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PayRetailers strengthens its operations in Latin America
Tuesday, 10 May 2022
Payment technology solutions have found fertile ground for expansion in Latin America, given the lack of financial inclusion in the region, which has put firms in this industry in a favourable business position. Latin America is home to around 300 million digital shoppers, which is expected to grow by more than 20% by 2025.
PayRetailers, the main LATAM FinTech payments specialist, announced the opening of new offices in Peru, which will help the company be closer to its customer base and consolidate its presence in one of the fastest-growing markets. Moreover, it will enable the company to serve strategic markets throughout Latin America and innovate alongside dynamic financial service providers to offer differentiated and innovative digital experiences to its customers.
Given the myriad opportunities in the region, the company continues to expand its team and technology to build a robust and inclusive payments infrastructure. With a broad offering of card payment solutions and local alternative methods for global businesses expanding into Latin America, PayRetailers has teams of more than 20 different nationalities and operations in more than 15 countries in Europe and Latin America.
Recently, the company acquired two online payment platforms, Paygol of Chile and Pago Digital of Colombia. The two acquisitions strengthen PayRetailers’ broad and deep move to tap into the potential of e-commerce payments in Latin America. The agreement gives Paygol and Pago Digital access to PayRetailers’ extensive technical expertise, marketing resources and financial investment to grow at a scale.
Understanding the complexities and challenges specific to the continent’s markets is one of the biggest challenges the companies looking to expand their operations in the Latin American market need to face. The acquisitions reinforce PayRetailers’ position as the leading FinTech payments specialist for Latin America and efforts to simplify B2B e-commerce across the region.
Paygol CEO Carlos Varas said, “Paygol believes passionately in the power of local knowledge to bridge international borders. It’s a notion we share with PayRetailers as we move forward together to truly unlock the potential of e-commerce businesses across Latin America.”
Pago Digital CEO William Talero said, “Pago Digital was founded on a vision of simple and accessible online payments. We have come a long way in 10 years and now we are excited to climb to the next level with PayRetailers: sharing technologies, experience and expertise to bring our customers ever greater opportunities.”
Royal Park Partners acted as an exclusive financial and strategic advisor to PayRetailers on the acquisition of Pago Digital.
The FinTech ecosystem in Latin America is performing better year after year; by 2020, there were close to 1,500 parties, including startups, regulators, and traditional companies, such as banks. As new technologies such as cryptocurrencies or the metaverse take hold, these organisations have more significant challenges as part of the fourth industrial revolution.
According to a survey published in January 2022 by VISA, the growth of the FinTech ecosystem in Latin America can be confirmed by taking into account the 52% increase in financing to the sector.
Latin America experienced the fastest growing e-commerce retail sales boom in the world in 2020.
In Mexico, e-commerce grossed nearly 316 billion pesos (US$15 billion) during the year, representing 81% annual growth and accounting for 9% of total retail sales, according to the Mexican online sales association AMVO. The pandemic showed Mexico what it means to be unprepared for the future, making significant changes in the daily lives of Mexicans, living, in reality, where going out on the street was no longer an option for many people.
To meet the demand, during 2022, FinTech and non-banking companies have been launching solutions such as e-wallets, credit cards and prepaid cards, especially in underserved markets. Digital payments, including through new forms such as QR codes, instant payments, or contactless payments, should proliferate among buyers and sellers.
Also of note are regulatory updates and the adoption of the blockchain ecosystem in Chile, Argentina, Brazil, Colombia, Costa Rica, El Salvador, Mexico, and Venezuela. El Salvador becomes the first Latin American country to adopt Bitcoin as an official currency as of September 7, 2021, a movement gaining momentum throughout Latin America. As regulation matures worldwide, Latin America is proving to be a thriving ground for blockchain development.
With a focus on expanding its customer base and exponentially elevating product reach over the next decade, PayRetailers aims to strengthen verticals such as digital services and e-commerce. Its strategy has allowed it to offer services and occupy spaces not served by traditional payment providers, a player that must be watched closely in the coming years.