In an era marked by digitalisation, an evolving eCommerce and online payments landscape is redefining the way consumers shop and pay. Latin America (LATAM), a region where diverse economies intertwine with unique cultural nuances, online shopping and local payment methods are becoming the norm.
Localised payments are high in popularity across the LATAM region, demonstrating the varied consumer preferences per LATAM country. Bank transfers is a widely used payment option, being the go-to form of payment for more than a third (38%) of Colombians as of 2022. Moreover Pix, a Brazilian bank transfer payment solution, marked 23% of eCommerce sales at the nation in 2022. This is partly fuelled by the prevalence of eCommerce shopping in the country. To illustrate that, research by Statista uncovers that LATAM’s eCommerce market is primed to hit US$83.40 billion in 2023. Brazil and Argentina have the highest share of eCommerce sales revenue in 2023 – standing at 25% and nearly 24%, respectively.
In this article, we will dive into LATAM’s most trending local payment methods, looking at how they’re revolutionising the way regional consumers make payments.
APMs in LATAM at a glance
Pix
Pix is a popular instant bank transfer payment method in Brazil that’s connected to 700+ financial institutions. Consumers can scan a QR code for in-store purchases or enter a Pix code into their online banking or eWallet apps for digital transactions. Pix achieved a milestone by processing 40 million payments in a single day after its rollout in 2020. For merchants aspiring to expand in Brazil, adding Pix to their payment strategy can be advantageous for their revenue and conversions.
Boleto Bancário
Pix is a popular instant bank transfer payment method in Brazil that’s connected to 700+ financial institutions. Consumers can scan a QR code for in-store purchases or enter a Pix code into their online banking or eWallet apps for digital transactions. Pix achieved a milestone by processing 40 million payments in a single day after its rollout in 2020. For merchants aspiring to expand in Brazil, adding Pix to their payment strategy can be advantageous for their revenue and conversions.
OXXO
OXXO is a widely used voucher payment option among Mexican consumers, as it enables them to conveniently pay via cash for their online purchases. By choosing OXXO at online checkout, users generate an instant voucher with a unique reference to redeem in one of the over 18,000 OXXO locations. With more than a third (35%) of locals transacting with vouchers and/or cash, adding OXXO to your payments mix can help you capture more Mexican customers for increased revenue.
SPEI
SPEI is a real-time electronic money transfer service developed by Banco de Mexico. It enables Mexican consumers to securely and easily complete transactions using their banks or via online and mobile banking 24/7. SPEI boasts an impressive 99% efficiency rate and processes a total of 855 million payments. This fast and seamless payment option transfers funds between bank accounts, including recurring payments such as loan repayments or one-time purchases such as gifts, making it a highly favoured option for digital transactions.
Efecty
Efecty is a widely trusted payment and transfer method in Colombia, allowing locals to perform digital transactions through cash. With 9,000 physical payment points available, this payment type is highly accessible to local consumers. In 2022, Efecty processed transactions worth $2.2 billion, contributing to the 8% share of cash-based payments in LATAM’s eCommerce. As Efecty accommodates transactions in local currency and language, adjusting your payments strategy that can help you expand your customer base and enhance your payments acceptance.
PSE
PSE is a convenient and speedy real-time online bank transfer payment option in Colombia that’s supported by 20 national banks and payment solutions. PSE provides consumers with heightened security, as it allows them to complete transactions in their trusted online banking environment. While PSE was the preferred choice for most (46%) of Colombian shoppers, it also testifies to digital payments accounting for a transaction value of US$14.65 billion in 2023. To accelerate your business growth in Colombia, you should consider offering PSE at your online checkout.
Servipag
Servipag is a trustworthy and smooth payment platform enabling Chilean consumers to perform various transactions by selecting one of the several payment options offered at checkout. Locals can complete their payment with Servipag online – either through internet banking or debit cards. They can also choose to pay by cash through a voucher that can be redeemed at any Servipag physical payment location. Servipag supports an average of 9 million transactions per month. The solution is utilised by nearly two fourths (40%) of Chilean consumers. By offering Servipag, you can engage Chilean buyers and maximise your business’ profitability.
Extend your global footprint in LATAM with local payment methods
LATAM is a vibrant region with cultural, economic, and consumer characteristics that vary from one nation to another. Integrating local payment methods into your payments strategy to cater to different online payment needs is integral to maximised profitability. At emerchantpay, we have an experienced, on-the-ground team that can equip you with expert advisory and data-driven insights to help you meet unique consumer attitudes.
We work with businesses of all sizes that have expansion ambitions, supporting them in navigating the regional payments ecosystem. Besides global and payment methods, our payment solutions include a plethora of other features, such as global acquiring, fraud and risk management, and many more.
Contact our payment experts today and learn how you can skyrocket your revenue in LATAM by integrating key preferred options into your payment system.