Blog

Introduction

- Nequi, a digital wallet-turned-neobank owned by Grupo Bancolombia, stands as the leading mobile payments platform in Colombia, with 18 million users, of which 13 million actively transact at least once a month. Serving a diverse and growing user base, Nequi engages 62% of informal workers and employees, followed by students with 29%. It also empowers entrepreneurs and local businesses to grow financially through its suite of savings, credit and payment tools. With around 2.6 million active entrepreneurs and merchants on its platform, Nequi continues to play a vital role in Colombia's evolving digital economy.

- Nequi's recent growth is reflected in deposits totaling approximately $758.8 million USD, loans totaling about $17.3 million USD and fee income of approximately $17 million USD. The Nequi card user base has grown to 1.5 million, and 869 million transactions have been made with an activity rate of 72%, all contributing to a user base of over 18 million.

- Nequi is transforming Colombia's fast-growing e-commerce sector, which is projected to reach US$87 billion by 2026. With current e-commerce transactions totaling US$42.3 billion, Nequi has a 3% market share, approximately US$1.3 billion, by facilitating two-thirds of all digital wallet payments through its secure, real-time, easy-to-use mobile app. This significant role is rooted in Nequi's dedication to financial inclusion, empowering the 86% of Colombian adults who shop online by providing tools such as credit, savings and business resources to help small businesses expand their digital presence. Nequi's comprehensive approach to digital banking strengthens Colombia's e-commerce ecosystem by offering a seamless, efficient and secure payment solution, especially among young, tech-savvy shoppers.

- Businesses have adopted Nequi for its cost-effective alternative to traditional banking, reducing transaction fees and making financial transactions more affordable, especially for small and medium-sized businesses. With robust encryption and security protocols, Nequi ensures enhanced transaction security, protecting both parties. The platform's easy-to-use mobile app provides 24/7 convenience, allowing businesses to send and receive payments anytime, anywhere. Its real-time transaction confirmation feature allows businesses to verify payments instantly, providing services or goods immediately. In addition, as part of Bancolombia, Nequi benefits from the trust associated with one of Colombia's largest banks, strengthening credibility and consumer confidence.

- Nequi's upcoming plans involve two new credit options, including low-dollar consumer loans and "Propulsor," a larger loan for free investment. Its partnership with PayPal enables seamless withdrawal of PayPal balances, providing users with a simplified solution for cross-border transactions. Nequi's marketplace empowers users to manage mobile top-ups, pay bills, make donations, obtain insurance and reload transportation cards, while supporting direct sales consultants. Internationally, Nequi already operates in Colombia and Panama, with possible future expansion to other Bancolombia markets such as Guatemala and El Salvador.

What is Nequi?

Nequi is a fully digital neobank and mobile payments platform launched by Bancolombia, Colombia's largest bank by market capitalization and total assets, in 2016. It provides a comprehensive suite of financial services directly from a smartphone app, allowing users to conduct transactions such as savings, money transfers and bill payments without the need for physical bank branches. Accessible 24/7, Nequi is designed for the tech-savvy user, offering features such as instant peer-to-peer payments and digital savings goals. Its intuitive design and user-friendly interface make it a popular choice among Colombia's younger population. As a crucial part of Colombia's digital banking landscape, Nequi drives financial inclusion and modernizes banking practices in a region where traditional banking penetration is limited (40% of Colombians do not have a bank account).

‍

To make a payment with Nequi at a point of sale, consumers can use either QR code scanning or push payments, depending on what the merchant supports. Open the Nequi app on your smartphone and go to the 'Pay' section. For QR payments, select 'Pay with QR', then scan the merchant's QR code at the point of sale, confirm the amount and approve the transaction. For push payments, choose 'Send Money', enter the merchant's phone number or select from your contacts, specify the payment amount and confirm to complete the transaction. Both methods are designed for fast and secure transactions, allowing you to complete your purchase effortlessly.

‍

Nequi is at the forefront of Colombia's fast-growing e-commerce sector, which ranks third in Latin America and is projected to reach US$87 billion by 2026. With e-commerce transaction volume currently at US$42.3 billion, Nequi plays a transformative role as two-thirds of all digital wallet payments are processed through its platform. This gives Nequi a remarkable 3% share of the entire Colombian e-commerce market, which translates to around US$1.3 billion. This significant market share is achieved through Nequi's ability to provide seamless, secure and real-time bank transfers through its easy-to-use mobile application.
Nequi's transformation of e-commerce is also rooted in its dedication to financial inclusion, offering a comprehensive digital wallet service that reaches 86% of Colombian adults who shop online. By facilitating digital payments for users who may not have access to traditional banking services, Nequi enables more Colombians to participate in the e-commerce boom. Its integration with e-commerce platforms ensures seamless transactions, especially among the younger, technologically advanced demographic that researches brands on social networks.
In addition, Nequi provides additional financial tools such as savings, credit and business management resources, empowering small businesses to expand their online presence and appeal to a wider audience. The platform's convenient, secure and efficient approach to payments significantly boosts Colombia's e-commerce ecosystem, driving growth and innovation in one of Latin America's most promising markets.

‍

Why did companies adopt Nequi?

- Cost Efficiency: Nequi offers a cost-effective alternative to traditional banking transactions, which often involve higher fees. By reducing transaction costs, Nequi makes financial transactions more affordable for businesses, especially small and medium-sized businesses that are sensitive to cost structures.

- Enhanced Security: Transactions made through Nequi are secured with encryption and security protocols, reducing the risk of fraud. Users must authenticate themselves in the application, ensuring that both parties are protected during transactions.

- Convenience and Accessibility: Nequi offers an extremely user-friendly interface and operates 24/7 through a mobile app, meaning payments can be made and received anytime, anywhere with just a few taps on a smartphone. This agility and simplicity make it an attractive payment option for businesses of all sizes.

- Immediate Transaction Confirmation: Nequi provides instant transaction confirmation, which is crucial for businesses that need to verify payments in real time to provide services or products immediately.

- Trust and Brand Recognition: As part of Bancolombia, Nequi benefits from the trust and recognition associated with one of Colombia's largest and most established banks. Companies using Nequi can leverage this trust, potentially increasing their own credibility and consumer confidence in their services.

‍

What is the next step for Nequi?

- Credit: Recently, the app introduced two new financial options to support the Colombian economy. The first is a low-dollar consumer loan offering between approximately $25 and $125 USD with a repayment term of up to 30 days, designed to provide quick financial relief. The second option, known as "Propulsor," is a more substantial consumer loan for free investment, ranging from approximately $125 to $2,500 USD with a repayment period of up to 36 months, intended to support long-term projects and dreams.

- Foreign Exchange and Remittances: With the partnership between Nequi and PayPal, Nequi users can now easily and seamlessly withdraw their PayPal balances in Colombia. This partnership facilitates convenient currency exchange and remittances, providing Nequi's diverse user base with a secure and accessible way to manage international transactions. The service is especially valuable for freelancers, international businesses and families who rely on remittances for financial support, offering a simplified and reliable solution for cross-border payments.

- Marketplace: Nequi offers users access to a wide range of financial and non-financial services. Users can make mobile recharges, pay bills, make donations, purchase SOAT insurance and recharge transportation cards, guaranteeing coverage for their daily needs. The marketplace also allows direct sales consultants to interact seamlessly with their clients and affiliated companies, facilitating efficient collection and payment processes. In addition, Nequi has integrated non-financial partners, such as health and mobility services, offering a comprehensive platform to support users' daily lives.

- International Expansion: Nequi's international expansion currently includes operations in both Colombia and Panama. The company anticipates potential growth in other regions where Bancolombia operates, such as Guatemala and El Salvador, although this expansion is still a projection at this stage.

Verdict

Nequi stands as a transformative force in Colombia's digital payments ecosystem. Its comprehensive, easy-to-use approach meets the diverse needs of its 18 million users, who increasingly rely on its intuitive mobile app for secure, real-time bank transfers, credit and savings tools. Playing a key role in processing two-thirds of all digital wallet payments, Nequi controls a substantial portion of Colombia's e-commerce sector, supporting financial inclusion for the 86% of adults who shop online. As it continues to innovate and expand its services in Latin America, Nequi remains a key driver of financial accessibility and modernization, ensuring its relevance in the region's evolving financial ecosystem.

As we explore the rapid evolution of Nequi and its profound impact on Colombia's payments landscape, I invite you to join the conversation about this widely adopted payment method. How do you see Nequi shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media - let's explore the opportunities and challenges presented by Nequi and spread the word about this payment system! Share this newsletter and join the dialogue today.

If you have questions or wish to continue the discussion, feel free to contact me directly at tony@rebill.com.

Understanding the Brazilian real: a guide for beginners

In today's increasingly globalized world, understanding different currencies and their impact on international payments is vital for both individuals and businesses. One currency that has garnered significant attention in recent years is the Brazilian real (BRL). In this beginner's guide, we will delve into the intricacies of the Brazilian real and explore its role in the country's payments system.

Exploring the basics of Brazil's currency

The Brazilian real was first introduced in 1994 as part of the country's economic stabilization plan. Since then, it has become one of the most traded currencies in Latin America. The currency is symbolized by the abbreviation BRL and uses the decimal system, with one real divided into 100 cents.

As for the design of the Brazilian real, each banknote features prominent figures from Brazil's history and culture. For example, the R$100 bill shows the effigy of the famous writer Machado de Assis, while the R$50 bill pays tribute to the renowned architect Oscar Niemeyer. These banknotes serve not only as a medium of exchange, but also as a reflection of Brazil's rich heritage.

The role of the Central Bank in Brazil's monetary system

The Central Bank of Brazil is responsible for maintaining price stability and promoting the soundness and efficiency of the financial system. It implements monetary policies to control inflation, manages foreign exchange reserves and supervises financial institutions operating in Brazil.

One of the key tools used by the Central Bank to regulate the Brazilian real is the interest rate. By adjusting the interest rate, the Central Bank can influence borrowing costs, investment levels and, ultimately, overall economic activity in the country.

Unraveling the mystery: fixed or floating exchange rate?

One of the key factors influencing the value of a currency is its exchange rate. In the case of the Brazilian real, the exchange rate can be fixed or floating. Let's explore the factors that influence the exchange rate of the Brazilian real and how it can impact international payments.

Factors influencing the exchange rate of the Brazilian real

Several factors contribute to the fluctuation of the Brazilian real exchange rate. Economic indicators, such as inflation rates, interest rates and GDP growth, play a significant role in determining the value of the currency. Global economic conditions can also have a profound impact on the Brazilian real exchange rate. In addition, market sentiment can play a crucial role in determining the Brazilian real exchange rate.

Navigating currency restrictions: the affordability of the Brazilian real

When conducting international transactions involving the Brazilian real, it is essential to understand the currency restrictions imposed by the Brazilian government. These regulations seek to control capital flows and protect the stability of the currency.

Summary of foreign exchange regulations in Brazil

Individuals and companies operating in Brazil must comply with foreign exchange regulations imposed by the government. These regulations dictate procedures for converting currencies, limitations on currency transfers and reporting requirements.

Understanding foreign spending in Brazil: currency conversion explained

When visiting Brazil or conducting business in the country, understanding how currency conversion works is essential. Let's explore some tips for converting currency in Brazil to make sure you get the most out of your foreign spending.

Tips for converting currency in Brazil

When converting currency in Brazil, it is advisable to compare rates from different financial institutions to ensure the best rates. Consider using reputable exchange services that offer competitive rates and transparent charges.

Predicting the way ahead: what's in store for the Brazilian real?

To make informed decisions regarding the Brazilian real and international payments, it is important to have an understanding of the factors that may influence its future. Let's discuss some key factors that may affect the trajectory of the Brazilian real in the coming years.

Factors affecting the future of Brazil's currency

Political stability, economic reforms, commodity prices and global economic trends are some of the factors that may impact the future of the Brazilian real. Monitoring these factors can provide information on possible developments, allowing individuals and companies to make informed decisions regarding international payments involving the Brazilian real.

Navigate Brazil's financial landscape with Rebill

Ready to simplify simplify your business transactions in Brazil?

Advantages of using Rebill

• Various payment methods:
  • Cards
  • Electronic wallets
  • Bank transfers
  • Effective in more than 10 countries
• Key benefits:
  • Transparent costs: No minimum fees or hidden costs.
  • Real human support: Personalized assistance to solve any doubt.

