85% of transactions in Latin America are cash-based and only 39% of the population has a bank account. So how should airlines and other travel merchants factor APMs into their payment strategies? Should airlines and travel merchants focus on integrating specific APMs that are relevant only to the locales they serve? Or should they take a more flexible approach that gives them access to dozens of APMs favored by traveler segments from different Latin American countries – all through a single Payment Orchestration platform?Īs airlines and other travel merchants assess their payment strategies in the region, it's worth revisiting the different payment options currently available to Latin America’s consumers and emerging travel sector.įrom the Baja peninsula in Mexico to the Tierra del Fuego archipelago in Chile, the southernmost territory in Latin America, cash is still popular for a number of reasons – lack of banking infrastructure, lack of access to credit, and a mistrust in financial institutions. Some APMs such as PayPal (operating locally in Mexico and Brazil) remain popular across multiple Latin American countries, while some, like Brazilian boletos, are strictly domestic. Online card payments in Chile, for example, more than doubled at the end of March 2020 compared to the same period the year before. Owing to the necessity of online payments and digital, contactless transactions, 55% of consumers in the region now have a bank account. The impacts of that crisis in Latin America were severe, and it accelerated many trends in the payments space. Of course, there was one major disruption that occurred since our last report – the coronavirus pandemic. Local mobile payment players in Latin America include: PayPal (operating locally in Mexico and Brazil).
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