Unlocking Latin America’s Payment Potential: Navigating a Complex Landscape

Why Latin America?

Latin America is booming. With a population of 619 million and a GDP projected to hit $6.3 trillion by 2025, the region is growing fast. While advanced economies are projected to grow at just 2% annually, emerging regions like Latin America are expected to expand at twice that rate.  For businesses looking to win in global markets, Latin America is the place to be.

Digital transformation is also accelerating. Today, 461 million people in Latin America are online—most via smartphones. Mobile is king, with 81% of gamers across Brazil, Mexico, Colombia, Chile, Argentina, and Peru using their phones to play.

Opportunities in the Gaming Industry

Gamers in Latin America want quick, frictionless payment options that keep up with fast-paced in-game action. These purchases are often impulsive—players expect seamless transactions they can trust. 

Local payment methods aren’t just preferred. They’re essential.

The Rise of Local Payment Solutions

Alternative payment methods are rewriting the rules of e-commerce in Latin America:

Digital wallets are booming. Mercado Pago (Argentina & Mexico), Nequi (Colombia), and PicPay (Brazil) are among the fastest-growing payment methods, accounting for 21% of regional e-commerce spending in 2023, with projections reaching 28% by 2027.

Real-time payments are taking off. In Brazil, Pix achieved 74% adoption nationwide, enabling instant, secure transactions.

Bank transfer systems such as PSE in Colombia, supported by 20 banks, represent 25% of online purchases.

Offline payment methods remain relevant. In Mexico, OXXO Pay lets users generate an online voucher and pay in-store, contributing to 7% of the country’s e-commerce value in 2023.

The Role of Card Payments

Despite the rise of alternative methods, credit and debit cards still dominate—making up 35% of total e-commerce transaction value in 2023. 

This makes offering installment payment options a crucial move, particularly in Brazil and Mexico, helping gamers afford higher-value purchases.

Challenges to Overcome

Latin America is a growth engine—but how can businesses prepare for this dynamic market?

Fraud and Security Concerns: Fraud is a growing challenge, with Latin America ranking second globally for e-commerce fraud losses. Mastercard estimates that 20% of the region’s e-commerce revenue was lost to fraud in 2023. Preparing a solid fraud prevention strategy is essential.

Optimizing Authorization Rates: Balancing security and transaction success is tricky. Businesses need the right approach to capture sales without compromising safety. Our recommendation? Work with a payment provider that offers dynamic risk management tailored to Latin America’s market. 

Regulatory Complexity: Each country has its own payment regulations. Navigating these can be complicated, but working with experts who understand local nuances helps you stay compliant and focus on growth.

Getting ahead in Latin America

Coda makes entering Latin America’s complex payment landscape simple. With a dedicated local team covering business, legal, tax, product, fraud, and compliance, we offer competitive pricing across the region’s most popular payment methods. Our in-house fraud prevention tools help you maintain high authorization rates—so you can focus on growing your business.

Latin America’s potential is massive. With Coda’s local expertise, you’ve got a partner to help you simplify payments and succeed in this exciting market.