SAN FRANCISCO–(BUSINESS WIRE)–Rapyd, the leading fintech-as-a-service partner, today released its 2022 Latin America State of Disbursements Report. The report analyzes the findings of a survey Rapyd conducted in June 2022 of more than 3,000 online consumers in Argentina, Brazil, Chile, Colombia, Mexico and Peru about their most used and preferred ways to get paid. The findings illustrate that with the region’s hyper-growth in local and cross-border business, LATAM appears as a primary market for the expansion of global businesses. Contractors, workers and suppliers seek fast and secure payments and payments in their preferred method in several countries. The report shows that:
Traditionally underserved by banks, LATAM recipients have adopted an open mind to fintech and show a clear preference for digital methods of receiving payments:
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LATAM consumers want to receive direct digital payments. Over 50% of respondents prefer to receive their income by direct bank transfer.
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Direct bank transfers are also preferred for other payments such as rental income, tax refunds, loan payments and commissions. E-wallets and bank transfer are another preferred way to receive payments for personal gifts, refunds, commissions and many other payments.
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Although these various digital payments are increasing, cash is still one of the most common ways to receive payments. Over 20% have received payment via cash for various payments in the last three months.
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Almost 40% of consumers receive regular payment for freelance and gig work. Many of these gig workers may not have access to traditional bank accounts and are more open to being paid by direct, same-day digital payments through ewallets or other methods.
Even as consumers open up to digital payments, offering fast and secure payments is critical for global businesses to reach LATAM workers:
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Over 40% of LATAM consumers think of themselves as “explorers” of smart payment technology and are open to exploring innovative technology. Only 13% of consumers surveyed identified themselves as “laggards” regarding their own use of fintech applications.
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As digital payments grow, security becomes increasingly important to consumers. 76% of LATAM consumers say receiving payments safely and securely is their top priority.
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The other most important characteristics of payment methods are receiving payments on the same day (61%), and receiving payment status notifications (61%).
Rapyd’s marketing manager Marc Winitz says: “Finally, the world is seeing what we’ve known to be true for years – Latin America is a hotspot for fintech innovation. When it comes to both paying and getting paid, Latin American consumers operate with a digital-first mindset – and they’ve already adopted innovative practices that the rest of the world is still catching on to. Localized payout and payout in preferred local methods continues to be one of the most in-demand features we see across the region, and our research confirms this.”
While only 37% of Latin American consumers have a traditional bank account, 60% consider themselves early adopters and explorers of fintech technology. Mr. Winitz added: “These unique market dynamics create a tremendous opportunity for regional and global businesses looking to expand their reach and presence in Latin America. Looking ahead, the businesses that succeed and win in the region must understand and cater to LATAM- consumers who expect to receive payments in their preferred methods with an emphasis on speed, security and data protection.”
Download the full report here.
Research methodology
In June 2022, Rapyd conducted a research study of 3,088 online consumers in Argentina, Brazil, Chile, Colombia, Mexico and Peru to understand the financial habits and choices, considerations and preferences of consumers in these six key Latin American markets. All respondents made an online purchase in the previous month and were nationally representative across age and income scales.
About Rapyd
Rapyd lets you build boldly. Unleash global commerce with all the tools your business needs to create payment, payout and fintech experiences everywhere. From Fortune 500s to ambitious business and technology upstarts, our payments network and powerful fintech platform make it easy to pay suppliers and get paid by customers – locally or internationally.
With offices around the world, including Tel Aviv, Dubai, London, Iceland, San Francisco, Miami and Singapore, we know what it takes to make cross-border trade as easy as being next door. Rapyd simplifies payments so you can focus on building your business.
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