Paving the way for a better future in Latin America and the Caribbean
Digital Payments have become an indispensable part of the economies in Latin America and the Caribbean and has created many business opportunities for budding and established companies. Statistics indicate that nearly 70% of the adult population in Latin America is either unbanked or under banked and this sector represents a market of approximately$34 billion per year. This presents a huge opportunity for the global banking industry which has seen only moderate growth during recent times.
There are two major types of companies that will benefit from this digital boom: FinTech enterprises that have a sizeable presence in the region, and small-to-medium-sized businesses (SMBs) who are able to leverage the advantages of mobile banking and payments. FinTech solutions enable SMBs to reach customers in rural areas and offer cost-effective solutions to customers as compared to traditional banking services.
Some of the key challenges that SMBs may have to overcome to capitalize on this market are:
- The need for an easy user interface for the entire customer Eco-system.
- The regulatory environment for digital payments in Latin America and the Caribbean is still volatile and new regulations are needed to assure SMBs that their digital payments are secure.
- There is an urgent need for predatory practices to stop, which endangers progress for SMBs and destabilizes business growth in the region.
- Finally, security concerns of online payment platforms need to be addressed.
If these challenges can be overcome, business opportunities in the region for companies are huge. At a more technical level, the focus on tokenization in digital payment systems could be the key to growth in the region as it will allow companies and banks to adopt similar systems worldwide.
TraQiQ offers digital solutions to help large corporations across the world serve their customers better. TraQiQ’s cutting edge FinTech and AI-driven solutions have been deployed with leading multi-national customers around the world and are helping to increase customer loyalty, improve profitability and drive efficient financial transactions.