Latin America and the Caribbean is a growing playground for innovative digital payment products. While the region has experienced difficulties in attaining levels of growth in comparison to other global regions, Intercash has expanded its services to meet these challenges and support a variety of companies payment needs, as well as providing fintech start-ups with local solutions in the region.
Top 10 Countries by Population
Top 10 Countries by GDP
With access to local payment solutions for the LAC region, Intercash can develop a customized payment program for your business.
The LAC region refers to Latin America and The Caribbean. The term LAC covers an extensive region, extending from The Bahamas and Mexico to Argentina and Chile. The region is comprised of 33 independent countries, and consists over 650 million people. Over the last few years, the LAC region has seen an incredible expansion of payment services and the rise of some very successful fintech solutions.
The gross domestic product (GDP) for Latin America and The Caribbean is 5.9 trillion. In terms of Purchasing Power Parity, Brazil, Mexico, and Argentina accounted for over two-thirds of the region's total in 2019, while The Caribbean and North Atlantic nations represented just over 1 percent of the region's total PPP.
Latin America and The Caribbean’s economy has seen remarkable economic progress since the beginning of the century. The economic situation for many individual countries has strengthened, while living standards have improved and poverty and inequality have declined. In 2019, 155.5 million people in Latin America are expected to buy goods and services online, a dramatic increase from 126.8 million in 2016. Recent figures show that the LAC region’s e-commerce market is still rather small, in comparison with the Asia-Pacific or North American regions. With that being said, retail e-commerce sales in Latin America and The Caribbean are steadily rising. On a regional level, Brazil is the market leader in e-commerce sales, followed by Mexico and Argentina.
Despite a recent economic downturn, LAC is one of the world’s top regions in terms of growth. The region is economically dominated by Brazil and Mexico, ranking ninth and fifteenth in the world, respectively. Brazil is the largest online market in Latin America, representing over 40% of the region’s e-commerce sales, while Mexico has one of the largest mobile markets in Latin America, with one-third of all residents using smartphones. High levels of internet penetration in LAC are helping e-commerce grow at a rapid pace. However, the region is fraught with difficulty for international merchants looking to take advantage of local opportunities. With 70 percent of their e-commerce transactions only possible through locally issued cards, this makes the localization of payment methods in the key markets critical to the region's success, as it will help to improve authorization rates and the customer experience.