The Power of Payment Modernization in Latin America

Friday, August 6, 2021

The Power of Payment Modernization in Latin America

Electronic money is positioning itself with greater predominance in an environment where digital media are breaking paradigms and are even forcing financial institutions to innovate in the market.

Technology has been displacing cash, modifying consumer behavior by offering multiple benefits, meet the main ones with us.

Electronic money has been positioned breaking paradigms and even forcing financial institutions to innovate in the market .

A more digital economy is opening space for new actors such as FinTech that are leading this fourth industrial revolution, where technology is becoming the main protagonist .

Even in Latin America, according to a study by Mastercard, it was revealed that the use of ATMs decreased among consumers and 62% reported using less cash due to COVID-19. Similarly, the use of contactless technology increased by 40% during the pandemic.

FinTechs and their main benefits in the digital payments revolution

Fast and secure transactions: through a mobile device or a computer you can send or receive money without suffering unnecessary risks and automatically .

Payment gateways as well as a more accessible and user-centered mobile banking is part of what the FinTech industry has come to innovate in a more digital and inclusive economy.

Antit stands out for its versatility in developing FinTech products with experience in the market, focusing each of the details of its projects on the user, seeking to innovate in an increasingly competitive industry.

This competitive advantage has made banks increasingly inclined to seek mutual collaboration with FinTechs to reinvent themselves in the market .

Access to electronic payments: from deposits by mobile SINPE, service payments and even the so-called contactless payments, are part of the benefits that are increasingly leaving aside the use of cash.

Instant payments meet the end-user demand for greater speed and control, something banks must take advantage of the FinTech experience.

"A state-of-the-art electronic payments system offers Costa Rica untapped potential for FinTech companies to be a powerful catalyst for financial inclusion ," said the Economic Study of Costa Rica 2020 of the Organization for Cooperation and Economic Development (OECD).

Applications in the Costa Rican market such as Pei created by Antit process payments instantly 24/7 and transfer money to friends and family.

It even allows dividing a payment for an outing between friends through a simple application from the App , combining the characteristics of a direct debit with the benefit that it is still up to the payer to initiate that process.

This functionality allows the user the ability to better control their finances and with its inclusion of QR codes it facilitates the almost immediate availability of funds by offering an alternative to cash payments.

Strengthen the economy: FinTechs facilitate greater business efficiency amid the global crisis.

Electronic commerce is going through its best moment with growth of over 300% in Latin America , according to a study by Kantar at the regional level.

FinTech startups bring their online value proposition directly to users , without the need for branches or limited attention times, all of this through digital means.

So it is precisely there where they have an important opportunity in the development of solutions with products capable of innovating and responding to the changing demands of consumers.

Similarly, payments by electronic means present a very lucrative opportunity for the banking industry by giving access to a population that was previously excluded from this market.

Currently, more than 2 billion adults are not incorporated into the formal financial system, according to the World Bank's Universal Financial Access 2020 report, this sector has been key in the growth of the FinTech system creating products that adapt to this population.

" Financial access enables individuals and businesses to safely use a variety of appropriate financial services, including savings, payments, credit, and insurance," the report noted.

Melissa López
August 6, 2021