Rapyd
Research Highlights Latin America as a Global Leader in Payments and Fintech
New
data from Argentina, Brazil, Chile, Colombia, Mexico and Peru provides
country-by-country analysis on preferred methods for workers to be paid;
uncovers growing opportunity for global businesses to reach LATAM consumers in
an increasingly digital world.
Source:
Business Wire
Rapyd,
the leading fintech-as-a-service partner, today released its 2022 Latin America
State of Disbursements Report. The report analyzes the findings of a survey
Rapyd conducted in June 2022 to more than 3,000 online consumers in Argentina,
Brazil, Chile, Colombia, Mexico and Peru on their most-commonly used and
preferred ways to get paid. The findings illustrate that with the region’s
hypergrowth in local and cross-border business, LATAM is emerging as a primary
market for expansion by global businesses. Contractors, workers and suppliers
are seeking quick and secure payouts and disbursements in their preferred
method across multiple countries. The report shows that:
Traditionally
underserved by banks, LATAM beneficiaries have adopted an open mind to fintech
and are showing a clear preference to digital methods to receive payments:
LATAM
consumers want to receive direct digital payments. Over 50% of respondents
prefer to receive their earnings by direct bank transfer.
Direct
bank transfers are also preferred for other payouts such as rental income, tax
refunds, loan payouts and commissions. Ewallets and wire transfer are another
preferred way to receive payments for personal gifts, repayments, commissions
and many other payouts.
Even
as these various digital payments soar, cash is still one of the most common
ways to receive payments. Over 20% have received payment via cash for various
payouts in the past three months.
Nearly
40% of consumers receive payments regularly for freelance and gig work. Many of
these gig workers may not have access to traditional bank accounts and are more
open to getting paid by direct, same-day digital payments through ewallets or
other methods.
Even
as consumers open up to digital payments, offering fast and secure payments is
crucial for global businesses to reach LATAM workers:
Over
40% of LATAM consumers think of themselves as “explorers” of smart payment
technology and are open to exploring innovative technology. Only 13% of
consumers surveyed identified as “laggards” regarding their own adoption of
fintech applications.
As
digital payments grow, security becomes increasingly important for consumers.
76% of LATAM consumers say receiving payments safely and securely is the top
priority.
The
other most important features of disbursement methods are receiving same-day
payments (61%), and receiving notifications on payment status (61%).
Rapyd
Chief Marketing Officer Marc Winitz says: “Finally the world is seeing what
we’ve known to be true for years – Latin America is a hotspot for fintech
innovation. When it comes to both paying and getting paid, Latin American
consumers operate with a digital-first mindset – and they have already adopted
innovative practices that the rest of the world is still catching onto.
Localized payout and disbursement in preferred local methods continue to be one
of the most requested capabilities we are seeing across the region and our
research confirms this.”
While
only 37% of Latin American consumers have a traditional bank account, 60%
consider themselves early adopters and explorers of fintech technology. Mr.
Winitz added, “This unique market dynamic creates a huge opportunity for
regional and global businesses that want to expand their reach and presence
across Latin America. Looking ahead, the businesses that succeed and win in the
region need to understand and accommodate LATAM consumers expecting to receive
payments in their preferred methods with an emphasis on speed, security and
data protection.”
In
June 2022 Rapyd conducted a research study to 3,088 online consumers in
Argentina, Brazil, Chile, Colombia, Mexico and Peru to understand the financial
habits and disbursement method choices, considerations and preferences of
consumers in these six key Latin American markets. All respondents made an
online purchase in the previous month and were nationally representative across
age and income scale.
About
Rapyd
Rapyd
lets you build bold. Liberate global commerce with all the tools your business
needs to create payment, payout and fintech experiences everywhere. From
Fortune 500s to ambitious business and technology upstarts, our payments
network and powerful fintech platform make it easy to pay suppliers and get
paid by customers—locally or internationally.
With
offices worldwide, including Tel Aviv, Dubai, London, Iceland, San Francisco,
Miami and Singapore, we know what it takes to make cross-border commerce as
easy as being next door. Rapyd simplifies payments so you can focus on building
your business.