Latin America represents a unique set of challenges and opportunities. While there are challenges with regards to infrastructure and access to financial services, rapidly increasing adoption of mobile and alternative payment methods is beginning to shift the narrative for the better. It is expected that by 2025, 75% of Latin America’s population will subscribe to mobile services, closing the gap with the average for developed markets, which stands at 87%. According to GSMA, by 2022, mobile usage alone will contribute US$330bn to Latin America’s economic value added, or 5.2% of the region’s GDP.
Fintech was the No. 1 sector of venture capital investments in Latin America last year, and there are no signs of it slowing down anytime soon. APMs like digital wallets are bringing in smart solutions to help reach the unbanked population, opening access to global e-commerce and gradually creating a more inclusive financial system. Processing over a billion dollars a day and generating direct revenues of over $2.4bn annually, mobile money has transformed the payment landscape in many emerging markets, including those in Latin America. With over 34 deployments and 21.5m registered accounts in 2017 alone, mobile money in Latin America has been instrumental in the growth of the digital economy.
To further accelerate this progress, the entry of new players on both the demand and the supply side of the payments-as-a-platform approach will be essential. The network effects realised with more inclusive access, coupled with the proliferation of new technologies such as 5G and Artificial Intelligence, will enable people across Latin America to truly be able to participate actively in the shaping of a better tomorrow.
We at DOCOMO Digital are pleased to present our latest report on the digital ecosystem in LatAm to better understand the nuances across the major economies in the region, and how companies can be a part of this region’s growth story.
To download this report, visit http://bit.ly/DD_LatAm on our new website