Exploring the Regulatory Landscape in LATAM’s Payments Industry
BARCELONA, Spain–(BUSINESS WIRE)–#Latampayments–Jonathan Wilson, Chief Risk Officer at PayRetailers, delves into the continuously evolving regulatory terrain within LATAM’s payments industry and its implications for fostering a favorable business environment.
By The Paypers
The Current State of the Payments Industry in LATAM
Jonathan Wilson opens the conversation by shedding light on the current state of the payments industry in Latin America (LATAM). He highlights the thriving growth of Alternative Payment Methods (APMs) such as real-time bank transfers, cash-to-electronic money conversions, and digital wallets, which are rapidly eclipsing conventional credit and debit card usage. This shift is primarily driven by the younger generation, reflecting their reduced reliance on traditional banking services compared to their older counterparts.
Shaping the Future with Real-Time Payments and Open Banking
Looking ahead, Wilson discusses how the adoption of real-time payments and Open Banking offers promising opportunities to reshape the future of payments in LATAM. Real-time payment solutions are applauded for their ability to provide instant and seamless transactions, thereby simplifying payment experiences for both consumers and businesses. Concurrently, Open Banking fosters collaboration and innovation through secure data sharing between financial institutions and third-party providers, enabling the development of innovative payment solutions and personalized services, ultimately enhancing the overall payment ecosystem in the region.
The Role of Regulations in Cross-Border Payments
Wilson emphasizes the significance of regulations in providing consumers with confidence that their money is secure, thus driving adoption of digital payment technologies. Regulations counter the perception that unregulated spaces lack control and security. They have historically played a pivotal role in fostering consumer and investor trust in emerging payment technologies and neobanks, thereby contributing to the growth of the payment industry.
Furthermore, Wilson underscores the potential of regulations in simplifying cross-border transactions. Complex payment processes can lead to customer distrust and frustration. The right payment processor, such as PayRetailers, can eliminate friction through its extensive portfolio of payment methods, network of partners, and advanced technology, enabling businesses to expand effectively within the region.
PayRetailers’ Position in the LATAM Payments Market
PayRetailers is positioned as the payment processor of choice for merchants looking to grow their business across borders and locally in LATAM. It simplifies the complex landscape of payment integrations, currency conversions, and fund settlements across borders, all with a single API integration. With access to more than 250 payment methods across over 12 markets, businesses can efficiently tap into the LATAM market, driving digitalization and fostering growth.
Wilson touches upon the importance of local presence in key LATAM countries for understanding local consumer trends, emerging businesses, and building relationships with banks. He also highlights the unique regulatory challenges in LATAM, emphasizing the need for specialized teams in each country of operation to stay abreast of regulatory changes and digital demands.
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