Solutions for all your financial needs

• Revenue management: Facilitate the management of your revenue with efficient processes.
• Payments: Ensures smooth and hassle-free payments.
• Subscriptions: Manage your subscriptions with ease and precision.

Fast and efficient integration

• API and SDK friendly: Accelerate your integration with our technology solutions.

Expansion without complications

Comprehensive services: Designed to help you expand throughout the LATAM region with ease.

The Argentine market has become a key opportunity for companies looking to expand in Latin America. With a dynamic economy, a rapidly growing digital landscape and a population of more than 45 million people, this market is full of possibilities. In this overview, we explore the most important aspects of succeeding in Argentina, from trends in digital payments to the rise of e-commerce and cross-border remittance solutions.

A market in constant growth and full of opportunities

In recent years, Argentina has experienced remarkable economic growth, with an 83% increase in the value of its market, reaching $17.1 billion USD. This growth has been driven by the adoption of technology, the expansion of telecommunications and the rise of emerging sectors such as renewable energies.

While the market is dominated by key players that control 32% of market share, this presents both challenges and opportunities. Companies that are able to differentiate themselves through innovation and a strong value proposition can find a competitive space in this environment.

Accelerated growth sectors:

• Telecommunications: Local companies have led innovation with advanced technological infrastructure, enabling the expansion of digital services nationwide.
• Renewable energy: With government incentives, companies specializing in solar and wind energy are helping to drive sustainable economic growth in Argentina.

The impact of the digital payments landscape in Argentina

The payments landscape in Argentina has changed radically in the last decade, with a notable increase in the use of digital payments. This has been driven by smartphone penetration and the mass adoption of mobile wallets such as Mercado Pago and Ualá. By 2024, more than 70% of consumers in Argentina regularly use digital payment options.

For companies, it is vital to offer a variety of variety of payment methods that reflect the preferences of local consumers:

• Installment paymentsInstallment payments: Due to inflation, Argentines prefer to split their purchases in installments. Offering this option improves the customer experience and fosters loyalty.
• Cash paymentsAlthough digital payments are on the rise, cash is still a dominant option, especially for small transactions. Making sure to integrate both methods can increase the conversion rate.

E-commerce in Argentina: how to adapt to a multi-device marketplace

The e-commerce in Argentina continues to grow as more consumers shop online. The key for companies is to adapt to multiple devices and offer an optimized experience for smartphones, tablets and desktop computers.

• Smartphones: They represent the primary means of accessing online commerce. Companies must optimize their sites for mobile devices and ensure that the payment process is fast and secure.
• Tablets: Although less used than smartphones, they provide a superior visual experience, making them an ideal choice for fashion or decorative products.
• Desktop computers: Remain important for more complex transactions, such as the purchase of high-value products or those requiring more research.

Diversity in payment methods: key to success in the Argentine market

By 2024, diversity of payment methods remains a critical factor remains a critical factor for success in the Argentine market. The use of credit and debit cards has grown considerably, but alternatives such as prepaid cards and virtual wallets have also emerged.

Key factors:

• Security: Chip and PIN technology has enhanced the security of card payments, which generates more confidence among consumers.
• Financial inclusion: Prepaid cards and digital wallets are democratizing access to financial services, particularly among those without access to traditional bank accounts.

Simplifying cross-border remittances: a necessity for global businesses

With such a globalized market, the ability to manage cross-border remittances efficiently is essential. Offering fast and cost-effective solutions for international transfers allows international consumers to make frictionless payments, expanding the global reach of companies in the Argentine market.

Payment gateway optimization: how to improve customer experience

A efficient and reliable payment gateway can make the difference between a successful purchase and an abandoned cart. Companies that optimize their online payment solutions offer a better customer experience, reduce friction in the checkout process and increase conversion rates.

The importance of adapting to technological trends to succeed in Argentina

Companies operating in Argentina must be prepared to adapt quickly to technological advances and changing consumer preferences. From adopting digital payments to implementing omnichannel strategies, embracing change is critical to staying competitive.

Conclusion: key strategies to dominate the Argentine market in 2024

To succeed in Argentina, companies must be proactive in understanding and adapting to local trends, offering diverse payment options and optimizing their e-commerce operations for multiple devices. At the same time, they must be prepared to evolve with the market and respond to the unique challenges presented by this ever-changing country.

Maximize your success in Argentina with Rebill

Rebill offers you a complete solution to accept all local payment methods, including cards, digital wallets and bank transfers, in more than 10 countries in Latin America. With transparent fees and personalized support, Rebill helps you manage cross-border payments efficiently and allows you to expand your business in key markets such as Argentina. Contact us today to simplify your operations and take advantage of trade opportunities in LATAM.

Introduction to the e-commerce market in Mexico

In today's globalized world, understanding the complexities of payment methods and the e-commerce marketplace is vital for companies looking to expand their reach. In this article, we provide valuable insights into the payment methods and e-commerce landscape in Mexico, drawing on the expertise of Rebill, a leading payment platform. By exploring Mexico's growing population of online shoppers and the role of Internet penetration, businesses can gain a comprehensive understanding of the opportunities available in this market.

The potential of the Latin American market

Before diving into Mexico's payment methods and e-commerce market, it is essential to understand the immense potential of the entire Latin American region. The Latin American market is experiencing significant growth, driven by factors such as increased Internet penetration and a rising middle class. According to Statista, e-commerce in Latin America reached approximately $105 billion in 2023 and is expected to continue to grow.

E-commerce in Mexico

E-commerce growth

Mexico is one of the largest e-commerce markets in Latin America. In 2023, e-commerce in Mexico reached a value of US$30 billion, with continued growth projected. This growth is largely due to increased Internet penetration and a shift in consumer behavior towards online shopping.

Online shopper population

The number of online shoppers in Mexico continues to grow, driven by improved Internet access and the convenience of digital shopping. According to eMarketer, the number of digital shoppers in Mexico is expected to reach 60 million by 2024.

Payment methods in Mexico

Diversity of payment methods

The payment method landscape in Mexico is diverse. While credit and debit cards are widely used, it is essential to offer alternative payment options to meet the preferences of all consumers. Aside from traditional card payments, digital wallets have gained significant popularity.

Digital wallets

Digital wallets, such as PayPal, Mercado Pago and Spin by OXXO, have experienced exponential growth in Mexico. These platforms offer consumers a seamless and secure payment experience, eliminating the need to enter card details for each transaction. Businesses should prioritize the integration of popular digital wallets into their payment options to satisfy consumer preferences and drive customer satisfaction.

Cash-based payments

Despite the digitization of payments, cash remains a prevalent payment method in Mexico. Services such as OXXO Pay allow consumers to pay in cash at convenience stores, greatly facilitating e-commerce for those without access to traditional banking services.

Online Bank Transfers (SPEI)

Online bank transfers are gaining traction in Mexico as a safe and reliable payment method. Banco de México's Interbank Electronic Payments System (SPEI) allows for fast and secure transfers between bank accounts. This payment method is particularly attractive to the older generation of Mexican consumers who may be reluctant to fully embrace digital payments.

Keeping up to date on the latest developments in Mexico

In a rapidly evolving market such as Mexico, companies must keep abreast of the latest developments in payment methods and e-commerce. Monitoring industry trends allows companies to refine their strategies and align with the changing preferences of Mexican consumers. One of the key trends in Mexico's payments landscape is the rise of mobile payments. In addition, the Mexican government has been implementing initiatives to promote financial inclusion and digital payments, which benefits companies that adopt digital payment solutions.

Seamless expansion with Rebill's payment solutions

Expanding your business into Mexico requires careful planning and a comprehensive understanding of the market dynamics. Rebill provides comprehensive guidance covering all aspects of entering the Mexican market, from market research to integration of payment methods and logistics.

Ready to tap into the potential of Mexico's e-commerce market and accept all major LATAM payment methods with ease? Rebill offers a comprehensive cross-border payment gateway, allowing you to accept cards, wallets, transfers and cash in over 10 countries. Experience transparent costs with no hidden or minimal fees, and benefit from real human support every step of the way.

Ready to transform your payment processes? Contact us today to get started with Rebill.

Cross-border e-commerce has experienced significant growth in recent years, with Latin America as a key emerging market. This region offers vast potential, but also presents unique challenges that businesses must overcome to succeed. In this article, we explore the most effective tips and strategies for optimizing your cross-border ecommerce in Latin America.

Understanding the global cross-border trade landscape

Before delving into the specifics of Latin America, it is essential to understand the global trends impacting cross-border trade in 2024. International trade has grown by 27% in the last three years, according to recent studies, driven by digitalization and globalization. However, trade tensions and new tariffs, such as those between the U.S. and China, have created additional challenges for companies operating globally.

Opportunities and challenges in Latin America

Latin America, with more than 300 million Internet users, represents an unprecedented opportunity for cross-border trade. However, cultural barriers, language differences and logistics remain the main obstacles for companies seeking to penetrate this market. Recent studies show that more than 50% of Latin American consumers prefer to shop on websites that speak their language and offer local payment methods.

Key opportunities:

• Growing middle class and adoption of mobile technology.
• High demand for international products, especially in sectors such as fashion, technology and electronics.

Simplifying cross-border payments: key to success

A crucial aspect of succeeding in e-commerce in Latin America is to offer a seamless and secure payment experience. Each country has its own payment preferences, from credit cards to bank transfers and cash payments through systems such as Pix in Brazil and Mercado Pago in several countries.

To optimize your transactions:

• Integrate local payment processors that allow you to accept different payment methods, such as credit cards, digital wallets and bank transfers.
• It offers prices in local currency, which facilitates the shopping experience and increases conversion.

Logistics and supply chain optimization

Logistics is one of the biggest challenges for companies operating in cross-border ecommerce in Latin America. Shipping costs and long delivery times can lead to cart abandonment if not properly managed.

To improve logistics:

• Partner with logistics operators specialized in cross-border shipments that can optimize cost and delivery time.
• Offer options such as free shipping or flat rates to reduce friction at checkout.

Key resources for successful cross-border trade

Keeping up to date with market trends and regulatory changes is essential. In 2024, regulations around data protection and security have been tightened in many countries in the region. Use market research tools to identify consumer patterns and adapt your strategies.

Recommended resources:

• Regional market reports that provide you with insights into consumer behavior.
• Logistics partners offering expertise in international shipping, ensuring regulatory and customs compliance.

Ensuring legal compliance and security in cross-border transactions

Legal compliance and data security are paramount in e-commerce, especially when handling international transactions. In 2024, Latin America continues to make progress in regulations such as the LGPD in Brazil or the Data Protection Regulation in Argentina, which seek to guarantee the privacy of consumer data.

• Implement security certifications such as ISO 27001, which demonstrates your commitment to information protection.
• Ensure that your platform uses encryption technology to protect customer data in all transactions.

Conclusion: unlocking the potential of cross-border e-commerce

Cross-border e-commerce in Latin America presents significant opportunities for companies that are willing to adapt to the particularities of the market. Localization, simplified paymentsefficient logistics and regulatory compliance are critical factors for success in this space.

Scale your business in Latin America with Rebill

With Rebill, you can manage payments in over 10 countries in Latin America, accepting a variety of local methods and reducing friction in the payment process. Quickly integrate your platform with optimized solutions and enjoy real human support to ensure your cross-border ecommerce stays competitive.

Contact us today to take your cross-border payments strategy to the next level.

Brazil, Latin America's largest economy and home to more than 200 million people, is experiencing accelerated growth in the e-commerce sector. With increasing technology adoption and a constantly evolving digital landscape, the country offers tremendous opportunities for companies looking to expand their presence in the region. In this article, we explore the latest trends in e-commerce and payment methods in Brazil, along with consumer preferences and how companies can take advantage of this dynamic market.

E-commerce in Brazil: an opportunity in constant growth

Brazil has positioned itself as one of the most important markets for e-commerce in Latin America. The sector's growth has been driven by a growing digital economy and expanding smartphone penetration. By 2024, it is estimated that more than 60% of Brazilian consumers will shop online on a regular basis.

In addition to online shopping, Brazil is a pioneer in the adoption of new payment technologies, including contactless payment solutions, digital wallets and instant payment systems such as PIX.

