The above figures demonstrate how dynamic the LATAM market is for digital merchants with expansion ambitions who aspire to maximise their sales volumes. Notably, the adoption of eCommerce sales across the region continues to grow at a stellar pace. By 2024, the revenue of Latin American eCommerce is projected to hit US$112.22 billion, while the eCommerce users in the region are expected to hit nearly 28 million by 2025 – up from 26.2 million in 2022.
Colombia is a key driver in the success of eCommerce shopping in LATAM. The nation is estimated to hit high peaks of eCommerce revenue, which totalled US$10.07 billion in 2023. Part of the high traction that online shopping has among Latin Americans is the use of alternative payments, with Colombia accounting for most (50%) of their volume. Colombia’s cross-border share of 14% as a total of regional eCommerce sales also testifies to the potential of this up-and-coming market for online businesses looking to grow their revenue.
Benefits of using Efecty
Efecty delivers numerous benefits which include, yet are not limited to, the following:
Real-time confirmation
The merchant is notified about the payment as soon as the customer redeems the voucher at an Efecty physical payment point. This way, the merchant can dispatch the order immediately for an efficient and optimised customer experience.
Strong presence in Colombia
With over 9,000 physical locations, Efecty covers nearly the whole Colombian territory with 99% of the nation’s cities.
Multiple services in one payment solution
Localised payments can help reach more customers and optimise a business' conversion rates. Efecty is a trustworthy and familiar payment solution trusted by Colombian consumers. Not only is it localised in the Spanish language but also supports transactions in Colombian pesos.
Accepting Efecty payments with emerchantpay
To enter and remain competitive in the Colombian market means that global brands need to accept local payments such as vouchers, which are a national preference. One of these payment types is Efecty.
With an experienced payment service provider like emerchantpay on board you can rest assured that your business is catering to the unique payment needs of your target local consumers. In addition to our global acquiring network, we’re also boasting a dedicated on-the-ground team of team experts who deeply understand the LATAM payments ecosystem. Through expert advisory and strategic advisory, we can help you access this vibrant market and accelerate your business growth in Latin America.
Want to allow Colombians to pay for your products with Efecty and maximise your business revenue? Contact our team of payment specialists today and learn more.