Latin America is still seen as a group of developing economies, but it has still made strides in the digital transformation of payments, often even surpassing industrialized countries like the United States in areas like immediate and real-time payments.
In 2023, commerce into and out of the 33 nations that make up Latin America will be attractive for growth since eCommerce businesses both inside and outside the area are looking for more affordable ways to boost online sales with the quicker settlement.
Noting that Latin America has a total addressable market of over 600 million customers who collectively produce close to $6 trillion in GDP, Daniel Passarelli, managing director of Worldline’s Latam division.
Passarelli stated that the PIX near-real-time payment system, which was introduced by the Brazilian central bank in 2021, already has over 140 million users.
With the launch of Guaranteed PIX, an installment credit product akin to buy now, pay later (BNPL), and PIX International, an upcoming variation for usage outside of Brazil, PIX is now expanding. Although its major application is still peer-to-peer transactions, as Passarelli noted, individuals are already using PIX to pay for ice cream on the beach or a TV for the house.
The conclusion is that adoption is key and that this underbanked continent is exceeding affluent countries in many areas with regard to payments innovation. For cross-border eCommerce firms aiming to expand in a year that may wind up being blighted by a global recession, it has significant ramifications.
