For global eCommerce retailers, it’s easy to get excited about the trend in Latin America where more countries are opening their markets and inviting internal and external competition. That movement has its genesis in Latin America’s largest economy, Brazil, which liberalized its markets back in 2010. It’s taken almost a decade but now, we’re seeing other countries start to follow Brazil’s lead.
Still, those eyeing expansion encounter unique challenges along with opportunities across every border. You need a local partner with Latin American experience to give you the best roadmap.
We’ll start with the three biggest and most welcoming Latin American markets – Brazil, Mexico and Argentina.
With a young and socially active population of over 200 million – and even better, open markets – you can see why the Brazil could be the first stop for companies expanding into Latin America. But Brazil is just emerging from a serious 2015-2016 economic downturn that slowed growth and changed patterns of consumption.
Here’s what you need to know:
The Brazilian market is the largest eCom market with a number of local payment methods. Make sure to partner with a local payments provider that can translate these payments into a great consumer experience.
With the second-largest population in Latin America and a solid middle class, Mexico is promising for companies looking to expand geographically. But the allure of its millennial spending power is offset by the realities of the payments landscape.
Building trust and credibility within the financial community takes time. The right partner will have local resources on the ground with years of operating experience.
Of Latin America’s three largest economies, Argentina is struggling the hardest to emerge from recession. This year’s forecast will have its challenges, but both imports and private consumption are expected to turn positive by next year, making the market ripe for expansion.
Here are some factors to consider:
You want a processor with a unified API, who can put you in the middle of markets with limited technology change. This also helps when it comes time to expand, letting you move quickly with fewer roadblocks.
With thousands of people on the ground in Latin America, First Data is committed to innovative solutions that respond rapidly to any need, any challenge and any opportunity. Through our unified API and pan-regional presence, First Data can get you into the right Latin American markets to take advantage of this growing eCommerce market.
So, say hello… to LATAM expansion.
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