The Insight For services like SVODs to acquire and retain Latin American subscribers, they must ensure their ability to bill recurring payments aligns with local realities.
The Data Unlike other world regions, accepting only credit cards won’t achieve optimal results in LATAM, where credit cards don’t have the same consumer penetration. Payment methods like debit cards, prepaid cards, and digital wallets are growing in market share. For example:
Diving deeper into the data: while credit cards dominate the Mexican e-commerce payments space with 47% of all transactions, debit cards have much stronger uptake than credit cards. There are 0.99 debit cards in circulation per capita, compared with 0.19 credit cards.
Our Approach When expanding into LATAM territories, we work with our clients to consider payment options at the local level, and implement processes to maximize acquisition and mitigate failed transactions.
Sources: Ebanx, Americas Market Intelligence, JP Morgan