Latin America (LATAM) is a region teeming with digital potential. As of 2021, over 70% of its population had access to the internet, and this figure continues to grow. Yet, it's essential to understand the region's unique economic and cultural context. Many Latin Americans either don't have bank accounts or prefer not to use them for online transactions. This is where local payment methods like OXXO in Mexico, Boleto in Brazil, and PIX, also in Brazil, come into play.
One of the reasons why local payment options are so popular is the cultural trust associated with them. For example, OXXO, a convenience store chain in Mexico, allows customers to pay in cash for their online purchases by presenting a barcode at any of their stores. The familiarity and widespread presence of OXXO outlets mean that many Mexicans, even those without a bank account or credit card, can participate in the e-commerce ecosystem. In a survey, 90% of Mexicans reported knowing what OXXO Pay is, and almost 60% had used it.
In Brazil, Boleto Bancário is an official payment method regulated by the Central Bank. It's a printed or virtual slip that customers can pay at ATMs, banks, and even some supermarkets. It's estimated that about 25% of all online transactions in Brazil are made using Boleto. On the other hand, PIX is a more recent instant payment system launched by the Central Bank of Brazil in 2020. Within just a year of its inception, PIX witnessed an astounding 92% recognition rate among Brazilians. Its instantaneity and flexibility to work 24/7 have made it a preferred choice for both consumers and businesses.
Implementing local payment methods can drastically improve the conversion rates for online sellers. Studies have shown that offering preferred local payment methods can increase conversion by up to 30%. When customers see a familiar and trusted payment option, they are more likely to complete the purchase, reducing cart abandonment rates. One of Growthmill’s customers saw a 12% sales increase in the first week after implementing Growthmill’s PayOffline solution in their Shopify store.
One cannot stress enough the sheer potential of the unbanked population in LATAM. As of 2021, there are approximately 210 million unbanked adults in the region. By providing local payment options like OXXO, Boleto, and PIX, businesses can tap into this massive market segment, which would otherwise remain inaccessible. That's potentially millions of additional customers waiting to be reached.
The future of e-commerce in LATAM seems to be intertwined with the adoption of these local payment methods. As technological integration becomes smoother and as more consumers come online, the blend of convenience and trust that these payment methods offer will continue to drive sales upwards. For online sellers aiming to establish or expand their footprint in LATAM, integrating OXXO, Boleto, and PIX isn't just an option—it's a strategic imperative.
Stripe's robust API architecture is designed to simplify integration for businesses of all sizes. With just a few lines of code, online sellers can integrate OXXO, Boleto, PIX, and numerous other payment methods. For businesses without dedicated tech teams, this ease of integration can be invaluable. It means reduced setup times and quicker market entry. For more complex integrations, the Growthmill team leverages their 9 Stripe certified resources to build the right solution for clients. For Shopify sellers, Growthmill’s PayOffline solution can be implemented in 10 minutes without any code.
One of Stripe's most compelling features is its unified dashboard, which lets merchants manage transactions from all payment methods in one place. Whether it's a credit card payment from Europe or an OXXO payment from Mexico, all transaction data is accessible through a single interface. This centralization reduces complexity and helps merchants stay organized, especially when dealing with multiple payment streams.
As the financial regulatory landscape evolves, staying compliant can be a challenge for businesses. Stripe automatically updates its systems to stay in line with local regulations, ensuring that transactions through OXXO, Boleto, PIX, or any other method meet all legal requirements. This offloads a significant regulatory burden from businesses.
Growthmill took their experience implement Stripe local payment methods and built PayOffline to satisfy the needs of Shopify stores in Mexico and Brazil. PayOffline is a SaaS platform built on Stripe that can be integrated into Shopify stores in less than 10 minutes.
After integrating with PayOffline, Shopify merchants can offer customers the ability to transact in OXXO, Boleto and PIX. After selecting one of these local payment methods during checkout, customers are presented with a voucher or QR code to complete the transaction. When the transaction is competed, the order is marked as paid in the Shopify dashboard and funds are typically deposited in the merchants Stripe account within 1 business day.
To learn more about PayOffline, try our demo store https://payoffline.myshopify.com/ or reach out to us to learn more about how we can help implement a custom experience for your LATAM customers.
