Cash use is so prevalent in many Latin American markets that consumers go out of their way to use it to make a payment or complete other online transactions that most people would do from their phones. It’s not uncommon for people to walk or drive to a nearby supermarket, pharmacy, or convenience store – with cash in hand – to pay a bill or make a purchase. It’s a friction-filled process that is the absolute antithesis of seamless, one-touch shopping. The silver lining is that this extra step has made it easier for merchants in the region to start digitizing by accepting cash as a payment method upon checkout.
When merchants do consider starting to digitize, many ask first about pricing. While pricing is important, there’s much more to payments than that. Digital payments and payments technology also translate into how to control fraud, increase acceptance rates, and boost customer conversion. The pandemic has made it much easier for folks to adopt digital services, which on the back end are tied into digital payments. Latin America has one of the highest percentages of smartphone penetration in the world, which has made it easier for people to digitize their transactions.