What's Happening?
dLocal, a payment platform, has released a report emphasizing the critical role of alternative payment methods (APMs) in Latin American eCommerce. The report, based on a survey of over 1,000 consumers across several countries, reveals that nearly 70% of LatAm shoppers prioritize accessible payment solutions, with APMs projected to surpass card payments by 2026. The findings underscore the necessity for merchants to offer trusted local payment options to succeed in the region. The report also notes the growing influence of young, digital-first consumers and the favorable perception of Chinese eCommerce brands.
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Why It's Important?
The shift towards alternative payment methods in Latin America represents a significant change in consumer behavior, impacting global eCommerce strategies. As APMs become more prevalent, merchants must adapt to meet consumer preferences, potentially driving innovation in payment technologies. This trend offers opportunities for global brands to expand their reach in LatAm, a region projected to contribute significantly to global economic growth. Understanding these consumer attitudes is crucial for businesses aiming to capture market share and build loyalty in this dynamic environment.
What's Next?
Merchants operating in Latin America are likely to increase their focus on integrating APMs into their payment systems to align with consumer expectations. dLocal's 'One dLocal' model, which simplifies access to over 900 local payment methods, may become increasingly attractive to global merchants seeking seamless market entry. The continued rise of digital-first consumers and the influence of Chinese brands could further shape the competitive landscape, prompting businesses to refine their strategies to cater to these evolving preferences.