Payment preferences and purchasing habits of Brazilian consumers in 2024

Brazilians have unique shopping habits and payment preferences that companies must understand to succeed in the market. Mobile shopping has gained overwhelming popularity, with more consumers using their smartphones to purchase products and services.

Main payment methods in Brazil

1. PIXPIX: The instant payment system launched by the Central Bank of Brazil in 2020 has revolutionized payments in the country. PIX allows transfers between accounts in less than 10 seconds, 24 hours a day, 7 days a week. Today, more than 70% of Brazilians use PIX for their daily transactions.
2. Digital wallets: Solutions such as Nubank, PicPay, Mercado Pago and PayPal have grown exponentially, facilitating fast and secure payments. In addition, digital wallets are compatible with contactless payments, enabled by NFC technology.
3. Boletos bancáriosBoletos, which are cash payment coupons, are still widely used in Brazil, especially for those who prefer not to use credit cards. Although it is a cash-based method, it offers flexibility to pay in physical stores and online.
4. Credit and debit cardsBrazil remains an important market for credit and debit cards, with key players such as Visa and Mastercard dominating the market. Installment payments are particularly popular, as they allow consumers to spread the cost of large purchases over several installments.

Technology and adoption of contactless payments in Brazil

Brazil has been a rapid adopter of contactless payment technologies, enabling consumers to make fast and secure transactions. The use of NFC and QR codes codes has gained ground in both online and in-store shopping. This shift has been facilitated by increased smartphone penetration and improvement in the country's digital infrastructure.

Physical store purchases continue to be relevant in Brazil

Although e-commerce is booming, purchases in physical stores continue to have a significant weight in the Brazilian retail market. Consumers tend to use credit and credit and debit cards for in-store for in-store purchases, while cash remains popular for small transactions.

Insights into Brazilian consumers' online shopping habits

Brazilian consumers deeply value support for local brands, which represents an excellent opportunity for local e-retailers. In addition, online reviews and recommendations play a crucial role in purchasing decisions. Companies that build credibility through positive reviews and customer testimonials will have a significant competitive advantage.

Key factors:

• Price sensitivity: Brazilians tend to look for deals and promotions. Offering competitive discounts and loyalty programs is essential to attract consumers and encourage customer retention.
• Trust in brands: Building trust through clear return policies, efficient customer service and fair pricing is critical to ensure success in this market.

Adapting to emerging e-commerce trends in Brazil

The adoption of mobile payments and government initiatives to promote financial inclusion are changing the e-commerce landscape in Brazil. Companies that invest in technological solutions to improve the payment experience and adapt to the needs of the Brazilian market are more likely to succeed.

Maximize your success in Brazilian e-commerce with Rebill

Rebill offers a cross-border payment solution that enables businesses to accept all popular payment methods in Brazil, including PIX, digital wallets, credit cards and boletos bancários. With transparent fees and no hidden costs, Rebill facilitates fast and efficient integration, helping businesses expand seamlessly in LATAM.

In the digital era, payment methods in Latin America have evolved dramatically, driven by technological advances and the growing demand for more secure and efficient solutions. This article analyzes the most important changes, including the decline in the use of cash, the rise of digital payments, the adoption of local payment methods and the emergence of new fintech technologies.

The changing landscape of payment methods

Payment methods have undergone a profound transformation in Latin America. Cash, which used to dominate transactions, has been losing relevance to digital options.

Digital payments: the new norm
The adoption of digital payments has been growing rapidly, thanks to factors such as increased smartphone penetration and better internet connectivity in the region. By 2024, more than 65% of consumers in Latin America regularly use digital wallets and other contactless payment methods.

Factors driving change

• E-commerce growth: E-commerce platforms have incorporated various digital payment options to facilitate transactions.
• Increased mobile connectivity: Smartphones have become essential tools for accessing financial services, with more than 80% of the population connected to mobile internet by 2024.
• Post-pandemic: The COVID-19 pandemic accelerated the preference for contactless payments, and that trend continues in 2024, with more than 70% of transactions conducted digitally in some countries in the region.

Installment payments: flexibility for consumers

Installment payments have evolved and have become a popular option. Consumers are looking for solutions that allow them to split their purchases without significantly affecting their cash flow. Platforms such as Kueski and Addi have increased their presence in Latin America, offering consumers the ability to access higher-value products without large down payments.

Local payment methods: a growing market

By 2024, local payment methods continue to gain ground in the region, adapting to consumer preferences. Companies such as Mercado Pago and Pix in Brazil are leading this shift, offering more accessible and secure solutions.

Benefits for companies:

• Increased consumer confidence in using known methods.
• Reduction of entry barriers in local markets.

Neobanks and digital wallets: the disruption continues

Neobanks such as Nubank and Ualá have transformed traditional banking, providing more accessible and affordable services. By September 2024, more than 40% of new banking customers in the region are opting for neobanks due to their ease of use and lower operating costs.

Digital wallets such as Apple Pay and Google Pay have also gained traction, allowing users to make payments with a simple tap, without the need to carry cash or physical cards. This trend continues to rise, particularly among the younger population.

Integrated finance: the future of online payments

Integrated finance is creating an ecosystem where consumers can access financial services directly on ecommerce platforms. By 2024, more than 30% of ecommerce platforms in Latin America will be offering financing, insurance and integrated payments solutions.solutions, insurance and integrated payments.

Conclusion: the future of payments in Latin America

Latin America continues to be a hotbed of innovation in payment methods. As consumers demand more flexibility and security, digital payments, neobanks and digital wallets are positioning themselves as the preferred options.

Embrace the future of payments with Rebill

Rebill is uniquely positioned to facilitate this transition. With seamless integration of all major payment methods in the region, it enables businesses to easily accept payments in more than 10 countries. Whether it's cards, wallets or transfers, Rebill offers transparent costs and real human support, helping businesses expand seamlessly.

Summary

If you have a few minutes to spare, here's what you need to know about PIX and its importance for e-commerce in the Brazilian market.

- PIX is the fastest growing real-time payment system in the world, used by more than 140 million people (approximately 80% of the adult population) and 14 million companies, according to BCB statistics as of March 2024. More than 4 billion transactions are made every month, with an average ticket of around US$88.

- PIX payment volumes surpassed debit and credit card payments for the first time in the fourth quarter of 2021, just 15 months after its launch. These volumes are now 23% higher than debit and credit cards combined.

- Person-to-business (P2B) transactions through PIX experienced substantial growth, capturing 36% of all PIX transactions and reaching a volume of US$330 billion. This marked increase underscores the widespread adoption of PIX in the commercial sector, highlighting its efficiency and the cost benefits it offers over traditional payment methods.

- Companies are convinced of the benefits of accepting Pix. Its popularity, instant funding times and significantly cheaper processing fees have led many to offer Pix as a payment method at checkout. These time and cost savings have enabled merchants to offer free shipping or attractive discounts to shoppers who pay with Pix, making it an integral part of payment and sales strategies.

- In 2023, PIX became a major force in Latin American e-commerce, securing 16% of the region's total e-commerce volume. This achievement highlights its rapid growth, overtaking debit cards as the preferred payment method among users and demonstrating its wide acceptance and effectiveness in the digital marketplace.

- Future features of PIX include PIX Automatic, which will manage recurring payments, and PIX Credit, which will enable installment payments. These enhancements are designed to increase PIX's versatility and convenience for users, further integrating it into everyday financial transactions and expanding its utility in Brazil's evolving digital economy.

What is PIX?

PIX is an instant payment system introduced by Banco Central do Brasil, Brazil's central bank, which was officially launched in November 2020. It allows users to make and receive payments in real time, 24 hours a day, 7 days a week, including weekends and holidays. The system is designed to work across all banking and financial institutions in Brazil, making it universally accessible to anyone with a bank account, whether individuals or businesses.

Payments through PIX can be initiated using multiple identifiers, such as a tax identification document (CPF or CNPJ), cell phone number, email address or a randomly generated PIX key. The system is designed to be highly secure, using end-to-end encryption to protect transaction data. PIX supports not only transfers between parties, but also bill, tax and purchase payments, among other financial transactions. It was developed to be a faster, more efficient and cost-effective alternative to traditional payment methods such as bank transfers (TED and DOC) and card payments, with the objective of increasing financial inclusion and reducing cash dependency within the Brazilian economy.

How to make a payment with PIX?

Paying with PIX is simple and easy to use. Users can scan a QR code with their smartphones or use a PIX key, such as the recipient's phone number or email address, to complete transactions. For online purchases on a computer, the process mimics physical store purchases: select PIX at checkout, scan the displayed QR code with your banking app, and confirm details before finalizing payment. Mobile shopping further simplifies this process; after selecting PIX, the device displays all supported apps, allowing users to choose one and confirm transaction details directly.

Potential for P2B payments with PIX

Fifty-four percent of Pix transactions in 2023 were person-to-person (P2P). However, person-to-business (P2B) payments with Pix are gaining momentum, gaining a 36% share of the number of transactions during 2023. P2B payments are becoming the fastest growing use case for Pix as billers and merchants realize material cost savings with Pix versus other payment methods.

In terms of transaction volume, P2B payments through Pix accounted for 12% of its total in 2023, reaching US$330 billion. This P2B payment dynamic reveals Pix's potential as an e-commerce instrument.

How PIX is transforming e-commerce in Brazil

The integration of Pix in Brazilian e-commerce is now complete, achieving 100% acceptance among the nation's 59 largest online retailers, including giants such as Amazon and Americanas. This milestone, noted by Gmattos Payments Studio, marks a significant shift from September 2022, when 18.6% of these stores had not yet adopted Pix. The transition to Pix has catalyzed a shift in payment habits, offering discounts of 5% to 20%, which has not only driven adoption, but also encouraged higher conversion rates due to its lower costs compared to other methods.

Retailers are leveraging Pix to improve cash flows and minimize shopping cart abandonment. Unlike credit card transactions, which can involve chargebacks and higher costs due to Merchant Discount Rates (MDR) and receivables assignment, Pix transactions are instant and secure, significantly reducing the risk of chargebacks and improving cash flow.

The trend toward fewer interest-free installments on credit cards in favor of discounts on immediate payments underscores a broader movement toward more transparent and economically sensible pricing models. This shift could further boost Pix's role in the market, especially with upcoming features such as Pix Automatic and installment payments, which promise to enhance the user experience and match the benefits currently exclusive to credit cards.

Finally, Pix has scaled astronomically and alone has claimed 16% of Latin America's e-commerce volume by 2023, surpassing debit cards, which until now have been the second largest payment method.

‍

Why did companies adopt PIX?

- Zero Cost to Consumers: While merchants may incur some fees, the use of PIX is free to consumers.

- Agility and Simplicity: Payments are quick and easy, simply by scanning a QR code or copying and pasting a PIX key.

- Transaction Size Flexibility: There is no upper limit on transaction sizes in PIX. This approach gives the system the flexibility to cater to a variety of users, from individual households to large corporations, who often have different transaction requirements.

- Payment Guarantee with Real-Time Confirmation: PIX ensures that funds are available almost immediately, facilitating better cash flow management for companies and confirming transaction completion to all parties.

- Enhanced Security: Because payments are made directly from the user's smartphone, PIX reduces the risk of fraud and protects sensitive financial information.

‍

What's next for PIX?

PIX Automatic / PIX Recurring: This new feature will allow PIX to handle recurring payments for SaaS services, streaming and more, greatly simplifying the process for those without credit cards who currently rely on cumbersome alternatives such as tickets and gift cards. The introduction of PIX recurring payments has the potential to significantly increase adoption in Brazil, leveraging one of the most robust subscription economies in the world.

PIX credit for installment payments: Paying for purchases in installments is a popular practice in Brazil, with up to 50% of online credit card purchases made in this way. The Central Bank's inclusion of PIX installment payments could expand this option to more consumers, especially since only 36% of Brazilian adults have credit cards. Currently, some financial institutions offer PIX installment payments, but these are handled internally without regulation by the Central Bank, a situation that could change in the future.

PIX international: PIX international would enable cross-border payments with currency conversion. Brazil's central bank is exploring agreements to connect PIX with platforms around the world. Italy has already expressed interest in a bilateral agreement with PIX. Five Asian countries are already testing the platform for instant cross-border transactions.

