Pandemic was not all bad; it wrote some of the successful stories. One of them is a connected economy in Latin America. There was a rapid digitization record in some of the regions.
Latin America was all cash-depended. The slow internet speed and digital payments were less. It was a very different picture than things are now. The Lucrative new market into LatAm assisted connected economy.
The pandemic compelled two things. One, traditional banks needed to be more imaginative. They gave out digital payment options to the community. And two, the population stepped out of their comfort zone of only utilizing cash.
With two years to experiment, individuals in the region become more accustomed to digital payments. They feel a little more comfortable with digital wallets. The thought of a connected economy became a reality. It is such as PIX in Brazil and Mercado Pago across the region. This is in line with the rise of eCommerce. It also provides a glimpse of the enormous potential in this sector.
Smartphone penetration and increasing use of debit cards were also a great help. It was a digital-first alternative payment method. They are the driving forces for the development of digital payments in Latin America.
According to Shargorodsky, “digital wallet use increased by nearly 40% between 2020 and 2021, while debit card use increased within the same period. Smartphones have been critical to digital development, as has improved connection in a variety of forms, ranging from streaming services to retail businesses digitizing their wares. “
Many services necessitated a physical presence but no longer did. Also, the same is true for purchasing basic items and accessing entertainment.
Companies that were more brick-and-mortar digitalized their services because of COVID. They perceive a significant increase in revenue.
Latin America transformed into an increasingly more connected economy. Marketers now range from consumer goods to streaming entertainment. It must master the dialects to engage. This is especially crucial for payments. It also highlights localization affects other elements as well.