The Power of Payment Modernization in Latin America

Melissa López
December 6, 2020

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.

In the current conjuncture, technology displaced cash, sedimenting changes in consumer behavior, breaking gaps, and highlighting its multiple benefits.

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

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

Payment gateways, neobanks, as well as more accessible and user-focused 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, it focuses 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 to reinvent themselves in the market.

Access to electronic payments: from mobile SINPE deposits, service payments, and even the so-called contactless payments, they are part of the benefits that are increasingly neglecting the use of cash. Instant payments meet end-user demand for greater speed and control, something banks must leverage 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, an expert company in FinTech development, process payments instantly 24/7 and transfer money to friends and family.

It even allows you to divide 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.

Besides, 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.

Strengthens the economy: FinTechs facilitate greater business efficiency during the global crisis, electronic commerce is going through its best moment with the growth of more than 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 and 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 2,000 million adults are excluded from 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 is the first step towards broader financial inclusion, where individuals and businesses can safely use a variety of appropriate financial services, including savings, payments, credit, and insurance," the report noted.