Verdict

PIX has emerged as the leading force in Brazil's payments market, reaching unprecedented levels of relevance and adoption. Although recent trends toward interest-free installments on credit cards have slightly diminished PIX's usage, it remains well positioned for a strong comeback. By introducing new features and expanding into additional markets, PIX is poised to maintain its pivotal role in the financial landscape.

As I explore the rapid evolution of Pix and its profound impact on Brazil's payments landscape, I invite you to join the conversation about this transformative financial technology. How do you see Pix shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media - let's explore the opportunities and challenges Pix presents and spread the word about this innovative payment system! Share this newsletter and join the dialogue today.

If you have questions or wish to continue the discussion, feel free to contact me directly at tony@rebill.com.

If you missed the last one about PIX and its impact on the Brazilian e-commerce market, check it out here.

Summary

If you have a few minutes to spare, here's what you need to know about OXXO Pay and its importance for e-commerce in the Mexican market.

• OXXO Pay is one of the most popular payment methods in Mexico, accounting for 10% of the market's online transactions (i.e., a total payment volume of $6 billion). It enables customers to pay bills and make in-store online purchases with cash. OXXO Pay has a low risk of fraud or unrecognized payments because the customer must make the payment in person.
• Mexico remains a cash-based economy. Of the $476 billion transacted in e-commerce and face-to-face retail payments in 2022, $315 billion (66%) was cash, while another $127 billion (27%) was cards, and only $34 billion (7%) was in the form of digital payments. Therefore, to remain competitive, international merchants must add cash payments to their strategies to reach Mexican shoppers.
• OXXO Pay is revolutionizing finance for those who find traditional banking costly, inconvenient or intimidating. Its success is due to OXXO's extensive network and a deep understanding of customer preferences and needs, combining convenience with a customer-centric approach. Since its launch, millions of Mexican consumers have turned to their nearest OXXO to make cash payments for more than 5,000 digital services, including Amazon, Netflix, Spotify and Fortnite V-Bucks.
• Businesses have adopted OXXO Pay to access Mexico's significant unbanked market, benefit from the security and simplicity of cash transactions, and take advantage of the 24/7 availability of OXXO stores, along with real-time payment confirmation and OXXO's strong brand association, enhancing consumer confidence and transaction reliability.
• Building on its success, OXXO Pay is expanding with the introduction of Spin by OXXO, the fastest growing digital wallet and debit card in Latin America, while planning to extend its market reach to other Latin American countries and explore partnerships in the gig economy to enhance its service offerings and consolidate its position as a key player in the Latin American financial landscape.

What is OXXO Pay?

OXXO Pay is a coupon-based payment method introduced by OXXO, the largest convenience store chain in Latin America with more than 20,000 store locations owned by the FEMSA conglomerate, Mexico's fourth most valuable company by market capitalization ($42.4 billion), in partnership with Conekta, a Mexican payment service provider, which was officially launched in February 2017. It allows users to make cash payments for online purchases by generating a unique code that can be scanned at any OXXO store. It operates 24 hours a day, mirroring the convenience store's operating hours, to provide an accessible, secure and simple payment method. This caters to the substantial segment of the population that does not have access to bank accounts (52.8% remain unbanked as of today), nor access to credit (7.7% own a credit card as of today).

How to make a payment with OXXO Pay?

To pay for online purchases using OXXO, consumers simply select OXXO as a payment option at checkout on any e-commerce site that offers it. This action generates a unique payment coupon for the transaction, complete with a barcode detailing the purchase, which can be printed or saved to a mobile device. Consumers then visit their local OXXO store, present the coupon to the cashier and pay the amount in cash. If they prefer a digital approach, OXXO's e-wallet app facilitates payments by scanning a QR code on the store's device. After consumers have paid, the merchant receives a confirmation from OXXO, usually within one business day, indicating that the order can be processed and shipped.

‍

How OXXO Pay is transforming e-commerce in Mexico

OXXO Pay is making online shopping accessible to the vast segment of the population that does not have access to traditional banking services or prefers cash transactions. As the e-commerce market in Mexico continues to expand rapidly, projected to grow from US$74 billion in 2023 to US$176.8 billion by 2026, OXXO Pay is playing a pivotal role in enabling those without traditional banking services to participate in online shopping. This payment method bridges the gap between digital commerce and physical cash transactions by allowing customers to use cash for online purchases at any of OXXO's many locations. This integration helps mitigate the limitations imposed by the lack of banking infrastructure and access to credit, which affects nearly two-thirds of the Mexican population.

By providing a secure and simple payment alternative, OXXO Pay not only increases consumer confidence in online transactions, but also supports the broader adoption of e-commerce across diverse demographics. Its widespread acceptance and ease of use encourage more consumers to shop online, thereby expanding the customer base for businesses and fostering a more inclusive digital economy. This approach not only leverages an existing cultural preference for cash and vouchers, but also aligns with consumer habits, enhancing e-commerce's growth potential in the changing Mexican market landscape.

‍

Why did companies adopt OXXO Pay?

‍

‍

What's next for OXXO Pay?

‍

Verdict

OXXO Pay has firmly established itself as a mainstay of Mexico's payments landscape, gaining significant traction among a broad demographic of users. Although it faces competition from emerging digital payment solutions and traditional banking methods, its unique position as a bridge between cash and digital commerce ensures its relevance. As cash remains predominant in the region, OXXO Pay is well positioned to maintain and enhance its influential role in Latin America's evolving financial ecosystem.

As we explore the rapid evolution of OXXO Pay and its profound impact on Mexico's payments landscape, I invite you to join the conversation about this widely adopted payment method. How do you see OXXO Pay shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media - let's examine the opportunities and challenges presented by OXXO Pay and spread the word about this cash-based payment system! Share this newsletter and join the dialogue today!

If you have questions or wish to continue the discussion, feel free to contact me directly at tony@rebill.com.

If you missed the last one about OXXO Pay and its impact on the e-commerce market in Mexico, check it out here.

Summary

If you have a few minutes to spare, here is what you need to know about SPEI and its importance for e-commerce in the Mexican market.

‍
- SPEI, Mexico's real-time electronic payments system that facilitates secure and instantaneous money transfers between bank accounts, is used by six out of every ten people in Mexico, facilitating more than 13.7 billion digital transactions since its launch in 2004. Initially registering only 215,634 transactions totaling US$1 billion, SPEI experienced dramatic growth, with 2023 alone witnessing more than 3.894 billion transactions valued at nearly US$31 billion. The system is predominantly used by people between the ages of 25 and 54, with the 35-54 age group accounting for 38% of usage, followed by the 25-34 age group with 28%. Usage rates for those under 25 and over 64 range between 9% and 17%, respectively.

- As a key component of Mexico's financial system, SPEI significantly enhances the e-commerce sector with its real-time processing capabilities, handling about 3% of e-commerce payment volume, approximately $2.22 billion. This integration not only provides speed and reliability in online transactions, but also offers a secure alternative to traditional payment methods by enabling direct bank transfers, thus mitigating risks such as fraud and chargebacks. As e-commerce grows, SPEI's role is expected to expand, backed by its 24/7 availability and the convenience it offers, which aligns well with the ongoing nature of online shopping and could lead to wider adoption among businesses and consumers.

- Companies have adopted SPEI for its ability to enable real-time transactions crucial to effective cash flow management and time-sensitive payments. With its flexible transaction limits, SPEI supports diverse payment needs, operates 24 hours a day, 7 days a week to enhance business operational flexibility, and is universally accessible through most major banks in Mexico. In addition, the finality of SPEI transactions eliminates the risk of chargebacks by providing a secure environment through multi-layered security measures, including advanced encryption and continuous monitoring. This security, combined with SPEI's cost efficiency and broad acceptance, significantly reinforces its adoption in a variety of sectors.

- The future of SPEI is shaped by ongoing developments, notably with the introduction of Cobro Digital (CoDi) in 2019 and Dinero Móvil (DiMo) in 2023. Despite CoDi's innovative features, such as QR codes and NFC for payments, it has had limited adoption, attracting only around 8% of the Mexican population. To address these challenges and improve user engagement, Mexico's central bank, BANXICO, launched DiMo, which simplifies transactions by enabling instant transfers using just a phone number. In its first year, DiMo is expected to significantly outperform CoDi, with projections of enrolling 5 million users and processing more than US$560 million in transactions, far exceeding initial expectations for CoDi.

What is SPEI?

Sistema de Pagos Electrónicos Interbancarios (SPEI) is a real-time electronic payment system developed by the Central Bank of Mexico, BANXICO, in 2004. It allows instant and secure funds transfers between bank accounts throughout Mexico. Accessible 24 hours a day, 7 days a week, SPEI is used for a wide range of transactions, from routine bill payments to one-time purchases. Its fast processing and robust security features make it a preferred financial tool for both individuals and businesses. As a cornerstone of Mexico's financial infrastructure, SPEI improves the efficiency and security of monetary movements. This system represents a significant step toward modernizing and simplifying financial transactions in the country, where cash is still predominant.

‍

How to make a payment with SPEI

SPEI operates similarly to other online banking systems, streamlining the payment process during online purchases. At checkout, customers can select SPEI as their payment option, which generates a receipt containing essential payment details.

‍
To use SPEI, customers need a bank account that supports Internet and/or mobile banking, as payments are debited directly from their account. Essential payment details required include the recipient's 18-digit CLABE (Clave Bancaria Estándarizada) and payment amount.
The entire payment process is handled through the user's bank. Once the transfer is completed, users receive a detailed receipt, ensuring that the transaction is transparent and secure. This setup not only simplifies payments, but also improves security and convenience for Mexican consumers.

How SPEI is transforming e-commerce in Mexico

As a major player in Mexico's financial landscape, SPEI is increasingly influencing the e-commerce sector. With its real-time processing capabilities, SPEI handles approximately 3% of Mexico's e-commerce payment volume, which equates to around $2.22 billion. This adoption underscores its growing role in facilitating online transactions where speed and reliability are crucial. For businesses, SPEI's appeal lies in its ability to provide instant payment confirmations, improving the efficiency of online sales operations and customer satisfaction by reducing the waiting time for payment authorization.

In addition, the integration of SPEI into e-commerce platforms offers a secure alternative to traditional payment methods, which can be prone to delays and security concerns. By enabling direct bank transfers, SPEI mitigates the risks associated with card payments, such as fraud and chargebacks, thus providing a safer environment for both merchants and consumers. This security feature is particularly significant in a digital landscape where trust and security concerns can influence purchasing behavior and brand loyalty.

As e-commerce continues to expand in Mexico, SPEI's role is likely to grow further, driven by its ability to adapt to the needs of a dynamic market. The 24-hour availability of the system allows businesses to operate and accept payments outside of traditional banking hours, which aligns well with the continuous nature of online commerce. This convenience is a crucial factor in enhancing the consumer shopping experience, potentially increasing the adoption of SPEI as a preferred payment method among more e-commerce businesses and shoppers in Mexico.

Why did companies adopt SPEI?

- Real-time transactions: SPEI enables the instant transfer of funds between bank accounts, which is crucial for companies that need to manage cash flow effectively and make time-sensitive payments.

- Flexible transaction limits: SPEI supports the execution of large and small value transactions in real time, giving businesses the flexibility to handle diverse payment needs without the constraints of fixed limits.
24/7 availability: The system operates 24 hours a day, 7 days a week, allowing businesses to make payments outside of normal banking hours, thus enhancing operational flexibility.

- Widespread accessibility: Because SPEI is compatible with almost all major banks in Mexico, it provides a universally accessible platform for businesses to conduct transactions within the country.

- No risk of chargebacks: SPEI transactions are final, meaning that once money is transferred, it cannot be automatically reversed. This feature is especially advantageous for businesses, as it eliminates the risk of chargebacks that are common in credit card transactions.

- Enhanced security: SPEI secures every transaction with multi-layered protections, including advanced encryption and strong authentication protocols. Continuous monitoring also protects against suspicious activity, ensuring the security of funds and user data.

- Cost efficiency: SPEI provides a cost-effective solution for transferring money, offering lower transaction fees that are attractive to both individuals and businesses. This affordability, coupled with its efficiency and security, greatly enhances its popularity and adoption in various sectors.

