When it comes to fintech and e-commerce, Latin America is a treasure trove of opportunities. In the first episode of the Latin America Summit Podcast, we began to explore this, explaining to you what’s behind investors’ bullish attitude towards the region.
Now, let’s talk about the era of digital consumption we’re living in; where money can be easily accessed via mobile phone, and where a device in our pocket and a single touch of a screen unlock a world of financial transactions and possibilities.
That’s is what our second episode is about: How increasing digitization is breaking down barriers to Latin American consumers (or how cash migrated to our mobile phones).
How about a sneak peek?
Growing internet penetration and smartphone adoption have by default fueled the digitalization of consumption. E-commerce keeps growing in the region faster than in other emerging regions, and, for the first time in 2021, e-commerce consumption through the mobile phone has surpassed the one made through desktops.
According to data from EBANX and the consultancy Americas Market Intelligence (AMI), based on 13 markets in the region, 55% of LatAm’s online purchases were made through cell phones in 2020. In 2021, the trend gained steam, with almost 60% of e-commerce volume in the region being paid through a smartphone.
AMI’s estimations show that, in 2021, access to digital accounts by banks or fintechs has reached 88% of the adult population in Latin America. Even with this record financial inclusion and the fast growth of credit and debit card penetration in the region, alternative payment methods still remain high in the consumers’ eyes, reaching a share of 30% regionwide in e-commerce. And now e-wallets and instant payments started to get traction, representing 18% of purchases in e-commerce in the region this year.
This wave of money migrating to the cell phone is being surfed all over Latin America. This new consumption habit becomes abundantly clear when we look at the success and momentum digital-first brands are seeing in the region.
This is the case with delivery apps Rappi — a Colombian startup that was born in 2015, and that is now present in over 250 cities in the region, not only with delivery but digital banking solutions – and iFood, the leading food delivery in Brazil, with a market share of 75% according to research institute QualiBest, that is also exploring other business verticals, including credit and digital accounts to its thousands of partner restaurants.
Well, Tijana Jankovic, country manager of Rappi in Brazil, and Diego Barreto, iFood’s CFO & VP of Strategy, are two of the guests of Latin America Summit Podcast’s second episode, together with John Price, managing director at the consultancy AMI.
They are instigated to discuss digital consumption by the hostess and EBANX’s Marketing Manager, Chelsey Peña, and co-hostess Amanda Jacobson, Chief of Staff at Oyster Financial, a fintech that is disrupting the financial services for SMBs in Mexico and who knows, first hand, how impressive is this ongoing revolution in the region.
Wanting to know what all these experts have to say about digital consumption and money made digital? Listen to Latin America Summit Podcast on your favorite platform: Spotify, Deezer, Google Podcasts, and Apple Podcasts.
Every week, a new episode of the Latin America Summit Podcast will be available on all the leading platforms, as well as on the event’s website and LABS.