Online payments: learn about the current scenario of online payment methods in Latin America

[shammis606]

Let's be honest, digital payment methods are nothing new, so we didn't want to be redundant with a post about their origin and history — because we already have a very complete one —, and this time we really want to give you something new that reflects the current trends in e-commerce .

In this case, our article is designed to show you the real how to use the rcs database for direct marketing scenario of online payments in our region, as well as the most important companies in this field in Latin America.

All this taking into account the relevance that fintech has had for global economies, especially those of our hemisphere, where people have more opportunities than ever to carry out transactions , creating new methods of work, business and, of course, commercial exchange.

If you still don't know the impact of online payments and want to know which options have made it possible to overcome the hegemony of cash in our countries, we challenge you to read us until the end.

Overview of online payments in our region
You've probably changed the way you interact with others over the past few months. But what happens when you have to pay and have to give and receive cash or hand your card to a cashier to collect the payment? It's a little unhygienic, isn't it?

In the case of a virtual store , there is no problem, because you do not need to make contact with anyone else, but in the supermarket or in convenience stores it is a different story and for this reason, contactless payments emerged .

Contactless: pay without anyone touching your things
The current reality for Latin Americans reflects that 84% of people believe that contactless payments are the best option when consuming in an establishment , as shown in this article from Tyn Magazine.

In fact, in countries with massive use of cash such as Mexico, Colombia or Argentina, governments, financial institutions and even fintechs have implemented digital products and services that promote online payments and prevent money or cards from passing from hand to hand.


An important fact that this article brings, and that must be taken into account, is the one provided by Mastercard where it says that 70% of consumers think that digital payments will be permanent for the future .

Now, it's one thing to think that it's more hygienic and another to put it into practice, especially knowing how we behave in our countries. Therefore, discover how the use of this technology has been growing, starting with the adoption of local payment methods such as the one we will see now.

Amazon and Oxxo omnichannel payments
If you live in Mexico, you most likely have an Oxxo nearby right now. Amazon has seen this and has implemented an omnichannel payment system in the more than 19,000 available stores , meaning you can order through Amazon and pay in cash directly at the Oxxo .

This is a very common problem faced by e-commerce businesses in Mexico , since the use of physical money is massive and normalized. This has made life difficult for more than one digital entrepreneur .

The news came in September of this year, and the only thing you will need —besides the money— is to place your order on Amazon Mexico and bring a barcode on your cell phone to the nearest Oxxo to be able to order your things online easily and without complications without the need for credit or debit cards.


In fact, you do not need to have a balance in your Amazon account, and you will be able to make the payment within 48 hours and you will only have to pay an extra MXN $12 pesos, the same as they charge on each invoice.

Cool, right?

Furthermore, this new feature is well-matched with the one that Oxxo already allowed, which was to select a store from that company as a delivery point for Amazon packages.

And, speaking of those people who do not have banking products, but want to access the advantages of these services, e-wallets emerge as a more than efficient option to have digital money, avoiding annoying commissions.

Do you want to learn how to make your online payments without having a bank account? Keep reading!

E-wallet applications are gaining strength in Latin America
In short, e-wallets are mobile tools that allow financial transactions between people and companies (and between people and people) in a completely digital way.

With them, users can buy the things they want and pay from an application on their cell phone or even via NFC, a technology that allows paying in seconds just by bringing the phone or a wearable close to a machine without making direct contact with it.

In general, what the consumer has to do is register their credit or debit card in these applications so that the payment is then accelerated, requiring nothing more than that they enter the password on the same cell phone.

In addition, the ability to pay by proximity for these applications is made possible by QR code technology.


E-commerce platforms are not only designed to make life easier for the entrepreneur, but also for the buyer. In this case, e-wallets are here to stay, apparently. Their advantages and data speak for themselves.

Experts in the field say that electronic wallets will be the future of online payments in the coming years . Not only because they represent a convenient and easy-to-use option for people, but also because they are much safer —from the perspective of money protection and hygiene— than other payment alternatives.

And in a context of countries like Argentina where 62% of people have increased their use of online payments and 40% are just starting out in this trend —according to a Mastercard report reviewed on this site— these types of products are becoming more and more logical and necessary.

With all of the above said, you are probably already convinced that online payments are the future of financial transactions.

The only thing left for you to discover are the most innovative options that currently exist to bring it to the palm of your hand.

Get to know the most important ones!

5 companies offering online payment solutions in the region
Below are the most relevant options we have for paying electronically in Latin America.

EBANX
Founded in 2012 and offering services in Brazil, Mexico, Colombia, Chile, Uruguay and Peru, EBANX is an e-commerce platform that allows its users to make payments and transactions to multiple companies, such as AliExpress, Spotify, Wish, AirBNB and more.

Within the mobile app or from your browser, you can make international payments without any problem.

And from the entrepreneurs' point of view, it is an opportunity to expand their borders as it allows people from these countries to use their platform with more than 100 payment methods to purchase.

The most interesting thing about the integration they offer is that they rely on the most commonly used payment methods in each country, such as the Boleto in Brazil, Oxxo payments in Mexico, and others.

Thus, the end customer experience is optimized and the company's procedures as well, because they will not have to include these methods in their business model natively, since they can do so with the mediation of EBANX .


Clip
Payment alternatives such as Clip are simplifying the lives of businesses, since, without the need for annoying paperwork and requests at banks, an entrepreneur can have a device to charge with cards or even contactless .

With its various options, this Mexican startup allows its users to accept all types of credit and debit cards, whether chip or magnetic stripe, and can even integrate with platforms such as Samsung Pay to make payments.

By using just one app and a card reader, businesses will be able to expand their payment options without having to invest a lot. In fact, they can offer their customers payments for up to 12 months without interest.

Clip on all businesses
What are you waiting for to digitize your business ?

WhatsApp Pay
Did you know that WhatsApp has its own online payment platform? You've probably noticed that many e-commerce companies have their own communication channel there, so you'll soon be able to buy from them directly through the app.

This modality will allow anyone to send money to their contacts, donate it to charities and, of course, buy the things they want . All you have to do is link your credit or debit card and you will get a QR code with which you can make and receive payments.


For now, this modality is only available in India, but it will soon begin to be implemented in our countries — Brazil is even one of the next in line —, thus paving the way for business and transactions to be done with increasing ease and promising to become a more than attractive alternative, as mentioned in this article .

PayU
This alternative, present in Argentina, Chile, Brazil, Colombia, Mexico, Panama and Peru, offers its users more than 70 payment methods, with more than 20 thousand associated companies such as Avianca, DirecTV, Movistar or Tigo.

It works like an e-wallet, where all you have to do is top up the money in the virtual account to make payments.


Google Pay, Apple Pay and Samsung Pay
Finally, on our list, two options that you have surely seen whether you are an Android or iOS user.

These three options are clearly highly leveraged on cell phone use and with them you can pay in thousands of stores in our countries, buy applications, rent movies, make electronic payments or buy video games with a few taps on your phone screen.

Their great advantage is the level of usability they have, and their integration with applications, systems such as NFC, e-wallets and payment devices worldwide.


Conclusion
Online payments are the new face of transactions, not only in the context of the coronavirus , but from a very broad point of view thanks to the number of benefits they bring to users and the simplification of processes.

The reality we are experiencing is a sample of what the future of payments and collections will be like. And this is already generating new business opportunities for thousands of entrepreneurs who are diversifying when it comes to selling their products.

Do you want to learn how to sell online ?