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Despite the rise of alternative payments, cash remains a very popular payment method in developing regions. Latin America is no exception. However, despite the complexities associated with the region, organizations still want to enter the market, especially when it comes to different currencies.
AstroPay is an online payment service that allows users to make online purchases on foreign sites. We spoke with the company’s CEO about what makes LatAm such an interesting opportunity for paytech.
I am Mikael Lijtenstein, CEO of AstroPay, a fintech company founded in 2009. The company’s mission is to enable Brazilian consumers, especially those without access to traditional banking services, to buy online internationally. AstroPay is a pioneer of digital payments in Latin America, expanding into new markets in 13 years and becoming the payment solution of choice for millions of customers in Asia, Africa, the UK and Latin America, bringing merchants and users fast and convenient. tied to and easy.
Prior to becoming CEO, he served as Chief Operating Officer, leading the company’s sales and operations. This includes managing her AstroPay’s product development, innovation, sales activities and services in multiple markets. With an engineering background, I have years of experience providing cross-border payments and connecting global merchants to emerging markets through digital solutions.
Having gained operational experience in emerging markets, the number of consumers and merchants using our services has grown significantly, and along with the payment methods available in the digital wallets available to our users, business has grown exponentially. It has grown. After establishing a solid base in Latin America, the business has expanded to Asia, Africa and the UK and continues to expand as part of its international growth plans.
There is a gradual shift away from cash-based payments to alternative payment methods (APMs) and digital wallets. Cards are still the preferred online payment method in the region, with about 70% of e-commerce payments being made with cards, but digital wallets are growing and the population is young, making e-commerce It’s still a nascent market and has a lot of room for growth.
E-commerce is expected grow 30% each year Until 2025, the emergence of new payment methods will enable access to digital markets and financial systems. In particular, we are seeing a rise in local digital payment methods such as: PIX in Brazil. AstroPay started offering this earlier this year. Social commerce trends are also on the rise, with a significant number of Latin Americans saying they prefer shopping on social media.
Digital payments in Latin America continue to thrive, driving financial inclusion and economic growth in countries in the region. An example is the PIX launched by the Central Bank of Brazil in 2020. It enables peer-to-peer transactions similar to other products around the world. VenmoBrazilian consumers who do not have credit cards have used credit cards. Its convenience and safety make it very popular with consumers and merchants.
During the pandemic, consumers in Latin America have become more open to using digital payments and e-commerce from home.This option is available to everyone, even those without bank accounts. . AstroPay is one of the pioneers of digital payments in the region, with global merchant partners wishing to expand into Latin America. The most recent example is Huobi global.
Another example is Uruguay, where the digitization of payments has accelerated since 2014 when the Uruguayan government launched its Financial Inclusion Law. It facilitates digital payments and has proven to be very lucrative thanks to tax incentives.
Overall, digital payments in Latin America are becoming more customer-centric, and consumers are aware of what journeys and experiences they want when it comes to paying and purchasing goods/services online. With this in mind, successful fintechs are those who truly understand and offer easy, frictionless and simple payments.
The Rise of Mobile Wallets and Fintech Companies [in Latam] It is driving the explosive growth of e-commerce in the country. It presents an opportunity to accelerate your digital transformation.
Part of AstroPay’s success in emerging markets is knowing local needs, culture and customs. This is to learn about their pain points as well as to be able to offer a bespoke and tailored payment experience. Also to understand consumer preferences and the most popular methods and providers. , required in-depth research work.
We also discovered that a seamless payment experience has been proven to increase conversion rates at checkout points. To provide your users with a smooth user experience, it’s important to use one-click experiences and automated payment fulfillment to ensure a journey that avoids pain points. Timing is also essential when introducing new payment methods to stay ahead of consumer demand and keep up with the latest trends and developments in technological innovation and regulation.
With an entrepreneurial spirit and an unwavering commitment to finding new solutions to meet the daily financial needs of the global community, AstroPay develops products on demand.We offer prepaid vouchers to pay online at hundreds of international sites and this year visa When master Card A debit card for shopping online or in stores that accept debit cards. This move expands the reach of our user base while delivering more benefits to our customers.
The biggest challenge when entering a new market is understanding the complexity and peculiarities of the local payment environment. This includes ecosystem players, payment systems, regulations, local and international payment methods, and more. This was our first challenge when we entered the UK last year, but it was nothing new to us.
Our extensive experience in developing local solutions by knowing and understanding what our users want has left us well equipped to tackle this challenge. By respecting the social and cultural differences of individual users, we are able to provide exactly what our clients need.
Cash is the predominant payment method in the Middle East, Africa and Latin America, but this trend is waning as mobile and digital payment methods evolve and gain momentum rapidly in these regions. However, despite the rapid proliferation of technology, there are still many people who do not have internet access or bank accounts.
Latin America is following the same digital journey as other emerging markets in Africa and the Middle East, as well as countries in Europe and Asia. The rise of mobile wallets and fintech companies has led to an explosion of domestic e-commerce. It presents an opportunity to accelerate your digital transformation. Countries in these regions are attracting many international companies, further accelerating the flow of cross-border trade. AstroPay is proud to be part of this journey and help transform people’s lives.
Francis Bignell
