Surely at some point you have thought about expanding your business to Latin America, doubts, fears and barriers will have assailed you that finally made you forget about the subject.
Nothing is further from reality, Latin America is at a historic moment. This year it is expected that the continent will manage to mature its markets even more, something important because the fruits that are harvested in the coming years will largely depend on it. The reality is that Latin America is a region full of opportunities for Spanish and Portuguese companies. With more than 654 million inhabitants, a young population and an extremely positive assessment of products from Spain and Portugal.
Today it is possible to sell in Latam, thanks to the facilities that this market gives us where you can sell:
- No local entity.
- Accepting currency and local means of payment.
- Receiving sales in the currency and country that the customer wants.
- Through a unique integration.
It is important for businesses to understand that in order to appreciate the potential of a region like Latin America, they must take into account that:
- In many countries, bank penetration is low and alternative means of payment are used.
- Have a local connection to achieve an acceptable conversion, in many countries most cards do not work outside the country.
- Locate the price of the products in the local currency.
- Fraud depends a lot on the type of product you sell, it is not always higher than in Europe.
- The price of your products should not be lower than in Europe, sometimes even higher.
- There are more and more solutions that help sell more in Latam, from cross border payment methods (that help you sell locally), companies that help with local Marketplaces, logistics, anti-fraud, there are more and more solutions that help sell in the region.
- It is very important to have the services of companies that know the region well and advise you correctly.
The opportunity is not only in offering services in Latam, or sending items, there is also a great opportunity in the tourism sector, helping visitors from Latin America who come to our country to buy items, book hotels, event tickets, Tourist tours, from their homes, comfortably and without having to pay high commissions, facilitating this is an advantage for both buyers and companies, which maximize the return on their operations in a substantial way.
All this is possible with an API integration with a payment provider that helps you connect with local payment methods that manage fraud effectively and guarantee compliance with local regulations and taxes.
Be international, be local
There are success stories with much higher numbers in adoption than any region in the world, such as Pix, a means of payment created by the Central Bank of Brazil that allows the smartphone to be converted into a payment instrument using QR technology in real time and securely, with any bank or local wallet, which combines convenience with financial inclusion, one of the great challenges of the region, and which has already surpassed cards as the most used means of payment online. It also has more than 400 Million Pix Keys and more of 110 Million Unique Users, all this in a country with a population of 213 million inhabitants, in just under a year.
If you want to sell in Brazil you must have Pixbut it is that in Peru we have Pagoefectivo, in Mexico Oxxo, 7 eleven and Spei, in Chile Servipag, Mach or Multicaja, in Argentina Rapipago and Pago Fácil, or knowing that financing purchases in real time is possible with cards in Chile and Argentina without surcharges for trade.
Being able to understand the payment ecosystem, what is convenient and how from a credible partner who knows the market is fundamental, along with the rest of the strategies necessary for the success of an e-commerce it is true that in Latin America it acquires greater relevance and that’s why we created Latam Digital Bridgeto help digest so much information and that the landing is not forced, but calm.
The Cross border as a strategic tool for expansion.
The creation of more and more cross-border payment systems in Latam, and the acceleration in the digitization of companies, together with the pandemic, created a moment where the signals told us that we should explain that it is possible for a Spanish or Portuguese company to expand to Latin America, and also the chances of success will be the same or greater than in territories, not so related to our Latin culture.
In addition, being able to start an operation quickly, without large financial outlays, makes a cross border operation not only in an expansion strategy but also in a market study in real time, of the market potential, even for the strategy of physical points of sale in case it is part of the international expansion strategy.
We spent years helping American, Chinese, and German companies to be able to sell in Latin America, and we thought, how is it possible that nobody is doing this in Spain and Portugal? That’s where the idea of creating a company that only works with this territory, which knows suppliers, regulators, and the ecosystem very well and helps to help Spanish and Portuguese companies grow in this territory.
There are reliable, proven systems that have been in operation for years, and allow us to sell in Latin America and receive funds in our countries and currency, this being a competitive advantage that companies should not miss, there are 654 million opportunities.
