- Paytech is rewriting Latin America’s economy at unprecedented levels and Kushki will discuss growth in the region during his participation in the Congress.
Latin America is the region with the largest number of these types of companies, approaching 10,000 by the end of 2021. Brazil (771), Mexico (512) and Colombia (279) are the countries with the highest development of the Fintech ecosystem, which is key to economic recovery, driven by the digitization of business.
With a population over 665 million people and a banking penetration of 55%, there is a huge opportunity for global companies that want to enter the region and connect with local consumers who have never shopped online.
Paytechs are boosting the economy through three key points: they complement the channels that traditional banking has historically offered, generating a better experience for the consumer; they have increased access to the financial system for thousands of people who were previously excluded, through virtuality; and, finally, they are a source of job creation and a boost to e-commerce.
As part of the 7th America Digital Latin American Congress of Business and Technology 2022, Rodrigo Quijada, VP Market Development at Kushki, will give the conference How paytechs are energizing the economy in Latin America, in which he will analyze the Chilean market, which is growing in an interesting way in the region.
Chile, an ideal market for paytechs
Regionally, Chile is often considered the most advanced market in Latin America in terms of overall development. With about $15,000, its GDP per capita is almost double that of Brazil, and its stable currency and macroeconomic environment make it attractive to investors.
The country has 3 key elements that make it highly relevant to the payments ecosystem:
- Chile has led in banking and smartphone penetration, debit cards are universally available, and it is the first market in Latin America in contactless payment penetration.
- Cash use is low, with 27% of retail volume in 2021.
- E-commerce in Chile is strong, experiencing pandemic growth, growing 52% and amassing $16 billion in 2021.
Therefore, Chile is one of the most relevant markets due to its growth potential, as well as the maturity of the payment ecosystem, and that is why Kushki, a leading paytech in payment solutions technology that accelerates business in multiple markets in Latin America, decided to bet on this market by buying QVO in 2019.
Its growth has exceeded 100% annually since its arrival and in 2022 they obtained the authorization of existence in the Commission for the Financial Market (CMF) to start operating as an acquirer.
“We see Chile as a market with a lot of potential for further expansion: during the first half of 2022 alone we grew by more than 100%, making it the fastest growing country for the company. The acquiring service, in the near future, will continue to complement our modern payment infrastructure to facilitate digital payment transactions” comments Rodrigo Quijada, VP Market Development at Kushki.
Chile is undergoing a process of legislation in the payment industry through a Fintech Law. This law is considered one more reason to see Chile as a good market according to industry players, as it will end existing gaps and uncertainties due to non-regulation, without limiting free competition and encouraging the entry of new actors and at the same time, the implementation of more technology.
“In the five countries where we operate there are differences related to regulation, but the need of the consumer and businesses is the same throughout Latin America: to have a payment infrastructure that offers a solution with high performance standards and guarantees the security of transactions made through digital payments” concluded Kushki’s spokesperson.
Kushki, the world-class payment platform that connects Latin America through payments, helps businesses reduce the cost and complexity of payments online while improving acceptance rates and reducing fraud. With less than a decade of existence. Kushki operates locally in 5 countries and leverages local teams to deliver customized solutions for clients in each country.
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