‍

What's next for SPEI

New initiatives: In 2019, Banxico introduced Cobro Digital (CoDi), a new instant payment system built on SPEI's infrastructure. CoDi offers functionality for payment request transactions using QR codes, near field communication (NFC) and internet messaging. Users can create a QR code that includes payment details and share it through messaging applications or the CoDi application. Despite these features, CoDi has not met its initial adoption goals and remains underutilized in Mexico (only 8% of its population has accounts). In response, Banxico launched Dinero Móvil (DiMo) in 2023, a service that simplifies instant bank transfers through SPEI using just a phone number. For its first year, BBVA Mexico anticipates enrolling 5 million users for DiMo, surpassing the total number of active CoDi users, and expects to process more than US$560 million worth of transactions, significantly more than the volume initially projected for CoDi.

Verdict

SPEI remains a key player in Mexico's payments landscape, acting as the foundation for innovations such as CoDi and DiMo, which build and expand its infrastructure. While SPEI provides the essential framework, CoDi and DiMo enhance its functionality with features tailored for modern digital transactions. This seamless integration ensures SPEI's continued relevance and adaptability in Mexico's evolving financial ecosystem. As digital payment solutions grow, SPEI's established network and role in supporting new technologies keep it vital to Mexico's shift toward more digital financial services.

As I explore the rapid evolution of SPEI and its profound impact on Mexico's payments landscape, I invite you to join the conversation about this well-adopted payment method. How do you see SPEI shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media. Let's explore the opportunities and challenges SPEI presents and spread the word about this payment system. Share this newsletter and join the dialogue today!

If you have questions or wish to continue the discussion, feel free to contact me directly at tony@rebill.com.

If you missed the last one about Nequi and its impact on Colombia's e-commerce market, check it out here.

Summary

- PSE is a rapidly expanding real-time payment method in Colombia, processing US$10 million in monthly payments (US$120 million annually) for individuals and more than 21,000 businesses. It rivals credit cards in popularity for online purchases, with only a slight 7% difference in favor of credit cards, demonstrating its substantial impact and adoption in the digital commerce landscape.

- PSE is a crucial driver in the expansion of e-commerce in Colombia, which is the third largest in Latin America. In 2023, with an e-commerce volume of US$42.3 billion and projected growth to US$87 billion by 2026, PSE handles 32% of all transactions, equivalent to US$13.53 billion. This platform supports the scalability of the digital economy and financial inclusion, offering secure and efficient payment solutions that serve a broad demographic and enhance consumer confidence, thus accelerating the adoption and growth of online shopping in Colombia.

- Companies have adopted PSE for its numerous benefits that streamline and secure commercial transactions throughout Colombia. Offering 24/7 availability, PSE enables payments outside of traditional banking hours, enhancing operational flexibility. Transactions are confirmed in real time, facilitating faster processing of orders and services. Known for its ease of use, PSE does not require separate registration; users simply select it as a payment method and authenticate through their bank's standard login, making it widely accessible as it is supported by almost all major banks in Colombia. The platform ensures robust security by leveraging the security protocols of participating banks and the ACH Colombia network, which protects user data and enhances the reliability of transactions. In addition, PSE transaction completion eliminates the risk of chargebacks, providing a significant advantage over credit card payments.

- The future of PSE is marked by the introduction of Transfiya, a new initiative launched by ACH Colombia in 2021, which signifies an evolution of the traditional PSE system towards person-to-person (P2P) payments. Beyond PSE's focus on secure online payments between consumers and businesses, Transfiya enables instant money transfers using just a cell phone number, significantly simplifying and improving the accessibility of everyday transactions. This change not only streamlines the transfer process, but also promotes greater financial inclusion by eliminating the need for detailed banking information. Transfiya has rapidly gained traction, now processing 8 million transactions per month, equivalent to US$1.2 million.

What is PSE?

PSE (which stands for Pagos Seguros en Línea) facilitates seamless transactions for Colombian consumers, allowing them to send and receive payments and make online purchases directly from their trusted banking environments. This system integrates extensive bank transfer systems with immediate payment confirmation, offering a fast and convenient solution for e-commerce. Developed by ACH Colombia, which manages automated transactions between financial institutions, PSE is backed by 20 national banks, making it a preferred choice among local consumers for its reliability and ease of use.

‍

How to make a PSE payment?

Upon selecting PSE as their payment method at checkout, shoppers are prompted to choose their bank from a list of ACH partner institutions. They are then redirected from the merchant's website to their own online banking environment. After logging in, customers review the pre-populated payment details and authorize the transaction. After payment processing, customers are returned to the merchant's website, which simultaneously receives a notification confirming the payment. This seamless process ensures a smooth and secure transaction from start to finish.

‍

How PSE is transforming e-commerce in Colombia

PSE is playing a crucial role in the expansion and transformation of the e-commerce landscape in Colombia, a country that is rapidly scaling Latin America's digital commerce. By 2023, Colombia is positioned as the third largest e-commerce market in Latin America, behind only Brazil and Mexico. With e-commerce volume reaching US$42.3 billion and a projected compound annual growth rate (CAGR) of 27% through 2026, the market is expected to soar to US$87 billion. This substantial growth underscores the increasing importance of robust and reliable online payment systems, with PSE at the forefront of this transformation.

PSE has become integral to Colombia's e-commerce sector, handling 32% of all online transactions, which equates to approximately US$13.53 billion. This significant share highlights PSE's effectiveness in providing a secure and efficient online payment gateway that aligns with the needs of consumers and businesses. By enabling direct bank transfers without the need for credit cards, PSE caters to a broader demographic, including those less inclined to use credit for online purchases. This approach not only simplifies the purchasing process, but also enhances trust and security among users, crucial factors driving the adoption of online shopping.

PSE's impact on Colombia's e-commerce market is further evidenced by its support for scaling the digital economy and fostering financial inclusion. As more consumers and businesses move to the digital realm, PSE's infrastructure offers a scalable solution that supports higher transaction volumes without compromising security. This capability is vital to sustaining growth in the e-commerce sector and encouraging more businesses to embrace digital transformations.

‍

Why did companies adopt PSE?

- 24/7 availability: The system operates 24 hours a day, allowing companies to make payments outside normal banking hours, thus improving operational flexibility.

- Real-time confirmation: Transactions through PSE are generally confirmed in real time, which is beneficial to both consumers and merchants. This immediate verification of transactions helps process orders and services more quickly.

- Ease of use: PSE is known for its convenience. Users do not need to register separately for PSE; they simply choose it as a payment option on the merchant's website and then authenticate using their bank's standard login credentials.

- Widespread accessibility: Because PSE is supported by almost all major banks in Colombia, it provides a universally accessible platform for businesses to conduct transactions within the country.

Security: The system emphasizes security to protect financial transactions, leveraging the security mechanisms of participating banks to ensure that users' financial information is not shared with third parties. In addition, information transfers are executed through the ACH Colombia transfer network, used by the most reputable banks in Colombia, which enhances the reliability and security of each transaction.

No risk of chargebacks: PSE transactions are final, meaning that once money is transferred, it cannot be automatically reversed. This feature is particularly advantageous for businesses, as it eliminates the risk of chargebacks, common in credit card transactions.

‍

What's next for PSE?

New initiative: Transfiya, launched by ACH Colombia in 2021, marks an evolution of the established PSE system by focusing on person-to-person (P2P) payments. Unlike PSE, which facilitates secure online payments between consumers and businesses, Transfiya allows people to transfer money instantly using just a cell phone number. This simplifies the process, improving accessibility and convenience for everyday transactions. While PSE requires navigating a bank's online platform for transactions, Transfiya streamlines transfers, promoting greater financial inclusion without the need for detailed banking information. The system currently processes 8 million transactions per month, equivalent to US$1.2 million.

Verdict

PSE is deeply embedded in Colombia's financial landscape, serving as a fundamental pillar of the country's digital payments infrastructure. Its widespread adoption is evidenced by its handling of 32% of all e-commerce transactions, highlighting its crucial role in a market where e-commerce is expected to grow substantially. Seamlessly integrating with almost all of Colombia's major banks and favored for its user-friendly features, such as 24/7 availability, real-time transaction confirmation and robust security measures, PSE has become a preferred choice for both businesses and consumers. The introduction of Transfiya, a peer-to-peer payment system, marks a progressive evolution of PSE, further enhancing financial inclusion and meeting the dynamic needs of modern consumers, thus consolidating its status as a crucial enabler of digital commerce in Colombia.

If you missed the last one on PSE and its impact on Colombia's e-commerce market, check it out here.

Summary

- Yape is the leading mobile payments platform in Peru, launched in 2016 by Banco de Crédito del Perú, the largest bank in the Peruvian financial system and the main subsidiary of Credicorp Ltd, the largest financial institution in the country. The platform has more than 15 million users, of which 11.5 million are monthly active users, making an average of 36 transactions per month with an average transaction size of US$23. In addition, it empowers entrepreneurs and local businesses to grow financially through its suite of credit and payment tools. With around 1 million active entrepreneurs and merchants on its platform, Yape continues to play a vital role in Peru's evolving digital economy.

- Yape is significantly transforming e-commerce in Peru by addressing key barriers and enhancing digital payment experiences. As Peru emerges as the fastest growing e-commerce market in Latin America, Yape is capitalizing on this growth with features such as Yape Tienda, which simplifies the purchase of technology products and appliances directly through the app, promoting digital inclusion. With only 54% of adults having a bank or fintech account and 60% making purchases online, Yape's easy-to-use, commission-free platform encourages more frequent transactions and increased spending. Digital wallets, including Yape, account for 11% of e-commerce payment volume and are expected to grow as consumers recognize their convenience and security. Furthermore, with 64% of e-commerce volume in Peru coming from mobile devices, Yape's mobile-first approach aligns with consumer behavior, ensuring its position at the forefront of Peru's e-commerce revolution.

- Businesses have adopted Yape for its zero cost to consumers, agility, simplicity and increased security. While merchants may incur some fees, Yape is free for consumers to use, making it an attractive payment option. Payments are quick and easy, requiring only a QR code scan or mobile number with PIN confirmation, and can be made 24 hours a day, providing operational flexibility. Yape guarantees payment with real-time confirmation, improving cash flow management and ensuring transaction completion. In addition, its direct smartphone payment method reduces the risk of fraud and protects sensitive financial information, making it a secure option for businesses.

- Yape is significantly expanding its services to meet diverse customer needs and enhance financial inclusion. The introduction of Yape Tienda enables more than 15 million users to purchase technology products and home appliances directly through the app, with plans to expand the product range to more than 250,000 items by the end of 2024. Yape Lending serves 150,000 customers with fast and easy-to-use digital loans. The platform also supports businesses, including microenterprises, by enabling virtual payments based on QR codes and handling large-scale banking transactions through a newly established business profile. In addition, Yape Remittances facilitates commission-free international remittances from up to 37 countries. Internationally, Yape reached one million users in its first month in Bolivia, with the goal of reaching three million by 2025. Credicorp envisions Yape potentially evolving into a regional neobank by 2025, building on its success in Peru and Bolivia.

What is Yape?

Yape is a mobile payments platform developed by Banco de Crédito del Perú (BCP), one of Peru's largest banks. It allows users to make instant payments and transfers using their smartphones. Yape is widely used for both personal and commercial transactions due to its convenience, speed and low fees. Users can link their bank accounts or debit cards to the application and make payments by scanning QR codes, entering phone numbers or selecting contacts from their phone. It has become a popular tool for facilitating cashless transactions in the Peruvian market.

‍

How to make a payment with Yape?

To shop online with Yape, first make sure that the "Online Shopping" option is activated in your account. Then, go to the website of the store you wish to purchase from, select Yape as your payment method and enter your phone number. Next, look for the approval code in the main menu of your Yape application. Enter the approval code to complete the payment. The maximum amount per transaction is US$534.

How Yape is transforming e-commerce in Peru

Yape is significantly transforming e-commerce in Peru by addressing key barriers and improving the overall digital payment experience. As Peru emerges as the fastest growing e-commerce market in Latin America, with an anticipated 35% compound annual growth rate (CAGR) from 2023 to 2026, Yape is capitalizing on this growth by facilitating more seamless and secure transactions. The introduction of Yape Tienda, which allows users to purchase technology products and home appliances directly through the app, is a testament to this transformation. This feature not only simplifies the purchasing process, but also promotes digital inclusion by making e-commerce more accessible to a wider audience, including those who may be traditionally unbanked.

