Miami, May 10, 2018—Americas Market Intelligence—the premier market intelligence and strategy firm for Latin America—has just published a free whitepaper analyzing the state of contactless payments in Latin America, now available for free download on AMI’s website.
Contactless technology allows consumers to tap or wave their card or mobile device over a contactless terminal —no need to swipe or insert a chip card, or, in many cases, enter a PIN or sign. The analysis reveals that the migration to contactless cards is the most competitive strategy for reducing the use of cash and accelerating the adoption of the next-generation payment technologies, including mobile phones, wearables, and other IoT devices.
Commissioned by Visa and entitled The State of Contactless Payments in Latin America, the 40-page whitepaper offers an in-depth exploration of the key challenges surrounding the adoption of contactless payments in the region. Key findings include:
- 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
- Today, nearly $1 trillion in retail purchases are made in cash in the region every year—yet this cash spend is inaccessible to banks
- 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
The State of Contactless Payments in Latin America is designed primarily for payments professionals and financial institutions to educate them on contactless.
“Contactless payments allow for a faster payment experience to replace the use of cash, and they are the foundation of new payment uses by combining tokens, biometrics, NFC and other available platforms to improve the user experience,” says Ricardo Tafur, Vice President, Consumer Products for Visa Latin America & the Caribbean.
The State of Contactless Payments in Latin America is available for complimentary download on AMI’s website: click here to access it.
About Americas Market Intelligence
Americas Market Intelligence (AMI) is the premier market intelligence and strategy consultancy for Latin America, providing powerful research insights for companies to succeed in a wide range of verticals in the region, including payments, healthcare, logistics, mining, oil & gas, infrastructure, consumer goods and the industrial sector. Its customized research reports deliver data-based clarity and far-reaching strategic direction based on expert sources.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visacorporate.tumblr.com, @VisaNews, @VisaNewsLatam.