REGIONAL REVIEW
The B2B market for SaaS / cloud has become a mega-opportunity in Latin America
Mexico and Colombia where cross-border grows the most ,” added Etcheverry .
High-ticket SaaS / cloud payments in LATAM and Africa emerge as a ‘ mega ’ opportunity
In Latin America , it is in its early stages when compared to traditional instalments , however , it has a 300 % growth year-over-year in 2022 and it should keep pace , tapping into the region ’ s diverse payments landscape . Additionally , it will stand as an alternative to consumers who don ’ t have a credit card or a high enough credit limit but want to split their payments .
“ The meteoric rise of alternative payments in LATAM is a direct consequence of financial inclusion and consumer preference for the new , instant payment technologies across the region ,” said Juliana Etcheverry , Director of Strategic Payments Partnerships at EBANX .
Meanwhile , cash-based payments seem to be reaching a plateau in Latin America ’ s digital commerce sector , after years of intense digitisation . In 2018 , cash-based payments represented almost 20 % of online purchases in the region and now it only accounts for 8 %, per AMI . This is a sign that cash is moving to digital and its traditional adoption , with vouchers used to pay with cash , should decrease in the upcoming years .
Other key findings from the Beyond Borders 2022 / 2023 study include :
LATAM ’ s cross-border digital commerce sales will boom through 2025
The cross-border online market in Latin America is back on its high-growth track .
In 2022 , almost 75 % of Latin Americans have bought online and this share of the digital market is expected to expand almost 45 % by the end of the year – nearly 10 % higher than the domestic digital commerce ’ s ( 36 %), according to AMI . This trend should continue over the next several years , with international online sales in LATAM accelerating at an average of about 34 % per year through 2025 .
“ Latin America accelerates above global averages in all digital verticals and the region has a very interesting combination of good cross-border share while keeping high growth rates . While smaller markets have the largest crossborder portion of their overall digital commerce , it ’ s in the larger ones like Brazil ,
With so many major challenges to address – from banking to online security to healthcare – the SaaS / cloud market in LATAM was already one of the fastestgrowing in the world last year . Adding more fuel , new regulations such as eFX in Brazil – which allowed financial institutions to process foreign exchange transactions up to US $ 100,000 with immediate settlement and through an e-commerce platform – are expected to push new solutions and business models for ‘ macro payments ’.
The B2B market for SaaS / cloud has become a mega-opportunity in Latin America , with a projection of almost 30 % annual growth through 2026 , per EBANX calculations based on IDC and Statista ’ s data . With an average value of US $ 45,000 today for a B2B SaaS contract purchase in the region , these high-ticket items are about 80 % of the total SaaS / cloud online payments volume in LATAM , versus 20 % of the B2C SaaS / cloud services .
“ LATAM is seeing a strong expansion of cloud services for companies , directly linked to the digital market expansion and the evolution in the payments ecosystem ,” said Erika Daguani , VP of Product at EBANX . �
46 www . intelligentfin . tech