Digital payments are surging like never before across Latin America, with small and micro businesses increasingly embracing e-cash solutions during the pandemic era.
Due to the mobility restrictions imposed by COVID-19, almost half of Latin American small businesses accept electronic payments, according to a new study conducted by American financial services giant Visa.
This comes barely a week after pymnts.com reported that digital payments in Latin America had increased 80 fold over the past two years.
Considering its report, digital payments increased by 200% in Brazil and 250% in Mexico. The phenomenal surge in e-commerce has also contributed to the increase in e-payments.
Businesses that adopted e-payments saw their sales grow 74%, according to Visa. “The change that has occurred in twelve months is equivalent to what in normal conditions would have occurred in ten years,” reported Efe quoting Juan Pablo Cuevas, vice president and head of Visa Business Solutions for Latin America and the Caribbean, as saying.
“Of all the businesses that began accepting electronic payments during the pandemic, 80% were small or micro-businesses, and the most popular new adoption systems were QR codes (32%), sales through the website (30 %), and contactless payments by cards or cell phones,” the publication added.