The expansion of international companies in Latin America to cover one of the main global markets made up of more than 600 million people is one of the great challenges, according to Rodrigo Puig-Mir, chief strategy officer at PayRetailers.
"According to Americas Market Intelligence, the volume of online sales in the Latin American market will grow 29 per cent by 2024, creating numerous business opportunities," he said.
"Despite this, monetary diversity and different consuming behaviours show uncertainty in global business plans. However, in this context, payment gateways have established themselves as a solution to technological development, assuming a greater role in recent years.
"Payment providers are increasingly important for companies with international objectives. As proof of this, experience reveals that using these platforms can elevate the annual growth of a company up to 200 per cent, as transactional processes are accelerated. The security of financial movements is reinforced."
The most recent example is 1XBet, a sports betting company operating in 50 countries around the world that experienced a commercial explosion during the pandemic thanks to local expansion. Online bets multiplied and the company was urged to integrate a payment gateway that would strengthen its international clientele.
"In their case, they opted for the payment solutions of the Spanish company PayRetailers and went from processing 300,000 dollars a month to 1,200,000 in just two months - an annual growth rate that increased to 200 per cent thanks to the payment processing and the technology offered by the Barcelona-based company," said Puig-Mir.
"These types of gateways simplify the process when purchasing a product or service between countries with different currencies, offering numerous payment methods that avoid any currency incompatibility. This is something that is very common when talking about the Latin American market.
"It is important to remember that depending on the country, specific currencies require special attention, such as those of Mexico, Brazil or Argentina. And in addition, there is also a different regulation that slows down and further complicates the expansion plan of the entrepreneur. Hence, mechanisms like gateways are essential when talking about growth.
"Moreover, payment platforms offer greater security. Faced with the fear of fraud that may exist due to ignorance of the regulations or even due to their lack of proximity to the local acquisition methods, payment gateways monitor transactions and allow second-hand control of these cross-border movements - a bundle of solutions that can lead to an increase in the annual growth rate of up to 200 per cent.
"The options that Latin America offers for business expansion are numerous, but the organisations deciding to do so must be aware of some of the difficulties they will face, such as the unfamiliarity with the local legal system, monetary diversity, and payment traditions existing within society.
"Therefore, they must look for a reliable payment gateway that, in addition to helping them expand their business in the emerging markets of Latin America, promotes their financial inclusion in the region.
"There are platforms that, like PayRetailers, offer end-customers more than 250 payment methods in Latin America, operating strategically based on the markets towards which each business must be directed, thus allowing themselves to offer secure and efficient payment solutions.
"In this way, the panorama of transactions throughout the region is updated and renewed, allowing for economic growth and the emergence of new international business opportunities." Despite the global inflation caused by the invasion of Ukraine and the slowdown in the economy of the main powers, countries such as Argentina forecast an increase in GDP in the coming years.
In addition, it is estimated that in 2025, the e-commerce market throughout Latin America will exceed $105.5bn, which would mean a growth of more than $20bn in a few years.
"This represents a unique opportunity for companies wanting to export their business model and replicate their business success outside their borders in a safe way, with a trusted partner that helps them throughout the process," added Puig-Mir.
