BARCELONA, Spain--(BUSINESS WIRE)--Payment technology solutions have found fertile ground for expansion in Latin America given the lack of financial inclusion in the region, which in turn has put firms in this industry in a favorable business position. Latin America is home to around 300 million digital shoppers, a figure that is expected to grow by more than 20 percent by 2025.
PayRetailers, the main LATAM Fintech's payments specialist, announced the opening of new offices in Peru, a move that will help the company be closer to its customer base and consolidate its presence in one of the fastest growing markets. Moreover, it will enable the company to serve strategic markets throughout Latin America and innovate alongside dynamic financial service providers to offer differentiated and innovative digital experiences to its customers.
Given the myriad opportunities in the region, the company continues to expand its team and technology to build a robust and inclusive payments infrastructure. With a broad offering of card payment solutions and local alternative methods for global businesses expanding into Latin America, today PayRetailers has teams of more than 20 different nationalities and operations in more than 15 countries in Europe and Latin America.
New strategic acquisitions within the region
The company recently acquired two online payment platforms, Paygol of Chile and Pago Digital of Colombia. The two acquisitions strengthen PayRetailers' broad and deep move to tap into the potential of e-commerce payments in Latin America. The agreement gives Paygol and Pago Digital access to PayRetailers' extensive technical expertise, marketing resources and financial investment to grow at a scale.
Understanding the complexities and challenges specific to the continent's markets is one of the biggest challenges the companies looking to expand their operations in the Latin American market need to face. The acquisitions reinforce PayRetailers' position as the leading Fintech payments specialist for Latin America and efforts to simplify B2B e-commerce across the region.
Paygol CEO, Carlos Varas, said, "Paygol believes passionately in the power of local knowledge to bridge international borders. It's a notion we share with PayRetailers as we move forward together to truly unlock the potential of e-commerce businesses across Latin America."
Pago Digital CEO William Talero said, "Pago Digital was founded on a vision of simple and accessible online payments. We have come a long way in 10 years and now we are excited to climb to the next level with PayRetailers: sharing technologies, experience and expertise to bring our customers ever greater opportunities."
Royal Park Partners acted as exclusive financial and strategic advisor to PayRetailers on the acquisition of Pago Digital.
Challenges Fintech companies face for the sake of financial inclusion in Latin America
The Fintech ecosystem in Latin America is performing better year after year; by 2020, there were close to 1,500 parties, including startups, regulators and traditional companies, such as banks. As new technologies such as cryptocurrencies or the metaverse take hold, these organizations have greater challenges to take on as part of the fourth industrial revolution.
According to a survey published in January 2022 by VISA, the growth of the Fintech ecosystem in Latin America can be confirmed by taking into account the 52% increase in financing to the sector.
Latin America experienced the fastest growing e-commerce retail sales boom in the world during 2020. In Mexico, e-commerce grossed nearly 316 billion pesos (US$15 billion) during the year, representing 81% annual growth and accounting for 9% of total retail sales, according to the Mexican online sales association AMVO. The pandemic showed Mexico what it means to be unprepared for the future, making major changes in the daily lives of Mexicans, living in a reality where going out on the street was no longer an option for many people.
To meet the demand, during 2022, Fintech and non-banking companies have been launching solutions such as e-wallets, credit cards and prepaid cards, especially in underserved markets. Digital payments, including through new forms such as QR codes, instant payments or contactless payments, should proliferate among buyers and sellers.
Also of note are regulatory updates and adoption of the blockchain ecosystem in Chile, Argentina, Brazil, Colombia, Costa Rica, El Salvador, Mexico, and Venezuela. El Salvador becomes the first Latin American country to adopt Bitcoin as an official currency as of September 7, 2021, a movement that has been gaining momentum throughout Latin America. As regulation matures around the world, Latin America is proving to be a thriving ground for blockchain development.
With a focus on expanding its customer base and exponentially elevating product reach over the next decade, PayRetailers aims to strengthen verticals such as digital services and e-commerce. Its strategy has allowed it to offer services and occupy spaces not served by traditional payment providers, a player that has to be watched closely in the coming years.
PayRetailers is a leading online payment services provider, dedicated to creating a fast and simple payment process for merchants and shoppers. The company offers a full range of payment solutions to help e-commerce companies accept online payments through a single API integration.
A clear understanding of consumer behavior and spending in their specific sector will be the difference between success and failure for merchants looking to expand internationally across certain e-commerce verticals. By accepting local payment methods, PayRetailers allows anyone to make online purchases, even if they don't have credit or debit cards.
PayRetailers is headquartered in Spain, with regional offices in Mexico, Argentina, Brazil, Chile, Colombia, Uruguay and Peru.