February 28, 2015
Innovation in Payments and Commerce is not limited only to developed countries like the US. Developing markets are posing far greater opportunities for the next generation of technologies in payments and commerce. South America seems have quite some activity underway including new deployments and new services leveraging the technologies whose reach is not just limited to developed countries. Here are some use cases highlighting the ongoing development in payments and commerce in the region:
A partnership for alternative payment methods
Alpha Payments Cloud and SafetyPay established a partnership which saw SafetyPay’s alternative payment methods offered to customers of international banks and merchants connected through the Alpha Payment Cloud Product Hub. SafetyPay’s real time alternative payment solution enabled consumers to shop from merchants worldwide and pay directly from their bank account in their local currency or in cash. The two companies have partnered seeking the tremendous growth opportunity for e-commerce in Latin America.
iZettle offers Square-like services
iZettle had established a global partnership with Banco Santander which led to the launch of its services in Brazil and Mexico. Like Square, iZettle is a social payments company making card acceptance possible for small business owners. Android and iOS smartphones and tablets can accept card payments using the iZettle Chip and Signature reader. The iZettle service also includes free business management software for tracking and analyzing sales.
This partnership launched a NFC mobile payments service
Bradesco, one of the largest banks in Brazil, had partnered with Claro, a leading mobile network operator, to offer NFC mobile payments across the market. These two companies further collaborated with Giesecke & Devrient (G&D) to provide the service at over 200,000 terminals across Brazil. G&D had supplied the TSM platforms as well as SkySIM CX SIM cards to store Visa and MasterCard account details.
Big VISA transaction numbers during World Cup opening weekend
During the four-day opening period of the tournament (June 12 – June 15, 2014), Visa found that international visitors spent more than US$27 million on their Visa accounts. On Saturday, June 14, 2014 alone international travelers to Brazil spent more than US$10.7 million using Visa products. This was the highest tourist spend day in the country in 2014.
This Brazilian startup offers effective financial services
Getting a credit card in Brazil can take weeks, including a huge amount of paperwork and multiple visits to the bank. Nubank came up with the solution to change this process, raised $ 14.3 million in funding and launched a platinum credit card that can be managed using a mobile app. One of the major boosts for companies like Nubank in Brazil is that the country’s broadband penetration is huge, led largely through smartphone growth.
Another firm offering Square-like' services
PayClip offers Square like services in the Latin American region complete with a card reader and dedicated apps. Like Square, PayClip also focuses on enabling smartphone users to accept credit/debit card payments. The company is growing against a backdrop ofh growing demand for payment terminal alternatives like digital wallets, mobile based checkout, virtual currencies, etc. PayClip addresses security concerns with an SMS based two-factor authentication system. PayClip’s card-reader dongle readily accepts EMV enabled cards.
Centili offers its mobile payments service
Now, merchants can use Centili to reach customers in Brazil, Mexico and Colombia, with a simple, secure and fast way of paying for popular digital content (wallpapers, games etc.). In these countries, credit cards have notably low penetration, as only 13% of Mexicans and 15% of Colombians over 15 years have a credit card. With Centili, merchants can also add fully-automated subscription management without the need to invest in extra hardware or software. It allows end-users to have continuous access to digital products and services without having to constantly renew their subscriptions.
This company is doing 25 million transactions per month
YellowPepper works towards providing exclusive mobile financial services. The company operates in 9 countries: Mexico, Colombia, Peru, Ecuador, Guatemala, the Dominican Republic, Bolivia, Haiti, and Panama. It claims to provide services to 4 million customers to execute over 25 million transactions per month. YellowPepper offers mobile financial services to banks, Mobile Network Operators (MNOs), utility providers, and Fast Moving Consumer Goods (FMCG) companies. YellowPepper enables them to transact with unbanked and banked customers, distributors, and suppliers.
ecommerce boom in Brazil
Brazilian e-commerce generated revenues of US$ 13.3 billion in 2014 with an annual growth rate of 24%. The importance of international websites providing products and services for the Brazilian market is also growing. Out of 10 Brazilian online shoppers, 4 purchased on international websites. Brazil has a total of 61.6 million people who have already purchased online, out of which 51.5 million unique online buyers placed a total of 103.4 million e-orders in 2014.
The Latin Uber experience
Taxibeat is an app maker that enables mobile phone users to find a cab. Taxibeat enables passengers to choose nearby taxi drivers based on their record, and hail the driver they prefer, using user ratings, distance, car model and on-board amenities, with no additional cost. The service has been deployed in a number of cities since its launch, including Sao Paulo, Rio de Janeiro (Brazil) and Mexico City (Mexico).