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Brazil's payments market has been growing rapidly, and this expansion has combined with several other factors to lay the foundation for a potential surge in mobile payments, technology expert Bethan Cowper wrote in American Banker.
Brazil's promising demographics
Cowper, head of international marketing for payment systems software provider Compass Plus, emphasized that Brazil currently accounts for 70 percent of Latin American e-commerce transactions.
Many demographics make the South American nation a promising market for payments, she noted. Brazil boasts more than 270 million mobile subscriptions, nearly 25 percent higher than the country's population of 199 million. Close to 40 percent of these inhabitants are less than 24 years old, according to additional figures provided by Mercator Advisory Group.
Technological advancement
In spite of these promising conditions, Brazil's adoption of mobile payments has been sluggish, according to PYMNTS.com. However, there are many factors that could cause the tide to turn. For starters, Brazilian consumers seem to be growing more tech-savvy, as in 2013, sales of smartphones surpassed those of feature phones for the first time.
This technological advancement could continue in the coming years as Visa promotes contactless technology for the 2016 Olympic games, based in Rio De Janeiro, PYMNTS.com reported. To ready Brazil's infrastructure for large-scale consumer use, card brands, mobile service providers and the nation's government are all working together.
Another factor that could help fuel the adoption of mobile payments is new regulations that spur competition in the space, wrote Cowper. These new restrictions affect both payment services providers and mobile providers.
She noted that amid all these factors, and the various parties that have all contributed to preparing Brazil's infrastructure for mass consumer use, the future of payments in the country could emphasize mobile far more heavily.
Garnet Capital Advisors 500
Mamaroneck Avenue, Harrison, NY 10528
(914) 909-1000
info@garnetcapital.comGarnet Capital Advisors 500
Mamaroneck Avenue, Harrison,
NY 10528
(914) 909-1000
