Data collected by Rapyd shows that digital payment preference is a main factor for consumers in LATAM, Social Commerce is rising as a driver in eCommerce, and digital banking create a shift away from traditional banking
LONDON and MOUNTAIN VIEW, Calif., Dec. 16, 2021 /PRNewswire/ -- Rapyd, a global Fintech-as-a-Service company, released the results of a new survey exploring the adoption of digital finance tools and eCommerce in Argentina, Colombia, Mexico, and Brazil.
Despite the region's large "unbanked" population, the survey found that among those with active bank accounts there is a strong and growing preference for digital services, setting the stage for continued growth across the region. Usage of bank apps and online banking services is high in LATAM, with 98% of Brazilian, 94% of Mexican and Colombian, and 89% of Argentinian bank customers stating regular usage.
The trend is not restricted to bank-supplied services, with the region also demonstrating extremely high usage of non-bank payment apps. 96% of Mexicans and Brazilians, 87% of Colombians, and 84% of Argentinians regularly use applications such as PayPal, Modo, MercadoPago, and others.
The survey also found rapid adoption of social commerce and a marked increase in purchases. Over 50% of consumers surveyed have made social commerce purchases, and 40% identified the greater variety of payment methods as a benefit for choosing social commerce.
"Latin America is quickly emerging as one of the most digital-savvy markets for financial services," said Eric Rosenthal, VP of Rapyd for the Americas. "Whether you're a company already operating there or you're poised to enter the market for the first time, it would be unwise to ignore the shifts in consumer behavior. Our data strongly indicates that businesses with an eye on LATAM should meet consumers where they are increasingly operating – digitally."
Additional findings further demonstrate the rising importance of digital and mobile-first financial services, as consumers increasingly rely on them far above traditional banking methods.
The study is the first of several that Rapyd will be conducting in LATAM to better understand shifts in consumer behavior. Over 1,000 active bank and banking services users from Mexico, Colombia, Argentina, and Brazil took part in this survey. The complete report is available here.
About Rapyd
Rapyd is the fastest way to power local payments anywhere in the world, enabling companies across the globe to access markets quicker than ever before. By utilizing Rapyd's unparalleled payments network and fintech as a service platform, businesses and consumers can engage in local and cross-border transactions in any market. The Rapyd platform is unifying fragmented payment systems worldwide by bringing together 900-plus payment methods in over 100 countries. Rapyd's investors include Stripe, General Catalyst, Oak HC/FT, Coatue, Tiger Global, Durable Capital, Target Global, Fidelity Management and Research Company, Altimeter Capital, BlackRock Funds and Tal Capital. To learn more about the company that is accelerating the fintech as a service revolution, visit www.rapyd.net, read our blog, or follow us on LinkedIn and Twitter.
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