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According to the report “Trends in Payment Instruments 2013” presented by AFI (Analistas Financieros Internacionales) and Tecnocom, the use of all payment methods in Latin America in 2013 increased dramatically in comparision to 2012, although by looking at these figures up close, it is possible to note that credit and debit cards lead the growth by number of operations and are used in 60.7% of all transactions.
Credit card is the preferred payment method for online purchases in Brazil, Colombia and Chile – 45.7%, 43.4% and 41.0% shoppers have used it on some occasion, respectively. In Mexico and the Dominican Republic payments are mainly made by cash (payment on delivery) – 32.2% and 29.2%, respectively.
In Latin America, sales volume doubled in recent years (in 2013 increased 28.5%), which is related to the growth of the financial inclusion and bankarization rate, higher penetration of electronic payments methods and the greater security of the channel. The payment transactions volume reached the figure of U$ 12.4 billion in 2012.
Bank customers are the main online buyers in all countries and in most of the cases the unbanked are just added to this channel. However, Brazil is an exception to the rule – 4 out of 10 unbanked have done some online purchase thanks to the Boleto Bancário, payment method that allows secure payments without a formal relationship with financial institutions. This example proves that Brazil has a distinct profile when it comes to payment methods use and draws attention to the importance of non-cash methods in electronic commerce.
The report highlights that the significant regional M&A deals in Latin America together with the advent of change on the technology front has powered the gradual switchover from paper-based payment instruments (cash and checks) to other instruments and channels, such as Internet and mobile devices.
allpago international provides a full-spectrum of payment services in the LATAM region. allpago works as a payment gateway, a white label payment service provider (PSP) or a product and service reseller for merchants and payment service providers interested in the LATAM markets.
allpago’s features include one-click payments, recurring payments, instalments, dynamic descriptor and mobile payment solutions. The company’s html 5.0 code allows multiscreen and is as easy to implement into the store through the “plug and pay” feature. Furthermore, the company offers a fully integrated Risk Management Solution with more than 70 checks. allpago has recently become the first LATAM payment solution provider of the Merchant Risk Council (MRC).
Current clients include Art.com, Busuu.com, McAfee, Teamviewer, Twoo.com and many other leading payment or digital companies from various sectors.
Image courtesy of Naypong / FreeDigitalPhotos.net
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