How’s the digital transformation going in South and Central America? Pretty good actually.
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.