Regional cross-border trade is an increasingly accessible opportunity for local businesses in Latin America. Understanding how each country has its preferences for making and receiving payments is critical for companies looking to expand their business in the region. Although it may seem uniform, the financial habits of each nation have their own peculiarities.
This is demonstrated by the study carried out by Rapyd. Brazil, for example, leads the ranking in the use of credit cards, with 82% of respondents having used the payment method in the last 30 days. Another point to note is Pix, as preferred payment method.
The study shows that digital payments, including those made with cryptocurrencies and with credit/debit cards that support cryptocurrencies, they have shown great growth and are dominating the payment sector.
Another important finding from the survey is that the bank debit card is the financial product with the highest penetration in Latin America; 70% of those surveyed confirmed having one. The largest users are Chileans with 86% ownership of this product, followed by Argentines with 78% and Mexicans with 71%. Around 67% of the Brazilian respondents stated that they prefer this means of payment.
Even with a large part of the population unbanked, Brazil appears with 69% of people having a checking or savings account. The countries with the highest rate of access to banking are Argentina and Colombia, with 70%. Mexico occupies the last place of the seven countries surveyed with only 47% confirming that they have a savings account.
A curiosity of the survey is Argentina, leader in crypto investment. Among the six markets surveyed, This has proven to be the country that trusts this branch the most, with 41% of those surveyed stating that they invest in cryptocurrencies through an application, largely due to the economic situation in the country.. In Brazil, this number is 26%.
“In the region, Brazil stands out with Pix as the preferred payment method and also the most used. It is important to highlight the success of this local tool that conquered Brazilians and is present in the daily lives of citizens. Innovative, simple and accessible technology”, says Marc Winitz, Rapyd’s marketing director.
LATAM, a region of explorers
The majority (60%) of the Latin Americans surveyed consider themselves “explorers” in payment technologies and are open to exploring and adopting innovative technologies. In Brazil, 74% of those surveyed said they are in the habit of using banking applications. It is the second place, only behind Chileans, with 79%. eWallets also appear in a prominent position, with Argentina and Brazil being the countries where they are most used (73%). They are followed by Chile (67%), Peru (62%) and Mexico (54%), while Colombians use these applications the least (48%).
The security of your data remains the top priority for the digital consumer: The most important thing for the region when considering a payment provider is data security (76%). Second is “get paid the same day” Y “be able to receive a notification of the payment status“, both with 61% of the mentions.
“What we see in Brazil today is a scenario with interesting opportunities for innovation in fintech. Brazilians have a mobile-first attitude, buying different types of products online (clothes, shoes, accessories, cosmetics are the main items). There are also a variety of payment options available. Companies that seek to expand their business in the country must make the preferred means of payment viable, guarantee the security of personal data and the speed of transactions.”, concluded Marc Winitz, Rapyd Marketing Director.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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