Technology and innovation have provided an incredible impetus to digital transformation in Latin America’s payment industry. With a total addressable market of over 600 million consumers that generates close to 6 Trillion dollars of the GDP, Latin America has opened doors for exciting opportunities in the payment industry.
In today’s increasingly digital world, a strong payment infrastructure is critical, especially for businesses looking to offer seamless and secure payment experiences to their customers. From accepting online payments to managing transactions and payment processing, a robust payment infrastructure is key to ensuring smooth financial operations. With the rise in digital adoption, cyber security threats and risks of payment fraud are also, unfortunately, on the rise. What are the best ways to tackle this? In the following sections, I have listed down some of the best practices for building a secure and reliable payment infrastructure. Read on.
For decades, money transfers received from people working abroad have acted as lifelines of development for many emerging nations. Given their impact, the socioeconomic benefits of MSBs (money service businesses) have been widely acknowledged. Typically, MSBs permit their customers to transfer money, and exchange currencies or cash cheques without needing to rely on bank accounts.
Payment infrastructure evolves on a minute-by-minute basis. It is what makes payments such an exciting field to work in and a great environment for anyone who likes to continuously innovate and learn, especially about how the payment infrastructure is evolving to meet the needs of global businesses.
Increasing globalisation has presented huge economic opportunities for the people of South Asia with the digitalisation of cross-border payments
Increasing globalisation has expanded huge economic opportunities for people residing in South Asia. Many economies here are driven by remittances which also form a sizable portion of their GDPs. People working in different parts of the world send money back to their families residing here.
There are numerous studies that discuss what Gen Z—loosely deﬁned as those who were born between 1997 and 2012—wants. While the majority of these studies cover a wide range of topics, there are a few aspects that they tend to ignore, including confusion, the need for inspiration, safe risk-taking, and impulsive decision-making.
Latin America is one of the most exciting regions to follow for innovation in the financial sector and the emerging fintech ecosystem. Updates to infrastructure through open banking initiatives, embedded finance, Banking-as-a-Service (BaaS), and more are helping to bring payments and banking to those underserved by the existing financial system.
There is no doubt that globalisation has been an incredible driving force in recent decades, powering businesses to transcend national and international borders. But the beneﬁts of globalisation are also accompanied by certain responsibilities such as the need to comply with local laws. Without comprehensive compliance, it is merely a matter of time before any company’s business operations begin to unravel.
Today, the growing global banking solutions market is like an ocean replete with diverse products and players. As financial firms across the globe strive to capture a major share of this market, the words of Japanese writer Ryunosuke Satoro spring to mind:
As the travel and hospitality industries across the world recover from the impact of the pandemic, online travel agents (OTAs) are playing a pivotal part in the revival. Their eﬀorts directly beneﬁt millions of SMEs in the global travel and tourism trade. The rapid rise of OTAs presents a striking picture of the era of global digital transformation.
According to industry predictions, real-time payments (RTP) represent the future of the evolving payments ecosystem. Influenced by the pandemic, RTP’s share of transactions doubled in the US in 2020, as reported by ACI Worldwide. By 2025, the report estimates that RTPs will have a CAGR of 43.4% with 6.2 billion extra transactions.¹
Why partnerships between ﬁntech & traditional Banks are a winning proposition for cross-border payments
As our society becomes more globalized, there will soon be no borders for capital. Globally, the amount of money being sent as remittances has seen signiﬁcant growth as a direct result of increased migration as well as expanded business activity on a worldwide scale.
The world of cross-border payments is complex, to say the least. When such payments or remittances need to be made across 100+ countries across the globe, the complexity is further compounded.
Worldwide, as steps are underway to boost ﬁnancial inclusion, the measures are beneﬁtting millions of underbanked people. Finally, underserved cohorts are gaining access to savings accounts, investments, loans, and other ﬁnancial products. To achieve an objective based on user convenience, technology is being used to drive ﬁnancial inclusion across all geographies, including remote regions.
Contrary to what many people automatically assume, the beginning of any partner relationship in the payments industry is not only about KYC and compliance. Although KYC is a cornerstone of our industry, and we won’t survive long if we don’t get it right, the start of the relationship is much more.
In a global economy, the ability to make borderless payments is essential for businesses and consumers alike. Moving money successfully across borders is fundamental to international commerce as it drives and sustains economies in developed and emerging markets. Cross-border payments are the oil that keeps the globalization machine going.
Over the last few years, there’s been a lot of buzz around interoperability. Getting payment products to ‘speak to each other’ or be interoperable is one of the biggest challenges facing digital payments.
Global payments will continue to grow and evolve as borders become increasingly irrelevant to consumers, whether you’re in the Business-to-Consumer or Business-to-Business market. While most people think of e-commerce and online shopping in the Business-to-Consumer market as the most relevant, Business-to-Business global payments have been growing rapidly.
The global digital payments market is evolving rapidly. Africa is one of the key regions at the forefront of this evolution with digital payments methods steadily rising across the region.
The mobile wallet market is slated to increase at a 25% CAGR between 2022 and 2028. One of the major drivers for this universal rise is the increasing number of smartphone users globally. As per Statista, global smartphone subscriptions in 2022 have already *surpassed six billion, with the highest number of subscribers in China, India and the US.
For us, International Women’s Day is not just a celebration of women’s history but also an opportunity to start a dialogue. This year we did exactly that and discovered what our global workforce has to say about breaking stereotypes and enabling equality.