Top 7 payment methods in Latin America
Are you looking to open or expand your business in the Latin American market? One of the essential aspects to consider is payment methods that resonate with the locals. This region has a wide range of preferences when it comes to payments, and understanding these preferences can be the key to success.
In this article, we’ll take a look at the top 7 payment methods in Latin America among Payop merchant and shed some light on their benefits for your business.
Efecty is a widely used cash-based payment method, especially popular in Colombia. It allows users to easily pay utility bills, make online purchases, and transfer money through a vast network of Efecty agents in various towns. The process is simple: payers deposit cash and get a receipt as proof of payment.
Efecty is a preferred choice for the part of the population that doesn’t have access to traditional banking services or simply trusts cash more. It can definitely help you expand your audience reach in the region.
Pix is a Brazilian instant payment system that allows users to make transactions 24/7.
Money transfers, bill payments and online shopping are easily accessible by QR codes or by entering a transaction ID in online banking or apps.
Introduced by the Central Bank of Brazil, Pix has gained immense popularity due to its speed and convenience, making it one of the most preferred methods for online and in-person transactions. Integrating Pix into your payment options is a strategic move if your business targets the Brazilian market.
SafetyPay is another payment method that bridges the gap between online and offline transactions. It enables buyers to pay for online purchases in cash, with merchants receiving instant confirmations.
Safety Pay is widely accepted in many Latin American countries due to its connection with various banks and payment networks worldwide. The ability to make payments in local currencies regardless of the settlement currency, cross-border transactions and competitive fees make this method an excellent choice for businesses looking to cater to a diverse audience.
Webpay is an online payment method by Transbank that has gained consumers’ trust in Chile. With it, customers can make payments directly from their bank accounts, ensuring a simple and efficient payment process.
Integrating Webpay can boost your business’s credibility and appeal to local tech-savvy customers.
A leading cash-based payment method in Mexico, OXXO offers services nationwide through thousands of convenience stores. To pay in cash for their online purchases, customers just need to visit one of the locations and use a unique voucher with a reference number for the transaction. OXXO also enables customers to make money transfers, use prepaid cards and pay bills.
For businesses targeting Mexican consumers, this payment method is an opportunity to gain users’ trust by providing a convenient and familiar payment option.
PSE, or Pagos Seguros en Línea, is another popular Columbian payment method known for its security and efficiency. It allows payments for bills, online purchases and booking services directly from users’ bank accounts. Integrating PSE in addition to the cash-based Efecty can help you effectively reach the Colombian market.
If you’re eyeing the Mexican market, SPEI (Sistema de Pagos Electrónicos Interbancarios) as a local interbank electronic payment system may be a suitable addition to your list of payment options. Introduced by Banco de México, it allows customers and merchants to transfer money instantly between different financial institutions. SPEI is actively used for a variety of operations.
Factors to consider when choosing a payment method
When selecting payment methods, it’s essential to consider a range of factors, although, of course, geography comes first:
- Local preferences: You need to understand the payment preferences of your target audience in specific countries. What works in one country may not work in another.
- Security: Ensure that the payment methods of your choice maintain high security standards to protect your customers’ sensitive information.
- Integration: Easy integration into your e-commerce platform and appropriate technical support can save you time, effort and money.
- Costs: Estimate the fees related to each payment method, including transaction and currency conversion fees.
- User experience: A lengthy or confusing checkout process is considered one of the main reasons for cart abandonment. So, think about ease of use from a shopper’s perspective.
Payop offers over 450, including Latin America’s most popular online payment methods. With us you can meet the needs of different customer categories and boost the success of your business.