Yape's impact on the e-commerce landscape is particularly significant given the current state of digital engagement in Peru. With only 54% of the adult population having a bank or fintech account and only 60% of adults making purchases online, there is considerable room for growth. Yape's easy-to-use platform and commission-free transactions are attracting more consumers to move from sporadic transactions to more frequent digital transactions. By providing a seamless and secure payment method, Yape is encouraging greater spending and more consistent engagement with online shopping. This is crucial in a market where the average e-commerce consumer spends approximately US$741 annually and makes up to four digital transactions per month.

In addition, Yape is addressing the prevailing trends and preferences in payment methods and device usage in e-commerce in Peru. Digital wallets, which include Yape, currently account for 11% of e-commerce payment volume, a figure that is expected to increase as more consumers recognize the convenience and security of these platforms. Furthermore, with 64% of e-commerce volume in Peru coming from purchases made on mobile devices, Yape's mobile-first approach aligns perfectly with consumer behavior. This focus on mobile accessibility not only enhances the shopping experience, but also ensures that Yape remains at the forefront of the e-commerce revolution in Peru, further driving growth and innovation in the market.

‍

‍

Why did companies adopt Yape?

- Zero cost to consumers: Although merchants may incur some fees, the use of Yape is free to consumers.

- Agility and simplicity: Payments are quick and easy, requiring only a scan of a QR code or a simple copy and paste of the cell phone number with a PIN confirmation.

- 24/7 availability: Yape operates 24 hours a day, allowing companies to make payments outside normal banking hours, thus improving operational flexibility.

- Payment guarantee with real-time confirmation: Yape ensures that funds are available almost immediately, facilitating better cash flow management for companies and confirming the completion of the transaction to all parties.

- Increased security: Because payments are made directly from the user's smartphone, Yape reduces the risk of fraud and protects sensitive financial information.

‍

What's next for Yape?

- Marketplace: Yape has introduced Yape Tienda, a new feature that allows its more than 15 million users to purchase technology products and home appliances directly through the app and have them delivered to their homes. Yape Tienda's goal is to become the favorite online store for Peruvians by offering a wide range of products, a safe and easy shopping experience, fast deliveries and exceptional customer service. Currently, Yape Tienda offers more than 2,000 technology and home appliance products, with plans to expand to more than 250,000 products by the end of 2024. Users can access Yape Tienda through the app menu, browse the catalog, add items to their cart and complete purchases using Yape for payment, which includes product and shipping costs. After purchase, users receive a confirmation email with order details and delivery date, with shipping available in Lima and other provinces.

- Lending: Yape Lending serves 150,000 customers who engage in digital transactions primarily for consumer purposes, emphasizing simplicity, easy-to-use applications, and speed. The average loan amount is approximately US$67. The platform enhances consumer risk models with Yape's transactional data, and the collection process is fully digital, ensuring efficiency and convenience for users.

- Yape Business: Any company, including microenterprises, can generate a QR code for virtual payments, an option implemented by the corporate initiative Bodega Digital in Lima and Callao. In 2024, a business profile option was established to handle large-scale banking operations (more than 25,000 soles per month) in exchange for a 2.95% commission on monthly revenues. This commission applies to sales over ten soles and is only charged to the business owner with the enabled profile. In addition, the platform supports point-of-service payments for products consumed in corporate franchises. In addition to physical QR codes, the app was expanded to include online payments through Págalo.pe and Joinnus, requiring an approval code generated by the user's account, separate from the password.

- Remittances: Yape has introduced "Yape Remittances," a new feature that allows users to receive dollar remittances from up to 37 countries, with the goal of improving the speed and security of international funds transfers. Yape Remittances offers commission-free transactions, providing a cost-effective solution for both senders and recipients. In addition, users can exchange dollars within the app, enhancing convenience. By partnering with seven international transfer agencies, Yape simplifies the process, eliminating long lines and improving the user experience.

- Internationalization: Yape grew rapidly to one million users in its first month in Bolivia, achieving more than 6.5 million transactions, and aims to exceed three million users by 2025, promoting financial inclusion with its easy-to-use, commission-free platform.

- Neobanco: Credicorp does not rule out the possibility that its digital wallet Yape could evolve into a regional neobank by 2025, following the success the product has achieved in Peru and its expansion in Bolivia.

‍

Verdict

Yape stands as a transformative force in Peru's digital payments ecosystem. Its comprehensive and easy-to-use approach meets the diverse needs of its 15 million users, who increasingly rely on its intuitive mobile app for secure, real-time payments, credit and remittances. Playing a crucial role in processing a relevant portion of all payments made with digital wallets (estimated at US$1.7 billion), Yape commands a substantial share of Peru's e-commerce sector, supporting financial inclusion for the 60% of adults who shop online. As it continues to innovate and expand its services across Latin America, Yape remains a key driver of financial accessibility and modernization, ensuring its relevance in the region's evolving financial ecosystem.

As I explore Yape's rapid evolution and its profound impact on Peru's payments landscape, I invite you to join the conversation about this widely adopted payment method. How do you see Yape shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media. Let's explore together the opportunities and challenges Yape presents and spread the word about this payment system - share this newsletter and join the dialogue today!

If you have questions or wish to continue the discussion, feel free to contact me directly at tony@rebill.com.

If you missed the last one on Yape and its impact on Peru's e-commerce market, check it out here.

Summary

- PagoEfectivo is one of the most popular payment methods in Peru, accounting for 19% of the market's online transactions (i.e., $4.75 billion in total payment volume). It allows customers to pay bills and make online purchases in physical stores with cash. PagoEfectivo has a low risk of fraud or unrecognized payments because the customer must make the payment in person.

‍
- Peru remains a cash-based economy. Of the $40.5 billion transacted in face-to-face retail and e-commerce payments in 2023, $19 billion (47%) was in cash, while another $16.75 billion (41%) was with cards, and only $4.75 billion (12%) was in the form of digital payments. Therefore, to remain competitive, international merchants must include cash payments in their strategies to reach Peruvian shoppers.

‍
- PagoEfectivo is transforming e-commerce in Peru by providing a crucial payment solution for the unbanked and underbanked populations, leveraging the rapid growth of e-commerce in Peru (projected CAGR of 35% from 2023 to 2026) and serving a market where only 54% have bank accounts and 60% shop online. Its secure and accessible cash payment method meets the needs of Peruvian online shoppers, who spend an average of US$741 per year and primarily use mobile devices for transactions. This strategy not only enhances the e-commerce experience, but also supports the sector's expansion from US$25 billion in 2023 to a forecast US$63 billion by 2026.

‍
- Businesses have adopted PagoEfectivo to access Peru's substantial underbanked market, benefit from the security and simplicity of cash transactions, and take advantage of an extensive network of payment points, along with real-time payment confirmation, which increases consumer confidence and transaction reliability.
Building on its success in Peru, PagoEfectivo has expanded into Argentina, leveraging similar economic profiles and consumer behaviors to enhance market penetration and foster financial inclusion across Latin America, consolidating its position as a key player in the region's digital payments landscape.

What is PagoEfectivo?

PagoEfectivo is a voucher-based payment method that provides an alternative to credit and debit cards for online transactions. Launched in 2009, it was a subsidiary of Grupo El Comercio, Peru's largest media conglomerate, until 2021 when it was acquired by Paysafe for US$108 million. It is widely used in Latin America, particularly in Peru, allowing consumers to make secure payments using cash. The platform generates a unique payment code (CIP - Código de Pago) for each transaction, which can be paid at various physical locations such as banks, convenience stores and authorized payment points. This method is especially beneficial for the unbanked, who make up 46% of the Peruvian population.

How to make a payment with PagoEfectivo?

To make a payment with PagoEfectivo, select this payment method at checkout, generate a unique payment code (CIP) and choose a payment location from its network of banks, convenience stores and authorized points. Visit the chosen location with your payment code (printed or on your mobile device), and present it to the cashier or enter it at a self-service kiosk to pay the amount in cash. Once payment is made, you will receive a confirmation receipt and the merchant will be notified in real time to process your order. This method offers a secure and convenient way to pay for online purchases without the need for a bank account or credit card.

How PagoEfectivo is transforming e-commerce in Peru

- PagoEfectivo is playing a transformative role in Peru's fast-growing e-commerce market. As the fastest growing e-commerce market in Latin America, Peru's online retail sector is forecast to have a robust 35% CAGR from 2023 to 2026, with market volume expected to grow from US$25 billion in 2023 to US$63 billion by 2026. Despite these impressive numbers, there remains significant room for growth, particularly as only 54% of the adult population has a bank or fintech account, and only 60% of adults currently make purchases online. With online shopping representing only 8% of total retail sales, the potential for expansion is substantial, and CashPay is at the forefront of facilitating this growth by providing a crucial payment solution for the unbanked and underbanked populations.

‍
- Profiling the typical Peruvian online shopper reveals key insights that highlight the importance of PagoEfectivo's role. On average, Peruvian e-commerce consumers spend US$741 annually, with an average transaction ticket of US$60. The market is characterized by sporadic shoppers, with 64% of online consumers making up to four digital transactions per month. The main demographic group driving online purchases is in the 25-34 age range, representing 43% of online shoppers. PagoEfectivo caters to these consumers by offering a secure and accessible payment method that does not require a bank account or credit card, thus facilitating their participation in e-commerce activities.

‍
- The impact of PagoEfectivo is further highlighted by preferred payment methods and device usage trends in Peru. In 2023, debit cards accounted for 45% of e-commerce payments, followed by cash vouchers such as PagoEfectivo with 19% (US$4.75 billion). This significant share demonstrates the crucial role cash payment solutions play in the market. Furthermore, with 64% of e-commerce transactions conducted via mobile devices, CashPay's user-friendly platform is well suited to meet the needs of this mobile-centric consumer base. By providing a reliable and convenient payment option, PagoEfectivo not only enhances the e-commerce experience for Peruvian consumers, but also supports the continued growth and evolution of the market.

‍

‍

Why did companies adopt CashPay?

- Cash-dominated economy: They access a significant segment of the market that does not use traditional banking services in Peru, is underbanked and has limited or no access to credit cards.

- Transaction security: Payments made through PagoEfectivo have a low risk of fraud or non-recognition because the customer must make the payment in cash, in person, at one of the authorized payment locations.

Agility, simplicity and availability: Payments are quick and easy, requiring only the generation of a unique payment code (CIP). With a wide network of payment points including banks and convenience stores, consumers can make payments conveniently.

Real-time confirmation: PagoEfectivo guarantees immediate verification of funds, ensuring fast completion of the transaction for all parties involved.

What's next for CashPay?

Expansion into new markets: Building on its established success in Peru, PagoEfectivo expanded its services to Argentina. By tapping into this market, which shares similar economic profiles and consumer behaviors, PagoEfectivo capitalized on its recognized brand identity to facilitate market penetration and foster financial inclusion throughout Latin America. This strategic move could significantly enhance PagoEfectivo's influence in the region's digital payments landscape.

Verdict

PagoEfectivo has firmly established itself as a pillar of the payments landscape in Peru, gaining significant traction among a diverse demographic of users. Although it faces competition from emerging digital payment solutions and traditional banking methods, its unique position as a bridge between cash and digital commerce ensures its relevance. Given that Peru remains a cash-based economy, PagoEfectivo is well positioned to sustain and enhance its influential role in Latin America's evolving financial ecosystem, especially with its recent expansion into Argentina and continued focus on financial inclusion.

As I explore the rapid evolution of PagoEfectivo and its profound impact on the payments landscape in Peru, I invite you to join the conversation about this well-adopted payment method. How do you see PagoEfectivo shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media - let's explore the opportunities and challenges presented by PagoEfectivo and spread the word about this payment system! Share this newsletter and join the dialogue today.

If you have questions or would like to continue the discussion, please feel free to contact me directly at tony@rebill.com.

