👀 Our beloved LATAM: the future of payments in the fastest-growing GEOs in the region

👀 Our beloved LATAM: the future of payments in the fastest-growing GEOs in the region

We kick off the week with an expert analysis on trends and future prospects in the payments industry. Ignacio Morales, CEO of Mexican fintech Unlimit Mexico, shared his insights with ThePaypers.

Country Analysis:

Brazil 🇧🇷:

➡️ Currently, 82% of the population has a bank account. This is largely due to the expansion of digital banks like Nubank and digital wallets like PicPay, which have facilitated widespread adoption of the instant payment system #Pix.

➡️ In the future, a gradual reduction of cash and paper-based methods like Boleto is expected, while credit and debit card usage will continue to grow along with Pix, which is set to compete with these methods. New features such as Pix Parcelado (installment payments) and Pix Automático (recurring payments) are expected to be launched this year.

➡️ Additionally, the Digital Real is in testing phase with a successful launch anticipated.

Mexico 🇲🇽:

➡️ Despite being a strong economy, many people still rely on cash and lack access to banking services. Methods like OXXO Pay (where users print a voucher and pay at physical stores) will remain relevant for a long time.

➡️ However, digital payments are evolving in a manner similar to Brazil. Nubank is also present in Mexico, where approximately 19 million users are active in neobanks (about 15% of the population), similar to where Brazil stood in 2018. With its own payment system #SPEI, Mexico is poised to experience significant growth in digital payment adoption.

Argentina 🇦🇷:

➡️ Argentina depends less on cash compared to Mexico.

➡️ In the e-commerce sector, credit cards lead with a 54% market share, followed by digital wallets at 23%, a figure that has surged in recent years.

➡️ Market diversification: The payment platform #MercadoPago previously accepted card payments only through its wallet, but with new interoperability introduced by the Central Bank, MercadoPago’s market dominance could shrink.

Colombia 🇨🇴:

⏩ Colombia stands out for its high use of bank transfers in e-commerce, which account for 32% in 2023, thanks to the success of #PSE, which redirects users to online banking pages.

⏩ Nubank is already in Colombia, and with the popularity of digital wallets like Nequi, Bancolombia a la Mano, and DaviPlata, the country is likely to follow a "Brazilian scenario".

⏩ According to the “Financial Inclusion Report” by Grupo Credicorp, 61% of Colombians already manage at least one digital wallet.

#basicinfo #Mexico #Brazil #Argentina #Colombia

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