The most popular online alternative payments in Latin America

Alternative Payment Methods (APMs) have gained prominence as solutions that offer convenience, security, and accessibility in a diverse and dynamic market. This is largely due to the connectivity of mobile phones and a young, increasingly connected population. In this article, we will explore why these modalities are becoming increasingly popular in Latin America. Additionally, we highlight the most used APMs in the region, including bank transfers, platforms like Mercado Pago, and country-specific solutions.

Why are alternative payment methods (APMs) becoming more popular in Latin America?

The growing popularity of APMs in Latin America can be attributed to several factors. Firstly, financial inclusion remains a challenge in the region. With the exception of Brazil, many consumers lack access to traditional banking services, which drives the need for alternative methods. Furthermore, trust in traditional payment methods may be low due to security issues and fraud. APMs often offer greater security and convenience, gaining the trust of users. Another significant factor is technological evolution. The widespread adoption of smartphones and increased internet access have created a conducive environment for the development and adoption of new payment technologies. Additionally, changes in consumer behavior, accelerated by the covid-19 pandemic, have hastened the transition to digital payments. Consumers are seeking methods that offer speed, security, and ease of use, characteristics frequently found in APMs.

The most popular alternative payment methods in Latin America

In Latin America, a variety of alternative payment methods have gained popularity. Each country has its specific preferences, but some methods stand out due to widespread adoption and consumer trust.

• Bank transfer. Bank transfer is one of the oldest alternative payment methods and is still widely used in Latin America. This method allows consumers to transfer money directly from their bank accounts to sellers’ accounts, without the need for intermediaries. The simplicity and security of bank transfers make them a popular choice, especially for higher-value purchases.
• Spei In Mexico. The Sistema de Pagos Electrónicos Interbancarios (Spei) is a widely adopted payment method. Operated by the Bank of Mexico, Spei enables instant bank transfers between different banks. This system is highly secure and efficient, offering consumers a reliable alternative to credit and debit cards.
• Mercado Pago. Mercado Pago is one of the most popular payment solutions in Latin America, especially in Argentina and Brazil. As a payment platform integrated with Mercado Libre, the largest eCommerce platform in the region, Mercado Pago offers a variety of payment options, including digital wallets, bank transfers, and installment payments. Its flexibility and wide acceptance make Mercado Pago a convenient choice for many consumers.
• PSE In Colombia. Pagos Seguros en Línea (PSE) is one of the main payment solutions. This system allows consumers to make secure online payments directly from their bank accounts, efficiently and safely. PSE is particularly popular among those who prefer not to use credit and debit cards, offering a reliable and affordable alternative.

Other relevant solutions

In addition to the methods mentioned above, various alternative payment methods play significant roles in different countries in Latin America:

• Oxxo in Mexico. Oxxo is a chain of convenience stores that allows consumers to pay for their online purchases in cash. This method is especially useful for those without access to banking services.

• ServiPag and Sencillito in Chile. These platforms allow consumers to pay bills and make online purchases using a variety of payment methods, including cash and bank transfers.

• SafetyPay in Peru and Ecuador. SafetyPay offers a secure platform for online payments, allowing consumers to pay directly from their bank accounts or in cash through local partners.

Expand your business by introducing new payment methods with

LaFinteca For businesses looking to expand their operations in Latin America, understanding and adopting local payment methods is strategic. LaFinteca offers a comprehensive solution to integrate various alternative payment methods, ensuring that businesses can efficiently and securely meet the needs of local consumers. The payment gateway facilitates the integration of methods such as bank transfers, Spei, Mercado Pago, PSE, and others, enabling businesses to offer a diverse payment experience tailored to local preferences. By using LaFinteca, businesses can improve their conversion rates, increase customer satisfaction, and drive growth in the Latin American market.

Final considerations

Alternative payment methods are playing an increasingly important role in the eCommerce landscape of Latin America. With financial inclusion still a significant challenge and the evolution of payment technologies, APMs offer secure, convenient, and accessible solutions for consumers. For businesses, adopting these methods is essential to achieve success and growth in the region. By collaborating with experts like LaFinteca, businesses can ensure they are well-equipped to meet market demands and capitalize on the opportunities offered by alternative payment methods.