Cash keeps dominating at the point of sale in Latin American countries like nowhere else in the world
Latin American countries prefer cash over e-payment: new study. Source: unsplash.com
Payment methods in Latin America are changing along with global trends, according to Worldpay from FIS research. The research found that cash accounts for 58% of POS, compared to 15% in North America and 30% globally.
The statistics reflect the fact there is a large unbanked or underbanked population or limited POS e-payment acceptance. Furthermore, Latin American consumers are mandated to pay high banking fees, having permanent concerns about fraud.
Along with that, smartphone penetration among consumers has grown at a much higher rate than those using traditional financial services. This way, countries of Latin America express an interest in digital payments but the countries have a lack of infrastructure to support it.
The study unveiled a cash influence on e-commerce, as well. For instance, PostPay services allow consumers to purchase electronically while ultimately completing the transaction with cash. PostPay accounts for 8% of regional e-commerce spend, while cash on delivery represents an additional 5.8%.
According to the research, by 2023, e-commerce in Mexico is expected to grow at a CAGR of 12%, while in Argentina analysts forecast a 19% CAGR over that period. In Peru, cash is accounting for 60% of spend, however, the country is moving towards e-commerce due to increasing mobile penetration.
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