Mobile Payment in Latin America by 2025…
- 484 million mobile users – GSMA
- More than 60% of the population will be connected to the mobile Internet, 67% of them with 4G – GSMA
- 80% smartphone penetration rate – GSMA
Latin America, a region with many opportunities
The mobile industry in Latin America has risen to the challenge of sustaining social and economic activity. It is one of the most promising regions in the world. The speed of development of telecoms networks, connectivity and digital services allows us to foresee a significant evolution of the digital landscape in the region. At the heart of this evolution are key players: the operators! Operators have indicated that they will invest more than $99 billion in telecom infrastructure in Latin America by 2025, a significant investment that will undoubtedly have a major impact on connectivity and create some very interesting opportunities.
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The boom in mobile data consumption illustrates the multiple opportunities available in Latin America. According to GSMA forecasts, data consumption will increase 5.1 times between 2019 and 2025, from an average of 4.7 GB per month to almost 24 GB by 2025! The exponential evolution of data consumption and the high adoption rate of smartphones in the region open up new opportunities for digital solutions. Among these prospects, fintech services are at the heart of the future challenges. The amount of global investment in the digital financial services sector has risen from $700 million in 2018 to over $2,100 million in 2019 (GSMA)! This trend has undeniably increased with the effects of the Covid-19 crisis, allowing Latin America to be seen as a land of opportunity for mobile payments.
Latin America is a region in which the digital landscape is evolving at considerable speed. Low financial inclusion rates and high smartphone adoption make Latin America a particularly interesting region for mobile payment service deployment. After Africa and Asia, Latin America is one of the regions where mobile money services are highly developed. Given the low rate of bank penetration, telecom operators have been able to meet the growing demand for digital financial services in the region by adapting to the needs and technological characteristics of the area. Between 2019 and 2020, the number of transactions via mobile money solutions increased by more than 30% (GSMA), illustrating the development potential of this type of services.
As in many other areas of the world, the Covid-19 pandemic has highlighted the importance of digital technology while underlining the various limitations related to connectivity and accessibility. With the gradual shift to an increasingly digital economy in which work and remote learning are becoming more prevalent, connectivity remains a major issue for the economic and social well-being of the region. With nearly 300 million people not yet connected to the mobile Internet in the region (GSMA), this figure highlights both the region’s potential and the room for development. One of the major challenges of the future in Latin America is the deployment of efficient connectivity, which is all the more important as the mobile industry already represents more than 7% of the region’s GDP (GSMA).
The key to success in Latin America? Taking the digital transformation to the next level!
In a region where countries such as Brazil, Colombia, Chile and Mexico are undergoing major changes in terms of connectivity, it is essential to take the plunge in digital transformation by offering services adapted to local realities. The digitalization of Latin America is at the heart of economic, social and political issues. All public and private players are contributing to the evolution of the digital landscape by investing in infrastructure and adjusting regulations to the needs of new digital strategies. Beyond the real development opportunities for Latin America, the challenge of digital transformation also lies in the ability of digital players to offer services that meet the local needs of users through a strategy built around the most important device on the continent, the smartphone!