Summary

• Boleto Bancario is a cash payment method regulated by the Brazilian Federation of Banks (FEBRABAN), launched in 1993. It works like a voucher or bank bill, where merchants generate a Boleto containing a barcode and payment details. Consumers can pay for these Boletos at banks, lottery agencies, supermarkets, post offices or through online banking platforms. This method is especially beneficial for individuals without credit cards or traditional bank accounts, allowing them to securely participate in the digital economy.
• Companies have adopted Boleto Bancario because of its accessibility to consumers without credit cards or bank accounts, the elimination of chargebacks, its wide acceptance in various sectors and the trust it has gained among Brazilian consumers. This payment method offers a secure way to complete transactions, minimizing the risk of fraud and ensuring that payments, once made, are irreversible.
• Boleto Bancario is transforming e-commerce in Brazil by contributing significantly to its rapid growth and expansion. It supports 57% of Brazil's dominance in Latin American e-commerce sales by providing an inclusive and secure payment option. The popularity of this method, which accounts for 10% of e-commerce payment volume (US$27.5 billion), helps drive participation among a broader segment of the population. This inclusivity and the extensive use of mobile devices for e-commerce underscore Boleto's role in facilitating secure and simple transactions, increasing consumer confidence and supporting Brazil's vibrant digital economy.
• Looking ahead, Boleto Bancario will improve its efficiency and relevance through digital integration with online and mobile banking platforms. This will allow users to generate and pay Boletos directly through banking applications, improving convenience and reducing the need for physical visits. This shift supports financial inclusion and accessibility, enabling unbanked and underbanked populations to participate in the digital economy. These advances ensure that Boleto Bancario remains a vital and competitive payment method in Brazil's evolving financial landscape.

What is Boleto?

‍Boleto Bancario is a Brazilian payment method regulated by the Brazilian Federation of Banks (FEBRABAN) and widely used in various sectors for both online and offline transactions. Launched in 1993, it operates similarly to a bank voucher or invoice. Merchants generate a Boleto containing a barcode and all relevant payment details, which consumers can pay for at banks, lottery agencies, supermarkets, post offices and via online banking platforms. This system is particularly beneficial for individuals without access to credit cards or traditional bank accounts, allowing them to participate in the digital economy in a safe and convenient way (9.2% remain unbanked).

The Boleto Bancario system is known for its inclusiveness and security. It is a preferred payment method among Brazilian consumers who do not wish to use credit cards due to concerns about fraud and overspending. Once a Boleto is paid, the transaction is irreversible, eliminating the risk of chargebacks for merchants. Typically, payment confirmation takes 1-3 business days, making it a reliable but slightly slower option compared to instant payment methods such as PIX. Despite this, its wide reach and acceptance make it an integral part of Brazil's financial landscape, supporting a significant portion of the population in managing their financial transactions.

‍

How to make a payment with Boleto

‍Tomake a Boleto Bancário payment in an online checkout, first select Boleto Bancário as your payment method. The system will generate a Boleto voucher containing a barcode, payment amount, due date and transaction details. Download or print the Boleto. You can pay in several ways: log in to your online banking account and enter the Boleto barcode number in the bill payment section, use a mobile banking app to scan the barcode, or pay in person at authorized locations such as banks, lottery agencies, supermarkets, post offices or convenience stores. Once paid, the transaction generally takes 1 to 3 business days to process and confirm.

How Boleto is transforming e-commerce in Brazil

‍BoletoBancário is significantly transforming e-commerce in Brazil, playing a vital role in its rapid growth and expansion. With Brazil dominating 57% of e-commerce sales in Latin America, Boleto Bancário has become an essential payment method, especially for consumers who do not have access to credit cards or traditional banking services. As an inclusive and accessible payment option, Boleto enables a broader segment of the population to participate in online shopping, thus driving e-commerce participation. The ease of use and security of the method are particularly attractive to Brazilian shoppers, who appreciate the ability to complete transactions without the risks associated with credit card or debt fraud.

E-commerce in Brazil has seen remarkable growth, with a projected volume of US$457 billion by 2026 and a compound annual growth rate (CAGR) of 18% from 2023 to 2026. This impressive growth is supported by the popularity of Boleto Bancário, which makes up 10% of e-commerce payment volume in the country. As e-commerce penetration reaches 90% among the adult population, Boleto Bancário remains a preferred option for many, particularly those in the 36-50 age range, who represent a significant portion of online shoppers. This demographic, combined with the extensive use of mobile devices for e-commerce (accounting for 70% of volume), highlights Boleto's role in facilitating secure and simple transactions in an increasingly digital marketplace.

In addition, Boleto Bancário's impact is also seen in its geographic reach within Brazil. The Southeast region, which leads in online sales with a 56% share, benefits greatly from Boleto's wide acceptance. Similarly, other regions such as the Northeast, South, Midwest and North also show substantial e-commerce activity, driven by the availability of Boleto as a payment method. By providing a reliable and secure way to pay for goods and services, Boleto Bancário not only supports the current e-commerce infrastructure, but also fosters further growth and inclusiveness in Brazil's vibrant digital economy.

‍

‍

Why did companies adopt the Boleto?

• Accessibility: Boleto Bancário allows consumers who do not have credit cards or bank accounts to make online purchases.
• No chargebacks: Since payment is in cash, there are no chargebacks for merchants, reducing the risk of fraud.
• Wide acceptance: It is widely accepted in various sectors, including e-commerce, utilities, insurance and education.
• Consumer confidence: Many Brazilian consumers trust Boletos because of its long-standing presence and the security associated with bank-regulated payments.

What's next for Boleto?

• Digital integration: As digital banking and fintech solutions continue to evolve, Boleto Bancário is integrating more seamlessly with online and mobile banking platforms. This integration allows users to generate and pay Boletos directly through their banking apps, improving convenience and reducing the need for physical visits to payment locations. This shift towards digital payments supports the overall trend of financial inclusion and accessibility.

Verdict

‍BoletoBancário stands as a transformative force in Brazil's financial ecosystem. Launched in 1993, it has become a widely accepted payment method in various sectors, driven by its accessibility to consumers without credit cards or traditional bank accounts. This method significantly boosts financial inclusion, enabling broader participation in Brazil's digital economy. Businesses adopt Boleto Bancário because of its secure cash transactions, elimination of chargebacks and the trust it has gained among consumers. It supports Brazil's dominance of 57% of e-commerce sales in Latin America, contributing to a projected e-commerce volume of US$457 billion by 2026. Looking ahead, Boleto Bancário will improve its efficiency and relevance through seamless digital integration with online and mobile banking platforms, allowing users to generate and pay Boletos directly through banking apps. This change increases convenience and supports financial inclusion, positioning Boleto Bancário as a vital and competitive payment method in Brazil's evolving financial landscape.

As I explore the rapid evolution of Boleto and its profound impact on Brazil's payments landscape, I invite you to join the conversation about this widely adopted payment method. How do you see Boleto shaping the future of e-commerce and beyond? Share your thoughts and experiences with me on social media. Let's explore the opportunities and challenges Boleto presents and spread the word about this payment system.

Share this newsletter and join the dialogue today! If you have questions or would like to continue the discussion, feel free to contact me directly at tony@rebill.com.

The traditional reign of cards

For decades, credit and credit and debit cards have been the cornerstone of payments in Latin America. Credit cards still dominate with an impressive 48% market share, processing a transaction volume of $240 billion. Giants such as Visa, Mastercard and American Express have long been synonymous with reliable and widely accepted payment options throughout the region.

Debit cards, although less dominant, play a crucial role in financial inclusion and serve as a bridge between cash and digital payments. With a 10% market share and $50 billion in volume, they remain a significant player in the payments ecosystem.

The rise of alternative payment methods

However, the winds of change are blowing strongly. APMs are rapidly gaining ground, challenging the status quo:

1. Instant Payment Systems: Leading the Charge is PIX from Banco Central do Brasil, a revolutionary that has captured 16% of the market with $80 billion in transaction volume. Its astronomical growth and potential for regional expansion is reshaping the payments landscape.
2. Digital wallets: With a market share of 9% and a volume of $45 billion, players such as Mercado Pago, Ualá, MODO , Yape y Nequi not only facilitate transactions, but also drive financial inclusion and offer value-added services that traditional cards cannot match.
3. Cash vouchers: In spite of the digital revolution, cash-based systems such as OXXO Pay from FEMSA, Boleto Bancario, PagoEfectivo, A Paysafe Company and Efecty maintain a strong 9% market share ($45 billion in volume), serving as a vital lifeline for unbanked populations.
4. Bank transfers: Although smaller, with a market share of 5% ($25 billion in volume), systems such as SPEI of Banco de México, PSE from ACH Colombia Oficial, Khipu and BROU remain crucial for high-value transactions in markets with strong traditional banking sectors.

‍

The transition to a multi-rail environment

The diversification of payment methods in Latin America represents a fundamental transformation in the way consumers and businesses approach financial transactions. This shift to a multi-rail environment is driven by several key factors:

Consumer demand for simplicity and flexibility

Latin American consumers are increasingly looking for payment solutions that offer ease of use and adaptability. This demand is driving the rise of digital wallets and instant payment systems that simplify transactions across platforms and contexts.

The "P2P-ification" of payments

Peer-to-peer (P2P) functionality has become a cornerstone of modern payment systems in the region. Solutions such as PIX in Brazil and Yape in Peru have made P2P transfers so seamless that they are redefining expectations for all types of financial interactions.

Financial inclusion

Alternative payment methods (APMs) play a crucial role in bringing financial services to the unbanked and underbanked populations. For example, cash-based systems such as OXXO in Mexico continue to bridge the gap between digital commerce and traditional cash transactions.

Mobile approach

With a significant portion of e-commerce transactions occurring on mobile devices (69% in Argentina, 64% in Peru), payment solutions optimized for smartphones are gaining rapid adoption.

Real-time payments

The success of instant payment systems such as PIX in Brazil and PSE in Colombia demonstrates a strong preference for real-time transactions, putting pressure on traditional payment methods to evolve.

The numbers tell a compelling story of this change:

• Credit cards have seen their market share erode from 55% in 2018 to 48% in 2023, indicating a clear movement away from traditional payment methods.
• Alternative payment methods are projected to grow at impressive rates from 2023 to 2026: Bank transfers: 38% CAGR, PIX (Brazil): 26% CAGR, Digital wallets: 20% CAGR, and Cash vouchers: 15% CAGR.

The rise of multi-rail platforms is inevitable as consumers and businesses seek to leverage the strengths of multiple payment methods. These platforms integrate traditional banking services with innovative fintech solutions, offering a full suite of options that meet diverse needs and preferences.

Country-specific trends

This change is not uniform across the region. Each country has its own unique dynamics:

Brazil

The PIX revolution has redefined instant payments, setting a benchmark for the region. As the fastest growing real-time payment method in the world, PIX processed a staggering $80 billion in Brazil alone by 2023, capturing 16% of Latin America's total e-commerce volume. With more than 140 million users (about 65% of Brazil's adult population), PIX has become an integral part of Brazil's financial ecosystem, surpassing debit and credit card volumes combined.

Mexico

OXXO' s vast network demonstrates the enduring power of cash-based systems to drive financial inclusion. OXXO Pay accounts for 10% of Mexico's online transactions, processing approximately $6 billion in total payment volume. In a country where 66% of retail payments are still made in cash, OXXO Pay bridges the gap between digital commerce and physical cash transactions, enabling e-commerce participation for the unbanked population.

Colombia

The rapid adoption of digital wallets is transforming the payments landscape. Nequi, a digital wallet-turned-neobank, is leading the charge with 18 million users and 13 million active monthly transactions. It commands 3% of Colombia's total e-commerce market, processing around $1.3 billion. In addition, PSE, a real-time payment method, handles 32% of all online transactions, totaling $13.53 billion, showing the country's rapid transition to digital payments.

Argentina

The "QR-ification" of payments is revolutionizing Argentina's financial landscape. In the $28 billion e-commerce sector, Mercado Pago is leading the charge, with digital wallets accounting for 23% of payment volumes. As a pioneer of QR code payments since 2015, Mercado Pago has made smartphone-based transactions commonplace. Complementing this, MODO, a collaborative effort of more than 30 banks launched in 2020, has rapidly gained 12 million users and 500,000 merchants. With both platforms driving QR-based transactions, Argentina is seeing a rapid transition to cashless payments in the online and offline spaces.

