As a result, it’s estimated that nearly US$1 trillion in retail cash payments are made every year in Latin America — a cash flow that the region’s banks can’t access.
But contactless payments could be the key for banks to finally tap into that powerful stream of cash.
Recently, Americas Market Intelligence (AMI) was commissioned by Visa to look at contactless payments and their potential in Latin America.
The result was a detailed whitepaper entitled The state of contactless payments in Latin America, now available for source free download.
Developed as a guide for Latin America payments professionals and addressing the issue from the perspectives of acquirers, issuers, merchants and consumers, source link The state of contactless payments in Latin America offers a variety of key takeaways, including:
- Contactless is still in an early stage in Latin America, with less than 1% of all card-present transaction volume being made with a contactless payment method
- Contactless cards are the best payment method for banks to access these cash transactions, because they offer a fast, frictionless, and secure payment experience
- For contactless payments to scale, the payments industry in Latin America must work collectively to:
- Issue contactless credit and debit cards
- Ensure that a well-oiled contactless acceptance network is in place
- Adequately train and motivate merchants
- Educate consumers on the benefits and utility of contactless payments
- If Latin America’s payments ecosystem does not converge around contactless, competitors could enter the market with an alternative standard—like QR codes—that would make the POS system obsolete and undermine the region’s entire POS-based payments infrastructure
Click on the icon below to download your free copy of the whitepaper to better understand contactless payments and their potential for transforming the payments landscape in Latin America.