Peru

The fastest growing e-commerce market in Latin America is being transformed by Yape, the country's leading mobile payments platform. With more than 15 million users and 11.5 million monthly active users, Yape processes a total payment volume of $13.39 billion annually. As digital wallets account for 11% of e-commerce payment volume, Yape is at the forefront, addressing key barriers in a country where only 54% of adults have a bank or fintech account. Its easy-to-use, commission-free platform aligns perfectly with Peru's mobile focus, where 64% of e-commerce volume comes from mobile devices.

The future of payments in Latin America

As we look to the future, the growth trajectory of APMs shows no signs of slowing down. Traditional card networks are not sitting idly by: they are innovating and adapting to stay relevant. The future will likely contain a mix of competition and collaboration between cards and APMs, ultimately benefiting Latin American consumers with more choice and better services.

In conclusion, the $500 billion dispute between cards and APMs in Latin America is far from over. This dynamic shift to a multi-rail environment is not only changing the way transactions are processed, but is also revolutionizing financial inclusion, the growth of e-commerce and the very nature of money in the region.

As e-commerce grows in Argentina, understanding the payment methods preferred by consumers becomes essential for any company that wants to expand its business in this market. Argentina has particularities in terms of its payment options, from credit cards to digital wallets and cash cash payments. In addition, the possibility of to pay in installments is essential for most consumers.

In this article, we show you the most popular payment methods in Argentina and how Rebill can help you integrate them efficiently into your e-commerce platform.

What are the most used payment methods in Argentina?

Credit cards

Credit cards continue to be one of the most dominant payment methods in Argentina, especially in e-commerce. They represent approximately 35% of online transactions. The main credit cards in the country are:

• Visa
• Mastercard
• American Express

Argentine consumers tend to prefer credit cards because of the possibility of paying in interest-free installments, a very common practice in the country. This option allows customers to divide the total cost of a purchase into several monthly payments, which facilitates access to higher-value products.

Digital wallets

The use of digital wallets has grown exponentially in Argentina. In 2023, these wallets accounted for 31% of the value of e-commerce transactions, and that figure is expected to grow to 44% by 2027. The most popular wallets include:

• Mercado Pago: Mercado Libre 's payment platform dominates the market, both in online payments and in physical stores through QR codes.
• MODO: Driven by the main banks in the country, it allows centralizing all debit and credit cards in a single application.
• Ualá: Offers a prepaid card and a digital wallet, ideal for those looking to control their spending without using a traditional credit card.

Digital wallets also allow users to make fast, contactless payments, which has led to their mass adoption.

Debit cards

Debit cards account for approximately 18% of ecommerce transactions in Argentina. These cards are widely used for everyday purchases and are favored by those looking to avoid accumulating debt.

Local banks often offer special promotions, such as discounts and refunds, which has increased their use. For businesses, offering debit card payments is a sure way to capture a wider audience, including both young people and those who prefer to avoid using credit.

4. Cash payments

Although the use of cash has decreased with digitalization, it is still a relevant option, especially in rural areas and for unbanked consumers. Companies such as Pago Fácil and Rapipago allow customers to make purchases online and pay for them in cash at physical locations. This method remains popular among those who prefer not to use digital means.

5. Prepaid cards

The use of prepaid cards is booming, especially among young people and those seeking greater control over their spending. Platforms such as Ualá and Naranja X have popularized this option. Prepaid cards offer additional security, as they are not linked to a bank account, which makes them ideal for online purchases.

The role of installment payments in Argentina

One of the most unique and relevant aspects of the payment system in Argentina is the possibility of paying in interest-free installments. This option allows consumers to finance their purchases by dividing the total payment in several months without additional costs. It is especially common for higher-value purchases, such as appliances, technology and travel.

Special features of installment payments

In Argentina, it is not uncommon for consumers to use more than one credit card to finance a single purchase. This practice allows them to spread the payment across multiple cards to take advantage of each card's credit limits or to better manage their budget. Therefore, it is critical that payment platforms offer the option to process payments with multiple cards in a single transaction.

Advantages of offering installment payments:

• Higher average ticket: Consumers tend to spend more when they have the option of financing their purchases in installments.
• Improved conversion: By lowering payment barriers, fees incentivize users to complete their purchases.

How does Rebill facilitate payments in Argentina?

Rebill offers a complete solution for managing recurring and cross-border payments in Argentina. Our platform allows companies to accept the most popular payment methods in the country, such as credit cards, debit cards, digital wallets and cash payments, facilitating the expansion of your business without the need for local infrastructure.

Advantages of using Rebill:

• Agile integration: Accepts multiple payment methods and offers the possibility of splitting payments among several cards.
• Recurring payments: Ideal for companies that operate with subscriptions, allowing the automation of monthly collections.
• Compliance: We ensure that all transactions comply with local data protection and security regulations.

Conclusion

If your company wants to expand in Argentina, it is essential to offer a variety of payment methods that reflect local preferences, from credit cards to digital wallets and installment payments.

Rebill facilitates the integration of these payment methods, ensuring a seamless experience for both businesses and consumers. We offer a complete solution that simplifies payment management in one of the most dynamic markets in Latin America.

‍Contact us at today to find out how Rebill can help you optimize payment management and maximize your presence in Argentina.

Introduction

Brazil, one of the largest e-commerce markets in Latin America, has a variety of payment methods that businesses should be aware of to maximize their success in the country. Below, we offer a detailed guide on the main payment methods in Brazil, with their characteristics and how you can integrate them into your digital business to improve conversion and customer experience.

What are the most commonly used payment methods in Brazil?

1. PIX

PIX is one of the most revolutionary payment methods in Brazil, introduced by the Central Bank in 2020. It allows instant payments 24/7, which has driven its massive adoption by both consumers and businesses. It is fast, easy to use and has no fees, making it a preferred option for transactions of all kinds.

For companies, integrating PIX is not only a competitive advantage, but practically mandatory if they want to offer a widely used payment method.

Credit cards

Credit cards continue to be the dominant payment method in Brazil, accounting for a large share of online transactions. Brazilian consumers value interest-free installments, which allow them to finance their purchases over several months at no additional cost.

Among the most popular credit cards are Visa, Mastercard, Elo and Hipercard. An important aspect to consider is that consumers often use more than one card to make a purchase, splitting the payment among several to optimize their credit limits.

Debit cards

Debit cards are used primarily for immediate purchases and account for a significant portion of lower-value transactions. Although they do not offer the financing option of credit cards, they remain a safe and popular option for consumers who prefer not to accumulate debt.

4. Digital wallets

The use of digital wallets has grown considerably in Brazil. These platforms allow users to store money and make payments online without the need to constantly enter their card details. Among the most widely used are:

• Mercado Pago
• Google Pay
• PicPay
• PagBank

Digital wallets offer a secure and convenient experience, which explains their growing popularity.

5. Bank ticket

The boleto bancário is a traditional payment method that continues to be used by a significant portion of Brazilian consumers, especially those who do not have access to credit cards. Boleto allows users to make purchases online and pay in cash or by bank transfer at physical locations. Although its use has declined with the emergence of Pix, it is still relevant for certain transactions.

The relevance of offering installment payments in Brazil

One of the most outstanding features of the Brazilian market is the preference for interest-free installment payments, especially for higher-value purchases. This option allows consumers to finance their purchases in monthly installments without additional costs, which is very attractive in a country where credit is essential for many people.

Companies that offer this option tend to see an increase in the average transaction value, as consumers feel more comfortable making large purchases when they can pay for them in installments.

The importance of accepting payments in reais

For any international company that wants to operate in Brazil, it is essential to accept payments in Brazilian Reais (BRL). Offering prices in the local currency not only improves the user experience, but also increases the conversion rate by eliminating uncertainty related to exchange rates. Brazilian consumers prefer to see prices in their currency to better calculate final costs.

How Rebill can help you

Rebill facilitates the integration of all these payment methods for companies operating in Brazil. Our platform supports credit and debit cards , PIXdigital wallets and boletos bancáriosallowing your digital business to offer the most popular options among Brazilian consumers.

Advantages of using Rebill:

• Fast integration with the main local payment methods.
• Installment payments and the option to process multiple cards in a single transaction.
• Compliance with local regulations and maximum security in all transactions.

Conclusion

Brazil is a growing e-commerce market, with specific payment methods that companies must offer to optimize their sales. From PIX to credit cards with interest-free installments and boletos bancáriosFrom PIX to credit cards with interest-free installments and boletos bancários, it is key to offer a wide range of payment options to meet consumer preferences.

Rebill facilitates the integration of these methods, improving the customer experience and helping to maximize conversion in the Brazilian market.

Mexico is one of the most important markets for e-commerce in Latin America, with a consumer base that values digital transactions as much as traditional options. Knowing the main payment methods in Mexico is crucial for any company looking to optimize its presence in this market.

What are the most commonly used payment methods in Mexico?

Debit and credit cards

Debit and credit cards remain the most popular payment methods for e-commerce in Mexico. However, compared to other countries in the region, Mexico has a lower approval rate for credit card transactions due to fraud concerns. This has led consumers to opt for other, more secure payment methods in certain circumstances.

• Debit cards: They represent more than 70% of online transactions in Mexico. They are popular because of their ease of use and because many consumers prefer not to use credit for everyday purchases.
• Credit cards: Although less widely used than debit cards, credit cards are essential for interest-free purchases, a highly valued option in the Mexican market. The most popular cards include Visa, Mastercard and American Express.

2. Cash payments through OXXO and 7-Eleven

Cash is still a very important method in Mexico, especially for those who do not have access to banking services or prefer to avoid using cards. Companies such as OXXO allow consumers to make purchases online and pay in cash at one of its thousands of physical stores. This method is secure and avoids chargebacks, making it an attractive option for both consumers and businesses.

OXXO and other chains such as 7-Eleven facilitate payments without the need for a bank account, which fosters financial inclusion. In addition, cash payments are preferred by users who are wary of sharing banking information online.

3. Digital wallets

Digital wallets have gained popularity in recent years, driven by the convenience of paying without the need to enter card data for each transaction. Some of the most widely used wallets in Mexico are:

• Mercado Pago
• Paypal
• BBVA Wallet

These wallets allow consumers to store funds and pay securely and quickly online. Mercado Pago, in particular, has positioned itself as a dominant option in ecommerce due to its integration with Mercado Libre and other local merchants.

4. Bank Transfers (SPEI)

SPEI transfers are a reliable and secure payment method in Mexico, especially for higher value transactions. This method allows the direct transfer of funds between banks instantly and at no cost. Although it is not the fastest or most convenient method for all purchases, it is still a solid option for many businesses.

5. Interest-free months

A key feature of the Mexican market is the option of paying in to pay in interest-free installments. This allows consumers to finance large purchases without incurring additional costs. Credit cards often offer this option in partnership with retailers, and it is a crucial factor in driving sales, especially on higher-value products.

6. Buy now, pay later (Kueski Pay)

Buy now, pay later" services are gaining ground in Mexico. Platforms such as Kueski Pay allow consumers to split their purchases into more manageable payments, without the need for credit cards. This method is popular among younger users, who are looking for financial flexibility.

The importance of security in digital payments

The high rate of fraud in Mexico has led companies to implement additional security measures, which can affect the approval rate of credit card transactions. Two-factor authentication, the use of fraud detection systems and data tokenization are essential to ensure consumer confidence and reduce chargebacks.

How Rebill can help you

Rebill facilitates the integration of all these payment methods into your business, ensuring a seamless user experience optimized for the Mexican market. From accepting cash payments through OXXO, to implementing recurring payments with credit or debit cards, Rebill offers solutions adapted to the particularities of Mexico.

Advantages of using Rebill:

• Full integration of debit cards, credit cards, cash payments and digital wallets.
• Interest-free installment payment options, essential in the Mexican market.
• Optimized security and higher approval rates to minimize the risk of fraud.

Conclusion

Mexico is a dynamic market with a diverse mix of payment methods that include debit and credit cardscash payments through OXXOdigital wallets and bank transfers. To be successful, companies must offer multiple options that satisfy consumer preferences, while ensuring a high level of transaction security. With Rebill, your company can easily integrate these payment methods and optimize your operation in Mexico.

Contact us at today to find out how we can help you expand your business in Mexico.